Are the foundations being laid for the abolition of utility cost reductions amid the energy crisis?

Energy expert Attila Holoda has raised concerns about Hungary's utility cost reduction system, suggesting it is no longer fit for purpose and requires significant reform. Holoda, who previously served as a deputy state secretary in the Orbán government before supporting the opposition in local elections, believes the current system, designed over a decade ago, fails to address the drastic increases in global energy prices.

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The utility cost reduction in its current form is not suitable for what it was originally intended for, as many people are left out. The system suggests that nothing has changed in the global market for over a decade, even though the price of energy and everything else has increased drastically.

Speaking on the Kompország podcast, Holoda argued that the utility cost reduction, or "rezsicsökkentés," in its present form is inequitable, as many consumers are excluded. He pointed out that the system operates as if the global market for energy and other goods has remained stagnant, despite significant price hikes over the past fifteen years. "People feel that the price is being paid elsewhere," he noted, implying that the burden is being shifted indirectly.

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People feel that the price is being paid elsewhere.

Holoda stressed the need to overhaul the system to make it more equitable and better tailored to individual consumer needs. He warned that if the utility cost reduction applies universally without differentiation, it leaves insufficient funds for the essential maintenance and development of the energy infrastructure. This lack of investment could jeopardize the long-term stability and efficiency of the system.

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The system needs to be transformed, made more equitable, and much more tailored to the consumer.

The expert's comments come amid broader discussions about Hungary's energy security and the economic impact of global market fluctuations. His call for reform highlights the challenges of balancing affordable energy for citizens with the need for sustainable investment in critical infrastructure.

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We also need to consider that if the utility cost reduction applies to everyone, there isn't enough money for the maintenance and development of the systems.