Hungary, Subsidized energy bills may cost state some 3.4 billion euros

, SEE Energy News

According to the calculations of GKI Economic Research Institute, subsidized energy bills may cost Hungarian state some 3.4 billion euros, which comes to 846 euros per household.

Fuel subsidies already took some 800 million euros from the budget in 2021, which this year could rise to 3.4 billion euros. Hungary’s public deficit already reached 73 % of the full-year target by the end of March.

Prime Minister Viktor Orban announced last week that he would initiate immediate action in the EU to protect the cuts in energy prices. These would include decoupling gas and electricity prices, suspending the Emissions Trading System (ETS – a scheme to reduce greenhouse gas emissions) and suspending the requirement to blend biological ingredients into fuels.

According to GKI, even if the proposals were accepted by the member states, the price of electricity would not go down significantly. However, it is not very likely that these proposal will be approved.