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HUNGARY
Hungarian Energy Office (HEO)



country map



Key Statistics (2010)

Population

10.02 mln

GDP/Capita

,280 (based on PPP) 

Generation

Fossil fuel: 48.46%
Nuclear: 42.96%
Hydro: 0.63%
Renewables: 7.9%

Electricity Market Size

41.42 TWh/year

Surplus Installed Capacity over Demand

2.26 TW

Net Electricity Importer

(5.5 TWh); Slovakia main trading partner

Natural Gas Imported

329,6 PJ (80 %)

Natural Gas Consumed

11.115 Bcm in 2009 and 11.898 Bcm in 2010

Natural Gas Storage Capacity

4.23 Bcm commercial in 2009, 4.93 Bcm commercial + 1.2 Bcm strategic in 2010

Natural Gas Domestic Production

84,8 PJ

Summary
  • Established in 1994, currently there are 112 staff members
  • Péter Horváth was appointed President of HEO in September 2010. The Prime Minister upon proposal of the Minister of Economy appoints the President and the Vice-President for a 6 year term.
  • HEO regulates and supervises energy activities of electricity and gas companies, heat production of electric power stations and CHP companies over 0.5 MW and protects customer interests.
  • Fees from licensees regulated by the joint decree of the Minister of Economy and Transport and the Minister of Finance cover the HEO’s operating costs.
  • Industry and Market Structure

    Electricity

    • 14 large generation companies; 10 owned by private investors (GDF Suez, RWE, AES, ATEL, EdF, EON)
    • 103 wholesale companies from which 31 are retailers as well
    • 4 universal supplier companies owned by RWE, EON, EdF
    • 6 regional distribution companies owned by RWE, EON, EdF
    • Liberalized market model with universal supplier services
    • Generation prices under obligatory off-take regime (RES + CHP for district heat until 1st July), general system usage charges and universal supplier tariffs are regulated
    • 1 TSO (indirectly State-owned)
    • Member of ENTSO-E (European Network of Transmission System Operators for Electricity)

    Natural Gas

    • Market structure: 1 transmission company, 1 wholesaler, 1 storage company, 1 TSO, 10 distribution companies /public utility supply companies, 3 LPG supplier, 14 natural gas traders, cross-border traders
    • Wholesale and end-user prices are regulated
    • 40 % of natural gas market was opened on January 1st, 2004. , beyond the household customers all customers have the possibility to enter the market, 8,1% of non-household customers entered the market
    Current Energy Issues
    • 66% of electricity market is open from July 1 2004, and 65,4% of the natural gas market is open from January 1, 2004 (in legal terms)
    • Regulated third party access, cross border trade, stranded costs, market power monitoring, public service obligation
    • Regulated prices are prepared by the Hungarian Energy Office and approved or rejected by the Minister of Economy and Transport; new gas price regulation has been effective since January 18, 2006 for 4 years, the four-year electricity price regulation period started at the beginning of 2005
    • Harmonization of the energy policy according to the European Union Directives.
    Contact

    II. János Pál pápa tér 7, H-1081 Budapest, Hungary
    Tel./Fax: (36 1) 459 7777
    Internet: www.eh.gov.hu; http://www.erranet.org/AboutUs/Members/Profiles/Hungary

     

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