State monopoly on the Hungarian household gas market

The last private gas provider for residential consumers on the Hungarian market, Tigáz has given up its household gas provision business. The move follows similar steps recently by three other large providers due to heavy losses following government decrees to cut the cost of household utilities. The withdrawl of Tigáz means a monopoly by the state-run provider.

Gas for Tigáz consumers will
be provided by Fõgáz, which was taken entirely into state hands with the
government purchasing half the shares from Germany’s RWE corporation in early
2014. Following the government of Viktor Orbán prohibiting gas providers from
including certain expenses in the price of household gas, large companies like
GDF Suez of France, E.ON of Germany and Magyar Telekom all accumulated great
losses and gave back their licences.

Most opposition parties in Hungary
had long warned that the government’s moves to artificially subdue utility
prices would distort market competition and result in a state monopoly that
will eventually drive prices up due to the lack of competition.