Hungarian Energy Prices in an OECD Comparison

Authors

  • Zoltán Bartha University of Miskolc

DOI:

https://doi.org/10.18096/TMP.2016.01.02

Keywords:

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

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.

Author Biography

Zoltán Bartha, University of Miskolc

Associate Professor

References

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INDEX (2012): Döntött a kormány, csökkentik a rezsiköltséget (The government has decided to reduce the utility costs), accessed 1 June 2016, http://index.hu/gazdasag/2012/12/06/dontott_a_kormany_csokkentik_a_rezsikoltseget/

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DATA SOURCES EIA:

US Energy Information Agency database: http://www.eia.gov

EPURA: Energy consumption statistics provided by the Hungarian Energy and Public Utility Regulatory Authority: http://www.mekh.hu

HCSO: STADAT database of the Hungarian Central Statistics Office: https://www.ksh.hu/stadat

IEA: Energy prices and taxes database compiled by the International Energy Agency: http://dx.doi.org/10.1787/eneprice-data-en ű

MNB: Hungarian National Bank‟s exchange rate database: http://www.mnb.hu

OECD: OECD database: http://dx.doi.org/10.1787/data-00285-en

WB: World Banks‟s Commodity Markets database: http://go.worldbank.org/4ROCCIEQ50

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Published

2016-07-15

How to Cite

Bartha, Z. (2016). Hungarian Energy Prices in an OECD Comparison. Theory, Methodology, Practice - Review of Business and Management, 12(01), 9–18. https://doi.org/10.18096/TMP.2016.01.02

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