Hungarian Energy Prices in an OECD Comparison

TMP Vol. 12., Nr. 1., pp. 9-18. 2016.

10 Pages Posted: 14 Apr 2017

Date Written: July 1, 2016

Abstract

The goal of the study is to assess the effect of the utility cost reductions announced by the Hungarian government in 2012 on Hungarian energy prices. The effects are discussed in an OECD comparison. It is concluded that the government price control has resulted in a 15% steeper price reduction occurring 5-7 quarters earlier, compared to other OECD countries. The price reductions saved around 202 billion HUF for Hungarian households in 2014, which was around 0.63% of the GDP. If prices are compared to the monthly average wages however, household energy prices are still high in Hungary. One of the costs of the reduction in household energy prices was an increase in energy prices for industry: the industry/household price ratio is highest among OECD countries in the case of natural gas, and third highest for electricity.

Keywords: electricity, Hungary, natural gas, price control, utility cost reduction

JEL Classification: E64, Q41

Suggested Citation

Bartha, Zoltan, Hungarian Energy Prices in an OECD Comparison (July 1, 2016). TMP Vol. 12., Nr. 1., pp. 9-18. 2016., Available at SSRN: https://ssrn.com/abstract=2952242

Zoltan Bartha (Contact Author)

University of Miskolc ( email )

Egyetemváros
H3515 Miskolc-Egyetemvaros, H-3515
Hungary

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