ABSTRACT
In Hungary, energy poverty affects a large share of the population and energy prices have traditionally been high on the political agenda. The present chapter analyses the various factors that have contributed to the Hungarian situation in terms of energy poverty and reviews the work conducted on the topic over the past decade. Several factors explain the persistently high levels of energy poverty in the country. First, income inequalities have significantly increased since post-communist transition. Second, in terms of housing, Hungary displays high levels of home ownership and at the same time very high levels of housing deprivation. Third, some population groups, like the Roma, are massively and severely affected by energy poverty. Fourth, the energy supply system in Hungary has proven unable to guarantee access to affordable energy to all households. Many households are still obliged to heat their homes with solid fuels in a context where energy prices increased sharply between 1990 and 2012. The policy response to increasing energy prices, which consisted in imposing price cuts on electricity, has lowered the electricity prices for consumers. Still, energy poverty remains at high levels due to poor targeting of welfare policies and insufficient effort to refurbish the housing stock.
