Utility Cost Crisis Across Europe Due to Brussels, Hungary Will Not Give In

Rising energy prices driven by Brussels’ sanctions decisions and high carbon taxes are causing serious livelihood difficulties for households across Europe. Around one fifth of Europeans cannot properly heat their homes, while more than one quarter struggle to pay their utility bills, as shown by the latest survey by Szazadveg's Project Europe. According to the study, thanks to the utility cost reduction program, Hungary has the lowest level of household exposure in both indicators within the European Union.

Utility cost crisis across Europe (Photo: Andras Peter Nemeth)

Brussels’ misguided sanctions decisions and high carbon taxes have pushed up market energy prices, which have also appeared in household tariffs in most member states. Rising utility costs are causing serious livelihood difficulties for a wide range of households: today, around one fifth of Europeans struggle with heating, while more than one quarter face payment problems. Thanks to the utility cost reduction program, Hungary has the lowest level of household exposure in both indicators, Szazadveg writes.

Crisis caused by rising utility costs across Europe (Source: Szazadveg, Project Europe. CATI method, n=30,000. Data collection: October 8, 2025-December 10, 2025)

The energy crisis, sanctions, and carbon taxes that are high even by global standards have caused significant price increases on European electricity and gas exchanges. In those EU member states where household tariffs are regulated more loosely, market processes have directly appeared in household energy costs. As a result, today an average EU citizen pays significantly higher electricity and gas bills than, for example, an American consumer.

According to the latest results of Szazadveg's Project Europe research, the rapid and substantial increase in living costs has caused serious existential difficulties for broad segments of society across Europe. Twenty percent of the EU population cannot properly heat their homes, while 28 percent have experienced in the past year that, for financial reasons, they were unable to pay their utility bills on time.

Differences between member states are mainly explained by different solutions in tariff regulations and households’ ability to adapt. The proportion of those struggling with heating is lowest in Hungary (5 percent), Finland (10 percent), and Luxembourg (12 percent), while it is highest in France (28 percent), Cyprus (30 percent), and Greece (45 percent).

Hungary’s favorable data is primarily the result of the utility cost reduction program, which, alongside strict state price regulation, provides the lowest household tariffs within the European Union.

In Finland, the high share of wood-based heating reduces costs, as these have increased much less in recent years compared to gas and electricity prices. In Luxembourg, high income levels provide broader protection for households.

By contrast, southern member states have less favorable infrastructure and income conditions, and governments have not everywhere been able to provide effective tariff protection for residential consumers. It is instructive that in France, despite being one of the European Union’s stronger economies, tariff increases have caused serious cost of living crisis for broad segments of society. This is mainly due to the high share of electricity-based heating and lower levels of energy efficiency.

Latest results of Szazadveg’s Project Europe research (Source: Szazadveg)

The proportion of people struggling to pay utility bills is also lowest in Hungary (14 percent), followed by Austria and Sweden (21 percent each). At the other end of the ranking, similarly to heating difficulties, are Greece (45 percent) and Cyprus (40 percent), alongside Ireland (39 percent), which are among the most affected countries.

Cover photo: Utility cost crisis across Europe (Photo: Andras Peter Nemeth)