Act 41 on Gas Supply (1994)
Act 47 on the Generation, Transmission and Supply of Electricity (1994)
Government Resolution 1122 (1996)
Act 18 on District Heating (1998) (only available in Hungarian) Act 86 of 2007 (VET) on Electricity including Governmental Decree (enforcement) 273/2007 (October 23) and Associated legislation Act 42 on Natural Gas Supply (2003)
Act 88 on Energy Tax (2003)
Act 89 on Fees relating the Burden on the Environment (2003)
Act 18 on District Heating (2005)
Act 86 on Electric Energy (2007)
Legally established
July 1994
Operational
1994
Board
Composition
1 President, 1 Vice President.
Appointment
by the Prime Minister at the proposal of the Minister of Economy and Transport
Term duration
6 years
Term characteristics
indefinitely renewable
Term revocation
by the Prime Minister at the proposal of the Minister of Economy and Transport, in the event of:
permanent unfitness for filling position;
criminal indictment
failure to terminate a conflict of interest with office within three months
sets investment plans based on recommendations by the system operator
can organise tenders in the case of forecasted long-term supply shortage
determines and certifies sources and quantity of mandatory RES-E feed-in and advises minister of economy on feed-in prices for RES-E.
certifies plant capacity with reference to green certificates scheme
Wholesale/Trading
issues and amends trading licenses and natural gas public utility wholesale trading licences
Balancing
approves the tariff methodology for balancing and ancillary services proposed by licensees
determines procedures, tariff methodologies and levels
Transmission
issues transmission, system operation and natural gas storage licences
can declare elements of the network as “public”, which guarantees cost recovery for the facilities
participates in the preparation of the tariff methodology and commercial rules to be submitted to approval by the Minister of economy and transport
approves technical rules: business conduct rules and electricity supply codes (electricity) and operational and commercial code (gas)
sets connection costs
prepares the development directives of the transmission and distributions networks and underground storage facilities (natural gas) and approves the grid development plan (electricity)
invites bids for consumer side measures and for network development (new pipelines and gas storage facilities as well as electricity grid expansions).
Distribution
can declare elements of the network as “public”, which guarantees cost recovery for the facilities
issues and amends distribution licenses
approves the operational and business rules (distribution codes)
participates in the preparation of the tariff methodology and commercial rules to be submitted to approval by the minister of economy and transport
determines minimum levels of quality
may launch a tender for development of distribution networks
Supply
issues and amends public utility supply licences
issues and amends eligible consumer licenses
prepares the rules for fixing the administrative prices and fees applied in the natural gas supply
sets minimum quality standards
Cross-sectoral
issues non-binding guidelines aimed at clarifying unbundling rules (electricity)
approves compliance programs and reviews
Monitoring Powers
licensees
transmission tariffs
connections and repairs
service quality
energy demand
system balance of demand and supply in the medium-term
competition
account unbundling requirements
Settlement powers
TPA disputes between gas licensees
consumer complaints, in particular violations of quality standards
Enforcement Powers
issues public letters of condemn on companies’ chief executives
publishes benchmark reports on performance by network and public supply companies
sets reduced rate of return and order tariff reductions to consumer when quality of supply standards are not met
fines against sector participants up to 400,000 EUR
revokes licences
Financing
Through levy on licensees and administrative fees
Budget size is subject to Government approval and level of levies is set by joint decree decree of the Minister of Economy and Transport and the Minister of Finance, but allocation is left to regulator
