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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure HU-2022-32/2781 Updated – measures in Hungary

Utility price cap for micro-companies

Rezsicsökkentés mikrovállalkozásoknak

Country Hungary , applies nationwide
Time period Temporary, 01 August 2022 – 31 December 2026
Context War in Ukraine
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for energy bills
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Measure added 29 August 2022 (updated 05 January 2026)

Background information

Small and medium-sized companies (with a revenue of less than HUF 4 billion a year and 10 or fewer employees) received subsidised energy prices in a COVID-19 related measure from December 2021 to June 2022 (see case HU-2021-50/2161 ).

As of 1 August 2022, a smaller circle of companies, microcompanies with revenue of less than HUF 800 million a year (about €2 million) and 10 or fewer employees will be included in the measure of energy price caps for microcompanies under government decree 217/2022.

Content of measure

The subsidised lower energy prices will be available for microcompanies up to an annual consumption level of 4,606 kilowatt hour (kWh) for electricity and 1,489 m3 for gas. On August 23 this limit was changed to 54,810 megajoule (MJ) per year to account for differences in heating value.

Companies with registered metres for small consumption (up to 20 m3/hour capacity for gas and 3x63A output for electricity) are eligible. A market-based price will apply to consumption above these limits. Local governments and operators of social institutions will only receive the subsidised price after their clients’ consumption. Business consumers who were earlier in the subsidised scheme started in 2021, but no longer qualify must make a statement attesting this to their energy provider by 1 July 2022.

Updates

The following updates to this measure have been made after it came into effect.

12 November 2025

Energy Ministry decree EM 31/2025 orders allocations to finance the scheme into 2026.

01 August 2025

Government decree 236/2025 aims to remove the price cap scheme from among emergency (first COVID-19, then war) laws and by amending several other ministerial decrees on energy prices (Energy Ministry decree EM 20/2025), the scheme is upheld. Govt decrees 217/2022 and 259/2022 are no longer in force, but the price cap scheme both for households HU-2022-32/2778 and microcompanies continues under unchanged conditions, according to the Act LXXXVI of 2007 on Electricity, modified from 1 August 2025.

17 November 2024

The government amended decree 217/2022 to extend eligibility to microcompanies whose electricity contracts expire in 2025. Only companies who have individual contracts with the power network operator are eligible.

28 April 2023

The utility price cap scheme for microcompanies was extended indefinitely by an amendment of government decree 217/2022

13 December 2022

The utility price cap scheme for microcompanies was extended by government decree 217/2022 until 30 April 2023 (from 31 December 2022).

Use of measure

About 100,000 microcompanies are estimated to be included in the measure according to government sources (portfolio.hu). The eligibility extension from 2025 may not be as wide as the "hundreds of thousands" of beneficiaries forecast by energy minister Csaba Lantos, according to portfolio.hu. The paper reckons that the requirement to possess "individual network contracts" will exclude many small firms, for instance, if they rent a shop in a shopping centre and have a power contract with the mall-operator.

Target groups

Workers Businesses Citizens
Does not apply to workers One person or microenterprises
Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

No involvement was reported.

Views and reactions

The National Association of Entrepreneurs and Employers (VOSZ) Secretary General László Perlusz told the press that earlier 30,000-40,000 SMEs were supported by lower energy prices. For those who are no longer benefiting from the measure, costs will rise up to sevenfold. Only small companies that are not manufacturers can make use of the low threshold set for the subsidised price, he said (penzcentrum.hu). "Catering, tourism, but also retail will suffer and really, all sectors will be affected. Energy efficiency investments are needed for companies to survive, but these could take years," he told portfolio.hu. The Hungarian Caterers’ Association said more jobs could be lost in the industry due to the utility price cap cut than due to COVID-19 if no help arrives from the government, hvg.hu reports.

Sources

  • 17 June 2022: Only non-manufacturing firms can stay in the price cap scheme (www.penzcentrum.hu)
  • 18 June 2022: Details on energy price cap for microcompanies (www.portfolio.hu)
  • 24 August 2022: Govt decree 217/2022 (njt.hu)
  • 05 September 2022: Wave of bankruptcies and high prices coming (www.portfolio.hu)
  • 13 September 2022: Caterers to shred more jobs than during COVID-19 (hvg.hu)
  • 15 September 2022: Local governments association: energy price cap needed for local governments (www.napi.hu)
  • 31 May 2023: Govt was right about price cap scheme usage limit (g7.hu)
  • 17 November 2024: Govt decree 217/2022 amended (njt.hu)
  • 20 November 2024: Eligibility extension for microcompanies in price cap scheme (www.portfolio.hu)
  • 01 August 2025: Energy Ministry decree 20/2025 (njt.hu)
  • 01 August 2025: Govt decree 236/2025 (njt.hu)
  • 01 August 2025: Act LXXXVI of 2007 on Electricity amended (njt.hu)
  • 12 November 2025: Energy Ministry decree 31/2025 (njt.hu)

Citation

Eurofound (2022), Utility price cap for micro-companies, measure HU-2022-32/2781 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2022-32_2781.html

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