Companies troubled by high traction prices in Hungary

The increased electricity prices in Hungary have led METRANS completely out of its freight rate calculations for 2022. The company had calculated its pricing in October 2021. However, “the unpredictable traction price increases” might lead to more expensive rate offers by the rail freight company.

METRANS appeared shocked by the traction price increase in Hungary. The phenomenon is not reduced only in the central European country since other rail freight markets also face similar problems. Nevertheless, the main problem for METRANS is that it cannot stick to its initial price offers for its customers and will need to recalculate its pricing after the end of January.

A foreseen development

The situation with energy prices is not new. As RailFreight.com analysed before, many Railway Undertakings and operators have to deal with skyrocketing rates that seem threatening for their future and development. However, the situation appears to be something that the market should get used to.

METRANS was aware of a possible increase of even 300 per cent or more in traction prices by the Hungarian infrastructure manager MÁV Zrt. After all, the Hungarian railway association Hungrail had warned before Christmas that the higher electricity prices in the country could also lead to a freight rate increase of 25-30 per cent.

Out of calculation

In October 2021, when the electricity pricing crisis started peaking, METRANS shared some calculations concerning the 2022 pricing with its customers. “These calculations informed the customers of a 10 per cent price increase,” explained the company. Nevertheless, the much higher electricity rates led the company to fall out of calculation since it will need to apply even higher rates than initially estimated.

“We are currently in discussions with the state authority, Hungarian infrastructure operator MÁV and the outcome is still unknown. We have received only a notice that further information will be presented to the sector in January 2022. Based on this fact, we would like to inform our customers that we will keep all the rates and conditions for 2022, as they were offered and discussed, till January 31st 2022,” stated the company.

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Author: Nikos Papatolios

Editor at RailFreight.com

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