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Some Businesses Will Again Be Paying Full Market-price for Their Energy Supplies

Júlia Tar 2022.07.01.

From Friday, the rules on the reduction of utility bills will change. Some businesses will no longer receive energy at a protected price, and the number of those who will have to pay market prices will be extended, Index reports.

According to the government’s announcement, in addition to the general public, around 100,000 micro-enterprises and those who currently purchase energy under the universal service, or at the universal service price will receive energy at a reduced price from August 1, 2022, until the end of the year; in addition, operators of municipal and public rental housing and hostels, including those who do not exceed the annual limit of 4606 kWh for electricity and 1489 m³ for natural gas. The last point means that a family house slightly larger than average can still fit in, but above the ceiling, market prices apply for micro-enterprises.

Under the previous regulation, the companies that received electricity at reduced prices were those with less than 10 employees or an annual net turnover or balance sheet total of less than HUF 4 billion (almost EUR 10 million). This will change on Friday, July 1, 2022.

Low Utility Tariffs May Cost HUF 2,000 Billion in 2022 Budget
Low Utility Tariffs May Cost HUF 2,000 Billion in 2022 Budget

The difference between the "reduced" utility tariffs and the expected market prices of utility products this year, multiplied by the expected residential turnover, could amount to up to 5-7% of the total state budget's balance sheet.Continue reading

From now on, only micro-enterprises with up to 10 employees and a turnover or balance sheet total of less than €2 million (roughly HUF 800 million) will benefit from the reduced electricity and gas tariffs, including those who already received electricity and/or gas under the universal service on June 18, 2022. From Friday, therefore, the number of companies eligible under the current legislation will be significantly reduced, as companies with an annual net turnover of between €2 million and HUF 4 billion will no longer receive gas and electricity at preferential prices.

It is also important that if the service contract is in the name of the company, there is no loophole. After all, the service provider has the right to check eligibility at any time and those who do not meet the criteria of the law will be penalized. If they fail to declare to the supplier by July 1st and are found to be using electricity or gas at the official price without being entitled to do so, they will be charged a unit price equal to twice the average market price for the month, but at least five times the applicable universal service unit price.

Those who have been beneficiaries of universal energy but who, under the new rules, will cease to be eligible companies or legal persons from August 1st, will have to declare by July 1, 2022 that they are no longer eligible.

Source: Index

Featured image: illustration via Pixabay


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