Hungary continues to offer the lowest electricity and gas prices for households in the European Union, according to an August report by Finnish energy research firm VaasaETT. Thanks to long-standing government price controls, Budapest remains Europe’s most affordable capital for utilities — but only up to a certain consumption limit.
Since 2022, Hungarian households have only benefited from subsidized rates within an “average consumption” threshold. Usage beyond that is billed at higher, state-set tariffs that mimic market prices. For electricity, exceeding the limit by 20% leads to a 15% higher rate; for gas, the cost jump is even steeper — more than double.
In August, Budapest residents paid just €0.092 per kWh for electricity — less than half the EU average and four times cheaper than in Berlin. Only Kyiv reported lower rates. On the other end, prices rose in cities like Helsinki, Oslo, and Brussels due to increasing energy or distribution costs.
Gas prices in Budapest were €0.0253 per kWh, the lowest in the EU and a quarter of the average. Stockholm posted the highest rate, though experts caution that limited household gas use there inflates the cost per unit. Still, even in Amsterdam — a more realistic comparison — the price was seven times higher.
Back home, Hungarian households using 20% more gas than the average pay €0.0514 per kWh, still below the EU average but a steep increase compared to the subsidized rate.
Elsewhere in Europe, utility prices were mixed. Paris saw a 2% increase in household energy bills, while Athens, Brussels, and Rome recorded modest drops. Yet even after reductions, their tariffs remain three to five times higher than Budapest’s.
Former central bank governor György Surányi recently questioned the long-term viability of Hungary’s utility price caps. Removing the program could shift up to 800 billion forints (€2 billion) in costs onto consumers — a politically sensitive move that would dramatically impact household budgets.
Related article
Europe’s Cheapest Bills: Government Defends Utility Price Caps Amid Opposition Criticism
Energy commissioner Szilárd Németh warns that ending Russian imports and lifting subsidies would triple household costs and threaten Hungary’s energy security.Continue reading
Via Világgazdaság; Featured image: Pixabay
The post Budapest Tops EU Capitals for Cheapest Utility Bills — Up to a Point… appeared first on Hungary Today.
Source link
