As temperatures plunged as low as -15°C (5°F) and up to 20 cm (almost eight inches) of snow blanketed southern regions, Hungary’s energy systems faced their most significant test in years. The Hungarian Water Utilities Association issued warnings about frost damage to water meters and pipes, urging property owners to winterize their systems and drain water from unoccupied properties.
Despite brief power outages affecting 475 consumption points on Jan. 5, mainly due to falling branches and trees, the grid remained stable overall, according to Lieutenant Colonel Dániel Mukics, spokesperson for the National Disaster Management Directorate. The winter weather contributed to a near-tripling of traffic accidents over the following days, including one fatality when a cyclist not wearing a helmet fell and struck his head.
Electricity demand peaked at a record 8,000 megawatts on Jan. 10, although, notably, experts said the system performed well under the strain. However, the extreme cold exposed vulnerabilities in residential heating systems, leading to house fires nearly doubling from a daily average of 25 to 49. Mukics attributed the increase partly to aging and overloaded electrical systems, as residents in these instances typically ran multiple heating appliances simultaneously.
Despite the warnings, water supply issues affected 1,531 households across 13 localities on Jan. 12, though the number had dropped to 180 by the following day. Educational disruptions were limited: three primary schools suspended classes due to heating or sewage issues, while 25 high schools declared snow days and 29 shifted to online learning.
Recognizing the financial burden on households, state-owned energy company MVM suspended disconnections of residential electricity and gas services through to the end of January at the Ministry of Energy Affairs’ request. State Secretary Gábor Czepek said the moratorium on cutoffs for customers with payment arrears would ensure that “everyone comes home to safe and warm homes from the cold.”
The measure came as gas consumption surged nearly 30% above a typical January, reaching almost 200 million cubic meters. State Secretary Balázs Hidvéghi of the Prime Minister’s Office described the situation as a “force majeure,” prompting Prime Minister Viktor Orbán to announce on Jan. 21 that the government would freeze household utility bills for the month and cover additional heating costs.
“We need to crank up the regulated utilities price scheme and we will,” Orbán said, describing it as the cabinet’s top priority.
The relief will apply to 3.3 million households that use gas for heating and 600,000 households that use district heating. Hidvéghi said energy companies’ contributions were also under consideration, citing the precedent of sectoral windfall profit taxes.
Officials highlighted Hungary’s relatively low utility costs, noting that average annual household bills of HUF 250,000 (EUR 653) compare extremely favorably with HUF 650,000 in Slovakia, HUF 600,000 in Romania, HUF 900,000 in Poland, and HUF 1 mln in the Czech Republic. Orbán emphasized the importance of Hungary’s regulated energy pricing system, which, he said, depended on continued access to cheap Russian oil and gas.
The announcement drew criticism from opposition Tisza Party chairman Péter Magyar, who called the freeze a “delayed and insufficient” response that amounts to “a Band-Aid,” ignoring hundreds of thousands of Hungary’s poorest residents living in badly insulated homes with outdated heating systems. Magyar questioned Orbán’s claim that the government would actually absorb the costs, asking sarcastically whether ministers would personally cover the expenses.
Head of the Prime Minister’s Office Gergely Gulyás said a working group led by Minister of Energy Affairs Csaba Lantos would finalize compensation details by Jan. 28, the day this issue of the Budapest Business Journal went to print.
Separately, Budapest Mayor Gergely Karácsony announced the capital had expanded its utility subsidy program from Jan. 1, emphasizing that “this is especially important at times when many find it difficult to pay the costs increased because of the cold.”
Orbán sought to reassure the public about energy security, stating that Hungary’s gas reserves exceed 40% of annual consumption, well above Western European levels proportionally. He noted that Hungary would likely use only a small portion of those reserves, as gas supplies have remained uninterrupted throughout the cold snap.
The government doubled support for firewood heating this winter, with local governments managing distribution of state-provided wood amid ongoing sleet alerts in southern regions. Hidvéghi emphasized that firewood for vulnerable people would be available “practically without limit” as long as the cold weather persists.
The heavy snowfall briefly disrupted rail shipments of feedstock and products between Hungarian oil and gas company MOL’s Bratislava refinery and Hungarian distribution bases in mid-January. Despite the delays, MOL said, “The situation is under control,” and assured customers that fuel supplies remained secure and that retail deliveries were unaffected.
Amid the weather crisis, MOL said it had made significant progress toward enhancing regional energy security through expansion. The Hungarian oil major signed a binding heads-of-agreement on Jan. 20 to acquire a 56.15% stake in Serbian energy firm NIS from Russia’s Gazprom Neft, with a final purchase agreement expected by March 31.
The deal, which requires approval from the U.S. Office of Foreign Assets Control, would integrate MOL’s refineries near Budapest and in Bratislava with NIS’s Pančevo facility. Foreign Minister Péter Szijjártó called this integration “an unprecedented opportunity for regional energy security and pricing.”
Serbian Minister of Mining and Energy Dubravka Đedović Handanović confirmed the agreement and noted that Serbia could raise its stake in NIS by 5%, giving it over one-third ownership. She added that UAE partners are expected to join the deal and that negotiations must be concluded by March 24. MOL has pledged to maintain operations and output at the Pančevo refinery.
This article was first published in the Budapest Business Journal print issue of January 30, 2026.
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