Tisza Party's Energy Program Would Cripple Hungarian Households Financially

Peter Magyar would fulfill Brussels’ demand and cut Hungary off from Russian energy sources. The move would raise the average Hungarian family’s annual electricity and gas bill by 510,000 forints, and for low-income households by 540,000 forints.

Peter Magyar, president of the Tisza Party (Photo: Balazs Hatlaczki)

According to a new analysis by Szazadveg, more than one million households would be unable to pay their utility bills if the Tisza Party’s energy program were introduced. The study emphasized that Peter Magyar would put households under double pressure.

Peter Magyar and Zoltan Tarr, president and vice-president of the Tisza Party (Photo: MTI/Tamas Purger)

On the one hand, the Tisza Party’s drastic tax hike plan would reduce the disposable income of most employees in Hungary. On the other hand, the party has made Brussels’ demand for cutting off Russian energy carriers part of its official program. This would mean fuel prices above 1,000 forints per liter and utility bills three and a half times higher than current levels, drastically increasing families’ expenses,

Szazadveg writes.

The research institute noted that the Tisza Party is trying to hide this double squeeze: at one forum, the party’s vice president said that “we should not talk about austerity before the elections, because if we told everything, we would lose. But if we win, then anything is possible.” At another event, a party advisor remarked that questioning the utility price cuts should not be proposed “because it’s a hot issue,” but after some time “it could be brought up.”

Low-Income Families Would Suffer the Most Under Peter Magyar’s Energy Program

A household’s energy needs are determined not primarily by income but by factors such as the size of the home, the number of people living there, the number of appliances and the efficiency. Domestic data confirm this: differences in average utility costs across income groups are relatively small in Hungary.

Source: Szazadveg/KSH EJEF, 2023 - Szazadveg estimate                                                                    Graphics: Magyar Nemzet 

The lowest-income fifth of households has the highest annual energy costs (209,000 forints), while the wealthiest fifth has the lowest (192,000 forints), a difference of only 17,000 forints.

The Tisza Party’s energy program would drastically raise electricity and gas prices, amplifying the differences between income groups. Peter Magyar’s measures would hurt the wealthiest the least – for them, the increase would be 495,000 forints a year, which is 45,000 forints less than the hardest-hit group: the lowest-income households, whose bills would rise by 540,000 forints. Such a burden could not be managed by large segments of society.

Tisza Party’s Program Would Push Masses of Households Into Insolvency

Thanks to the current government’s utility price cut scheme, energy poverty has fallen the most in Hungary among EU member states. Before 2010, misguided government decisions had driven household electricity and gas prices so high that they became unaffordable for many.

Source: Szazadveg/Energy Poverty Advisory Hub                                                                                     Graphics: Magyar Nemzet

Before the utility price cut scheme was introduced, one in four households could not pay their utility bills for financial reasons. By 2024, that share dropped to 7 percent, or 287,000 households.

Peter Magyar’s energy program would halt this positive trend and cause serious existential difficulties for a wide segment of the population. The proportion of households unable to pay their utility bills for financial reasons would rise to 29 percent, affecting nearly 1.2 million households – that is, 2.8 million Hungarians.

Cover photo: Peter Magyar, president of the Tisza Party (Photo: Balazs Hatlaczki)