Hungary is experiencing high electricity prices due to various factors, such as global energy shortages, the COVID-19 pandemic, Russian-Ukrainian war, and insufficient hydropower production due to drought. According to the latest data, Hungary has the most expensive electricity in Europe, with an average price of 306 euros per megawatt hour on November 12, 2022.
This is 10-20% more expensive than neighboring countries and up to twice as expensive as some other European countries. The global energy market situation and tighter EU regulations are affecting the Hungarian electricity market. The Hungarian government is planning to develop renewable energy sources and has a nuclear power plant project, Paks II, which could help stabilize prices.
However, the sustainability of the long-term overhead reduction policy has become questionable. The high electricity prices are not a direct result of European sanctions policy or the war, but rather a strategic failure in Hungary’s energy supply strategy. The Hungarian government needs to change its approach to overcome this situation and secure a more stable and affordable energy future.
