Chancellor Minister Gergely Gulyás announced in Wednesday’s Government Information briefing that the Hungarian government was declaring an energy emergency, and would be ending its signature utility price cut policy as part of its 7-point action plan to combat the problem.
Starting in August, reduced gas and electricity prices will only apply up to the consumption of the average Hungarian household. For electricity, this is 210 kWh/month, or 2,523 kWh annually; and for gas, 144 cubic meters/month, or 1,729 cubic meters annually. Those who consume above these average rates will have to either moderate their consumption or pay the market price.
Utility commissioner Szilárd Németh later said that households that consume beyond the consumption limit will only have to pay extra for the difference above that amount. The government believes that three-quarters of families will not be affected by the new utility policy.
Responding to a question, Gergely Gulyás said that no similar restrictive measures were being planned in regard to the cap on gasoline prices, despite the fact that over the weekend MOL CEO Zsolt Hernádi called the official cap of 480 Ft/liter on regular gas unsustainable.