• 4 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 9 minutes Could Venezuela become a net oil importer?
  • 15 minutes Oil prices going Up? NO!
  • 17 mins The Tony Seba report
  • 2 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 6 mins Harley-Davidson "Made in EU"
  • 38 mins Could Venezuela become a net oil importer?
  • 2 hours Erdogan After Erdogan: New Presidential Mandate After Yesterday's Elections
  • 6 hours LNG Shortage on the Way
  • 1 hour The U.S. Will Soon Give North Korea a Timeline of 'Specific Asks
  • 12 hours Kenya Eyes 200+ Oil Wells
  • 11 hours Are Electric Vehicles Really Better For The Environment?
  • 4 hours Sell out now or hold on?
  • 21 hours Saudi Arabia turns to solar
  • 16 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 1 day Oil prices going Up? NO!
  • 3 hours No LNG Pipelines? Let the Trucks Roll In
  • 38 mins China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 12 hours OPEC soap opera daily update
Serving The 2 Billion Unbanked: A New Trillion Dollar Market

Serving The 2 Billion Unbanked: A New Trillion Dollar Market

Fintech, alongside blockchain, has been…

Hungarian Prime Minister Reduces Energy Bills by 20%

In the past few weeks energy prices in the UK have begun to jump by more than 10%, putting pressure on many of the country’s poorest families, and forcing them to choose between food, or heating.

Ed Miliband, leader of the British Labour Party, stole headlines a few weeks ago with his promise to freeze energy bills for 20 months if he is victorious in the 2015 general elections.

Miliband’s bold statement has helped him to steal a lead in the polls, but the Conservatives responded by claiming that such interference in the market is not possible and that in order to reduce energy bills they would have to cut green taxes.

Related article: Miliband’s Energy Price Freeze Lacks Long-Term Strategy

Viktor Orban, the prime minister of Hungary, has begun taking on the energy giants and interfering in the market in order to reduce energy prices, and limit the power of the utilities. He has shown that Miliband’s promise is not too far-fetched, and even offers the Conservative Party an example of how to retake the lead the lead in the polls coming up to the elections in 2015.

Orban, fed up with the profiteering energy companies, introduced a 10% reduction in energy bills in January, with another 11.1% cut to be adopted in November. His government is also in the process of writing up a bill that would ban utility companies from paying dividends to its shareholders, as it aims to dissolve the monopolies and return the companies to the public sector where they will work on a non-profit basis.

He declared that “we must once and for all bring an end to the era where energy providers can ride roughshod over people.”

Related article: Iran's Rouhani May Be Driving Oil Markets Now

Fidesz, the anti-communist, centre-right party of Prime Minister Orban, claims that from 2002-2010 energy prices rose on 15 separate occasions. The Guardian writes that these recent policies have helped to reduce household energy bills and offer some relief to poor families that were having to spend as much as 20% of their household budget on the gas bill alone.

Whilst some have criticised the government’s strong arm approach, it has helped them to mark out a good lead in the opinion polls, with a recent poll suggesting that the governing party was 15% ahead of its nearest rival.

The UK conservative party could retake the lead coming up to the elections if it were willing to make such bold moves, rather than remain committed to their belief in market forces, which have proven themselves ineffective.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News