2019 DC Utility and Service Life Overview PDF
2019 DC Utility and Service Life Overview PDF
2019 DC Utility and Service Life Overview PDF
Utilities
The Hungarian Energy and Public Utility Regulatory Authority (HEA) has decreased the residential
consumer’s rate on natural gas, electricity and district heating services by 18% over the past four years
to give relief to the household income. These price cuts were applied to households and small users
only. These cuts have caused higher prices for commercial and industrial users excluded from the cuts.
This is likely to have repercussions on the investment climate in the energy sector in the future.
Natural gas is available at US$0.686/ therm or US$0.0232/ kWh or US$6.86/ MBTU’s at 5 PSI from the
main at the street. The water and sewer rate is a flat consumption rate of US$3.56/cubic meter.
Utility rate structures shall be expected to rise at the following rates of escalation:
General Inflation rate for future cost items (replacement items, maintenance and anticipated
future costs) will be 3%
Owner’s Rate of Return for monetary decisions (this is to be used for bringing future costs back
to present net worth dollars) will be 4%.
The Life Cycle Analysis shall illustrate a 50-year study and bring all costs back to a total present value
sum for each alternative so the building owner understands in present dollars which alternatives
represent the best life cycle value.