One of the fundamental operating costs of any business is energy supply, and electricity charges in particular. In Hungary most companies buy their electricity from the universal provider, yet many are not fully aware of the types of electricity tariffs available and their characteristics. This article, “Electricity rates for businesses: a guide to the world of tariffs”, helps you navigate the Hungarian electricity market so that businesses can choose the most favourable and practical solution.
The regulatory framework of electricity supply
The sale of electricity as a universal service in Hungary takes place within a strict legal framework. The Hungarian Energy and Public Utility Regulatory Authority (MEKH) supervises and monitors the activities of suppliers, ensuring that pricing complies with statutory requirements. This regulatory background guarantees that residential and business consumers can access electricity under predictable and fair conditions.
The components of the electricity charge and the factors affecting it
As with every utility charge, the electricity charge is made up of several factors. It essentially has two main components:
- The price of the energy consumed: This charge is payable based on the amount of electricity consumed. The unit price is determined by the purchase price and the supplier's margin, and 27% VAT is also added. The unit price depends heavily on the electricity tariff applied.
- The system usage charge: This is a fixed-price charge that covers the costs of transmitting electricity, maintaining and operating the network, and metering.
The unit price of electricity is influenced by two main factors: the electricity supplier in question and the type of electricity tariff applied. Electricity tariffs, in turn, can take several forms depending on the amount, timing and manner of energy use.
Residential electricity tariffs and their relevance for businesses
A1 tariff: flat-rate pricing
The A1 tariff is the most common; it is single-zone, meaning it provides electricity at a uniform price all day. Although originally aimed at residential consumers, similar fixed-price tariffs also exist at the corporate level; they offer simplicity but are rarely the most favourable for high-consumption companies. The consumption bands introduced as part of the utility price caps, such as the residential market price above 2,523 kWh/year (currently HUF 70.104/kWh), highlight that higher consumption can cost more.
A2 tariff: the advantage of two time zones
The A2 tariff already offers two pricing schemes: for peak and off-peak periods. It can be advantageous for companies that can schedule a significant part of their consumption into night-time or weekend periods, when electricity is cheaper. However, the rising prices above the consumption limit seen in the residential example are a warning that consumption habits must be carefully weighed in the case of corporate tariffs too.
B tariff (controlled electricity): ideal for heat storage and special consumers
The B tariff, better known as controlled electricity, is typically worth choosing for businesses that have equipment which is permanently wired, has a separate meter and is capable of heat storage. Examples include industrial water heaters, electric heating systems or special machinery. The B tariff allows electricity to be drawn at a reduced rate during the day in specified periods (not only at night), which can result in significant savings given the right consumption profile. The low unit price seen in the residential example (approx. HUF 22.6–23.5/kWh) holds great potential for corporate use as well.
Geo tariff and H tariff: tailored to special needs
The Geo and H tariffs are special categories designed primarily to power heat-pump systems and equipment related to renewable energy sources. The Geo tariff is available only to a limited extent and no new contracts can be concluded for it, while the H tariff is seasonal (from 15 October to 15 April) but offers a reduced price all day. These tariffs can be requested only for certain types of equipment and under special conditions, but they can be an excellent alternative for businesses that use renewable energy sources.
How to choose a corporate electricity tariff?
For businesses, the most important thing is to accurately assess their current energy consumption habits. It is worth tracking when and how much electricity they use, what power-rated machines operate, and in which periods these place the greatest load on the network. Consultants, like myself, can help in this process by analysing consumption data and recommending the most optimal tariff. It is also important to pay attention to the contract terms, the commitment period and the billing cycles.
Frequently Asked Questions (FAQ)
Question: Which is the most common type of electricity tariff in Hungary?
Answer: The A1 tariff is the most common; it offers a uniform price all day.
Question: What types of companies can benefit from the B tariff (controlled electricity)?
Answer: Companies that use equipment which is permanently wired, has a separate meter, and is capable of heat storage or operates in special periods.
Question: What factors determine the unit price of the electricity charge?
Answer: The unit price depends on the electricity supplier, the tariff applied, the amount of energy consumed and the time of use.
Question: What is the advantage of dual-zone tariffs (e.g. A2)?
Answer: Dual-zone tariffs can be more favourably priced if a significant part of consumption falls outside peak hours, for example into night-time or weekend periods.
Question: Why is it important to assess consumption habits when selecting a corporate electricity tariff?
Answer: Assessing consumption habits helps select the most favourable and practical tariff, maximising savings and avoiding unnecessary costs.
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- Name: László Bognár
- Position: Technical director
- Phone number: +36 30 833 9843
- Email: info[@]aramgazar[.]hu
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