Electricity prices - Hungary

Hungarian Electricity Market

Generation Mix

Hungary’s grid mix is dominated by nuclear and solar. In 2023 about 45% of generation came from the Paks nuclear plant. Solar PV output has surged: by 2023 roughly 18–20% of electricity was from solar (nearly matching large solar growth). Together these “carbon-free” sources made up about 67% of generation. Smaller contributions come from biomass/waste (≈7%), wind (≈2%), and hydro (a few percent). Coal power has been fully phased out by 2025, so fossil fuel supply is now mainly natural gas (roughly 25–30% of generation). Despite strong domestic output, Hungary remains a net importer of power. In 2023 net imports equaled about 25% of consumption (importing ~20 TWh and exporting ~9 TWh against ~35 TWh domestic output).

End-Customer Price Formation

Household and business electricity bills comprise several parts. The energy cost depends on whether customers buy at regulated (capped) prices or on the liberalized market. Hungary has long subsidized residential power: retail prices are now very low – over 60% below the EU average – due to the government’s “rezsicsökkentés” regime. Above the energy commodity charge, consumers pay network fees for transmission and distribution. These are set by the regulator/Government to recover the costs of MAVIR (TSO) and the regional DSOs; they are published annually as system-usage tariffs. For example, high-voltage customers pay a fixed capacity charge and per-kWh energy charge; low-voltage (residential) customers pay per-kWh fees that cover local grid costs.

On top of these, taxes and levies apply. Hungary imposes an excise duty on electricity (EUR 0.84/MWh, slightly below the EU minimum). VAT on electricity has been sharply reduced (recently cut from 27% to just 5% in 2024). There are also public-service surcharges for support schemes (e.g. feed-in tariffs for early renewable contracts), though these are modest and being phased into market-premium programs. In sum, a typical household’s kWh price is the sum of: (1) energy price (wholesale + supplier margin), (2) network charges (TSO+DSO), (3) excise duty and other state fees, and (4) VAT. (For reference, 2025 end-user rates for typical consumption have been kept flat by regulation, but underlying components follow the above breakdown.)

Dynamic (“Flexible”) Tariffs

A dynamic (flexible) tariff in Hungary is a supply contract whose unit price varies in real time with the wholesale market. By EU law (Electricity Directive 2019/944) and Hungarian law, suppliers must offer such tariffs to consumers with smart meters. Concretely, the customer’s energy price is set by hourly spot-market rates on HUPX (the Hungarian Power Exchange) – typically the day-ahead auction prices (€/MWh for each hour) and possibly intraday adjustments. This means the price paid for every kWh can rise or fall hourly (even going negative if wholesale prices do). Customers on dynamic contracts pay exactly the exchange-indexed energy cost (plus any agreed margin), instead of a fixed flat rate.

Because consumption is metered in fine intervals, dynamic tariffs require advanced meters. In Hungary, only users with remotely‑read “smart” consumption meters can take these tariffs. (Hungarian law explicitly requires suppliers to inform customers about smart-meter installation if switching to a multi-zone or flexible tariff.) Users typically install a 15‑ or 30‑minute interval smart meter so hourly (or shorter) usage can be tracked and billed. The consumer can then shift loads (e.g. run appliances) to low-price hours to save money, or curtail use when prices spike.

Domestic regulation of dynamic pricing follows the EU Electricity Directive. The Directive mandates that by 2026 every consumer with a smart meter must be able to request a dynamic contract with at least one supplier. Hungarian law transposed this: Act LXXXVI/2007 (Electricity Act) and Government Decree 273/2007 define a “rugalmas árszabás” (flexible pricing) contract. Suppliers are required to offer at least one flexible-price contract option and must inform customers about these contracts’ conditions, costs, risks, and the smart-meter requirement. Importantly, switching to a dynamic tariff is voluntary and requires the customer’s consent. The regulator (MEKH) will monitor the uptake, but customers cannot be forced onto these contracts without approval.

Major Suppliers of Dynamic Tariffs

Several large Hungarian retailers now market dynamic-price plans. The main players include the incumbent utilities and liberalized suppliers:

• E.ON (Hungary) – via E.ON Energiaszolgáltató Kft. and ELMŰ-ÉMÁSZ Energiakereskedő Kft., covering most of the country. Both offer exchange-indexed day-ahead contracts to households and businesses.
• MVM Partner Zrt. (state-owned) – successor to the old ELMŰ universal service, offers flexible pricing to residential and small commercial clients.
• MET Magyarország Zrt. – a large energy trader, offering dynamic tariffs primarily to industrial and commercial customers.
• PPD Hungária Energiakereskedő Kft. – major supplier for factories and businesses (and some open-market homes), with HUPX-indexed options.
• WIEE Hungary Kft. – independent supplier (focused on renewables), selling market-priced contracts (including dynamic deals) to industry.

Other suppliers (e.g. Nordest, AVE/Cross-Inergy, etc.) also offer variable-price plans, but the ones above serve the largest customer bases. In the table below, “Yes” means a supplier offers an exchange-linked (HUPX-based) tariff for that customer category:

Peak and Off-Peak Hours

Hungary 2024 – Average Hourly Wholesale Electricity Price (HUPX)