Hungary remains one of the cheapest energy markets in Europe

The Hungarian government has announced that gas and electricity prices will increase significantly above a certain level of use. According to government calculations, three quarters of Hungarian households will not be affected. The market tariff, which will come into force in August, is more expensive than the reduced tariff, but still average for Europe. Including the reduced prices, residential energy is among the cheapest in Hungary.

Rise in electricity and gas prices

It has been made official that the price of gas and electricity in Hungary will rise above average consumption from August. A quarter of all Hungarian households will be affected by the new law. Gas will cost significantly more over 144 cubic metres per month and electricity over 210 kWh.

It is important to stress that this is still a lower price than the current market price. In other words, the Hungarian government has not transposed the world market price into practice. Gas prices will jump by a factor of seven, while electricity will cost twice as much after the limit. The government has named several exceptions. Reduced tariffs for large families and households using renewable energy sources will be maintained, vg.hu reports.

Read also: EU gives Hungary a month to act before they suspend funds!

Hungary at the top of the cheapness list

Despite the rise in electricity and gas prices, Hungary is still cheap by European standards. Even if you take the newly introduced residential market tariffs as a benchmark, you still pay more in the northern European capitals, as well as in Rome and Vienna.

If we include three quarters of Hungarian households, who continue to receive gas and electricity at reduced prices, we get a very different result. Out of the 3.5 million consumers registered in the gas supply, 2.6 million are not subject to price increases. This shifts the average significantly. Thus, Hungary has the fifth lowest gas prices in Europe for the whole Hungarian society.

For electricity, the situation is even clearer. The increased Hungarian electricity price is also at the bottom of the list. And the electricity price for three quarters of households is the second lowest after Belgrade.

Energy prices have exploded in the last 1-1.5 years. The impact of the Russian-Ukrainian war is clearly visible. According to an article by 24.hu, the effect of the increased prices is also evident in the growing demand for solar panels in Hungary.

Source: 24.hu, vg.hu