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.

Use of measure

About 100,000 microcompanies are estimated to be included in the measure according to government sources (portfolio.hu).

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)