Hardly a day goes by without Hungarian domestic opposition forces or Brussels attacking the Orban government’s utility cost reduction policy. According to Peter Magyar, leader of the Tisza Party, “Utility cost reduction is a sham. Today, Hungarians on average pay more for energy than the European average because the reduction only applies up to a certain level [of consumption].”
Relevant statements by Peter Magyar [aka Brussels Peter] at 28:23 in the video clip.
A striking statement—yet not a single word of it is true. Let’s look at the facts.
The reality is that Hungarian households pay only a fraction of what Europeans do for utilities.
According to Vilaggazdasag, data published by the Hungarian Energy and Public Utility Regulatory Authority (MEKH), based on an analysis by VaasaETT in Finland, confirms that in January, Budapest had the lowest gross electricity price in the EU for residential consumers. This applied both to those benefiting from the regulated price reduction on all consumption and those who had exceeded their consumption limit. Similarly, the gas price chart painted a favorable picture: the state-regulated residential price in Budapest was again the lowest in the EU. Even for those exceeding the regulated threshold, their tariff was only about twice the reduced price—yet still the fourth lowest in the EU.
The reason for Hungary’s record-low prices is simple: in 2012, the Hungarian government froze utility tariffs and later reduced them further, while other European countries adjusted their prices according to market fluctuations, leading to continuous increases for consumers.
MEKH publishes two separate prices for Budapest. The newly introduced rate reflects what households pay if their consumption exceeds the average threshold defined by the government in 2022 by 20%.
Consumers exceeding this limit do not pay the higher rate on their entire consumption of electricity or gas—only on the excess portion. While this excess tariff is referred to as a "market price," it is, in reality, also regulated.
Given these facts, it is clear that Peter Magyar is not telling the truth when he disputes the success of Hungary’s utility price reduction policy.
He does so because Brussels has long insisted that Hungary abolish the policy. Peter Magyar has thus begun attacking the reductions—because Brussels told him to.
It is also a fact that 23% of EU residents struggle with heating costs, and utility prices in neighboring countries are three to five times higher than in Hungary.
Hungary remains the only EU member state that has kept the proportion of affected households below 10%, largely thanks to government-controlled tariffs.
As previously reported, despite these facts and figures, Brussels issued an ultimatum: Hungary has two months to abolish the utility price reduction policy. Oliver Hortay, Szazadveg’s climate and energy policy director, warned that if Hungary does not comply, the matter could end up in court.
EU bureaucrats claim that Hungary has failed to implement an EU directive allowing service providers to set their own electricity prices—essentially a death sentence for the price reduction scheme.
However, Eszter Vitalyos, government spokesperson reaffirmed that the Hungarian government will not yield to pressure and remains committed to protecting Hungarian families and pensioners.
The government insists on maintaining Europe’s lowest utility prices in Hungary.
"The stakes are enormous—if Brussels forces this through the European Court and wins, Hungarian families will face drastic price increases," she warned.
