Levegő Munkacsoport proposes ending Hungarian utility subsidies

The Levegő Munkacsoport civil organization has submitted a proposal to Minister of Economy and Energy István Kapitány, calling for the termination of current utility price subsidies in Hungary. Based on a study by Zombor Berezvai, an associate professor at Corvinus University, the group argues that the current system wastes taxpayer money and disproportionately benefits wealthier households.

The study highlights several negative impacts of the artificial price suppression for natural gas and district heating, including increased overconsumption, environmental strain, and a nearly 900 billion forint annual burden on the national budget. Furthermore, the group claims the policy worsens the country's balance of payments, poses energy security risks, and discourages investments in renewable energy and building renovations by creating market disadvantages for efficiency-focused businesses.

To mitigate the impact on citizens, the organization suggests redistributing the savings gained from ending the subsidies directly to the population as monetary compensation, rather than waiting decades for long-term energy modernization to lower costs.