Energy Statistics Poland€¦ · Due to the sparse energy and raw material resources, Hungary is forced to import most of these materials to satisfy the demands of the industry. Nearly

August, 2014

MARKET

INTELLIGENCE

www.energymarketprice.com

NON-COMMODITY REPORT

Market Intelligence Group

HUNGARY

FREE SAMPLENB: Data is for sample

purposes and may not be

up to date

Contents analyzed are

equal for all countries

United Kingdom Summary August, 2014

www.energymarketprice.comMarket Intelligence Group

SUMMARY

This document may not be reproduced or transmitted

in any form or by any means, electronic or mechanical, for any

purpose, without our prior written permission.

Energy market profile 4 Liberalization 5-6 Regulatory changes 7 Legislation 8-9 Regulatory institution MEKH 10 Key indicators 11

Natural Gas Industry

Feed-in Tariffs

October 2015

Energy Overview

Electricity Market

NON-COMMODITY REPORT Hungary

Transaction scheme 13 Power plants 14-15 Main actors 16 Transmission network 17-18 MVM Energy Group 19 Transmission operator 20 Power System Actual Data 21 Distribution 22-23 Exchange Rate 24 Wholesale market 25 Wholesale prices 26-27 System Use charges 28-30 System Use prices 31-32 System Use changes 33-36 Proportions of specific distribution charges 37 Distribution charges 38-44 Retail market 45 Prices for medium industrials 46 Energy taxes 47 Tax regulation 48

Natural gas market overview 50-51 Legislation 52-53 Structural changes 54 Wholesale market 55 Liberalization 56 Main actors 57, 60 Main distributors and universal service

operators 58-59 Natural gas transmission operators 60 FGSZ infrastructure 61 FGSZ high pressure pipeline systems 62 Transmission 63-65 Transmission fees 66-69 Hungarian gas transit 70-71 Main gas distributors 72 Tigaz charges 73-79 Retail market 81 Prices for medium industrials 82 Energy taxes 83

Forecasts 85-87 Feed-in tariffs 88-93 KAT spot 94



ENERGY MARKET

ENERGY MARKET


October 2015



ENERGY MARKET

ENERGY MARKET PROFILE


50% of energy consumption is dependent on imported energy

sources

The electricity market was opened on 1 January 2003.

Due to the sparse energy and raw material resources, Hungary is forced to import most of these materials to satisfy the demands of the industry.

Nearly 50% of energy consumption is dependent on imported energy sources.

Gas and oil are transported through pipelines from Russia forming 72% of the energy structure, while nuclear power produced by the nuclear power station of Paks accounts for 12%.

The energy policy aims to reliable, efficient and environment friendly energy supply. The two principal orientations of the energy policy are the implementation of an energy efficiency policy and the restructuring of the energy supply (regression of the coal sector, maintenance of the choices in favor of natural gas and nuclear power). From this last point of view, Hungary testifies to a marked will to diversify its suppliers for hydrocarbons.

The electricity market was opened on 1 January 2003.

Electricity market data:

15 large power plants (installed capacity>50MW) with 8 581,6 MW and 381 power plant units of 281 companies in different industry sectors with 1 512,2 MW (data refer to 2012)164 trading companies (71 are only wholesalers)4 universal supplier companies owned by RWE, EON, EdF6 main regional distribution companies owned by RWE, EON, EdFLiberalized market model with universal supplier servicesGeneration prices under obligatory off-take regime (RES), general system usage charges and universal supplier tariffs are regulated1 TSO (indirectly state-owned)Member of ENTSO-E (European Network of Transmission System Operators for Electricity)

October 2015



ENERGY MARKET

LIBERALIZATION (1)


Liberalization of the electricity market – from 1 January 2003

Liberalization of the natural gas market - from 1 January 2004

From 1 July 2007 retail customers can also purchase

electricity and natural gas from generators or traders.

Each sector of the predetermined line energy markets was fully regulated from 1994 up to the end of 2002. Liberalization of the electricity market started with effect of 1 January 2003 and that of the natural gas market with effect of 1 January 2004 opening these markets little by little.

Originally big industrial customers, and from July 2004 any non-household customer could step out onto the competitive electric power market.

From 1 July 2007 retail customers can also purchase electricity and natural gas from generators or traders.

Status of electricity market liberalization: FULLRegulatory institution: Hungarian Energy and Public Utility Regulatory Authority

Eligible consumersSince July 2007 every consumer, including households, is an eligible consumer.Eligible consumers are no longer entitled to revert to the public utility system.

Electricity tradersOn the basis of HEO licenses traders can purchase (from generators, other traders of the excess capacity from public wholesaler) and sell electricity (to eligible consumers, other traders or to public wholesaler)

Main electricity traders, from more than 30 registered:Arpad Energia Tanacsado Kft Energy Capital KftAtel Energia Tanacsado Kft Entrade Hungary KftEnker-Team Kft MVM Partner RtEFT Budapest Rt System Consulting Rt

October 2015



ENERGY MARKET

LIBERALIZATION (2)


The Regulatory institution Hungarian Energy and Public

Utility Regulatory Authority issues licenses

Third-party accessThird party access is granted to the extent it answers the demand of the system users.Network license holders assist third parties in accessing the network.

System operation licenseeMagyar Villamosenergia-ipari Rendszerirányító Rt. http://www.mavir.hu

Licenses are issued by the Regulatory institution Hungarian Energy and Public Utility Regulatory Authority for:

Establishment and operations on power plants with a capacity of over 0,5 MWDistribution of electricitySystem operationsTrading in electricityCross-border power tradeOperating electricity exchange

There is a fast track procedure of obtaining a license for small power plants under 50 MW

UnbundlingLegislation provides for the unbundling of accounts in the vertically or horizontally integrated assets.

PricingTrading between the distribution companies and public utility consumer is subject of pricing by the Ministry of Economy and Transport.The price of power on the liberalized market is not controlled by the state.

October 2015

http://www.mavir.hu/



ENERGY MARKET

LEGISLATION (1)


Act 22 of 2013 on the Hungarian Energy and Public Utility Regulatory Authority

Act LXXXVI of 2007 on Electricity (consolidated with Government Decree No 273/2007 (X. 19.) on the implementation of certain provisions of the Electricity Act)Electricity Act LXXXVI of 2007 english

Act LXXXVI. of 2007 on Electricityhttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=109609.580998

Government Decree No 273/2007 (X.19.) on the implementation of certain provisions of the Act LXXXVI of 2007 on Electricity [consolidated with Act LXXXVI of 2007 on electricity]http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=111172.337266

Government Decree No 389/2007 (XII. 23.) on the feed-in obligation and feed-in tariff of electricity produced from renewable energy resources or from waste and electricity generated in co-generation facilitieshttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=111626.584109

Government Decree No 382/2007 (XII. 23.) on building construction licensing in the electricity sectorhttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=111606.562798

Decree No 76/2011 (XII. 21.) NFM on the financial and technical conditions of the access to the public utility systemhttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=143072.579187

Decree No 64/2011 (XI. 30.) NFM on the rules applicable to setting and implementing electricity system use chargeshttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=141919.584225

October 2015

http://www.mekh.hu/gcpdocs/52/Electricity Act LXXXVI_2007_ENG.pdfhttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=109609.580998http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=111172.337266http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=111626.584109http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=111606.562798http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=143072.579187http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=141919.584225



ENERGY MARKET

LEGISLATION (2)


…

Decree No 4/2011 (I. 31.) NFM on the pricing of universal supply of electricityhttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=135113.584216

Decree No 31/2010 (IV. 15.) KHEM on the visual appearance of billing documents applied by the universal service provider of electricity and natural gashttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=129727.185023

Decree No 33/2009 (VI. 30.) KHEM on the conditions for the announcement of tender to establish wind power capacities and minimum requirements in such tenders as well as on the rules of procedure in tenderinghttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=123051.174699

Decree No 17/2008 (VIII. 1.) KHEM on the range of and charges for the services to be provided on the basis of the consumer by the electricity distribution network licensees and the universal service provider prior to a special feehttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=115670.584142

Decree No 116/2007 (XII. 29.) GKM on the electricity purchase discounts applicable in relation to present or past employment in the electricity sectorhttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=110103.155144

Decree No 110/2007 (XII. 23.) GKM on the methodology of fixing the amount of electricity and useful heat co-generated by high efficiency effective thermal energyhttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=110005.585637

Decree No 109/2007 (XII. 23.) GKM on the distribution of electricity subject to feed-in obligation to the transmission system operator and on the methodology of determining prices to be applied in the course of distributionhttp://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=109990.565337

October 2015

http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=135113.584216http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=129727.185023http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=123051.174699http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=115670.584142http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=110103.155144http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=110005.585637http://jogszabalykereso.mhk.hu/cgi_bin/njt_doc.cgi?docid=109990.565337



ENERGY MARKET

REGULATORY CHANGES


Electricity can be procured by users and traders and sold by

generators under the conditions of free market.

1st of July 2011 - co-generation producers were excluded from

the FIO scheme



ENERGY MARKET

ENERGY MARKET REGULATOR


1994 - the Hungarian Energy and Public Utility Regulatory

Authority was founded

Regulatory institutionHungarian Energy and Public Utility Regulatory Authority http://www.mekh.hu/en/

Since its founding in 1994 the Hungarian Energy and Public Utility Regulatory Authority (until 4 April 2013 the Hungarian Energy Office) has become a regulator broadly recognized all over Europe and beyond its borders. It has an essential role in the Hungarian energy market. It regulates and supervises energy activities of electricity and gas firms, as well as water utility (from the 1st July, 2012), district heating and supply and protects customer interests.

Its strategic goal is to improve the professional credit and reputation of the Hungarian Energy and Public Utility Regulatory Authority in the future, to face with the challenges arising from its strengthening position and thus to be a respected regulatory authority.

The role of the Hungarian Energy and Public Utility Regulatory Authority has been continuously changing along with the development of the market structures and the operating models as well as with the European legislation.

The most important responsibilities are:• to issue the licenses of energy companies required for performing activities which are topic to approval by law• to consent the standard service accords and the internal regulations adopted by the certified operators• to approve the grid codes• to elaborate the network access fees and network-related connection charges• to make preliminary offers for the regulations as regards the pricing mechanisms of universal services• to approve the network expansion plan prepared by the transmission system operator• to work out complaints lodged against authorized operators (shared competence with the Authority for Consumer Protection)

Fees collected from licensees (app. 11,5M EUR per year).

October 2015

http://www.mekh.hu/en/



ENERGY MARKET

KEY INDICATORS


Electricity GasNumber of companies representing at least 95% of net power generation

32Number of entities bringing natural gas into country

20

Number of main power generation companies 4 Number of main gas entities 4

Market share of the largest power generation company

47.10%Market share of the largest entity bringing natural gas

32.91%

Number of electricity retailers 43Number of retailers selling natural gas to final customers

30

Number of main electricity retailers 4 Number of main natural gas retailers 6

Switching rates (households) 1.60% Switching rate for gas (households) 1.50%

Regulated prices for households - electricity Yes Regulated prices for households - gas Yes

Regulated prices for non-households - electricity Yes Regulated prices for non-households - gas Yes

HHI in power-generation market 2296.9 HHI in gas supply market 1494.3HHI in electricity retail market 1584.4 HHI in gas retail market 1245.9

Electricity market value (billion euro) 2758 Gas market value (billion euro) 2327

Installed generation capacity (MW) 9551Peak demand (2012, MW) 6016Number of smart meters installed N/ASource: http://ec.europa.eu/

October 2015



ELECTRICITY MARKET

ELECTRICITY MARKET


October 2015



POWER MARKET TRANSACTION SCHEME

NON-COMMODITY REPORT HungaryELECTRICITY MARKETOctober 2015



MAIN POWER PLANTS

NON-COMMODITY REPORT HungaryELECTRICITY MARKET

Large power plants

Name of licensee Seat of licensee Capacity (MW)

AES Borsodi Energetikai Kft. http://www.aes.hu 3704 Kazincbarcika, Ipari út 7. 136.9

AES Borsodi Energetikai Kft. http://www.aes.hu 3704 Kazincbarcika, Ipari út 7. 200Alpiq Csepel Kft. http://www.alpiq.hu 1085 Budapest, Kálvin tér 12. ép. 410

Bakonyi Erőmű Zrt. http://www.bakonyi.hu 8401 Ajka, Gyártelep Pf.134 101.6

Budapesti Erőmű Zrt. http://www.bert.hu 1117 Budapest, Budafoki út 52. 410

BVMT Bakonyi Villamos Művek Termelő Zrt. 8400 Ajka, Gyártelep hrsz 1961/1. 116Debreceni Kombinált Ciklusú Erőmű Kft. 4030 Debrecen, Mikepércsi út 1 95

Dunamenti Erőmű Zrt. 2440 Százhalombatta, Erőmű u.2. 1,069

E.ON Erőművek Kft. 1051 Budapest, Széchenyi I. tér 7-8. 433

ISD POWER Energiatermelő és Szolgáltató Kft. 2400 Dunaújváros, Vasmű tér 1-3. 69

Mátrai Erőmű Zrt. http://www.mert.hu 3272 Visonta, Erőmű u. 11. 950

MVM GTER Zrt. Litéri GT http://www.gter.hu 1011 Budapest, Vám u. 5-7 120

MVM GTER Zrt. Lőrinci GT http://www.gter.hu 1011 Budapest, Vám u. 5-7 170

MVM GTER Zrt. Sajószögedi GT 1011 Budapest, Vám u. 5-7 120

MVM Paksi Atomerőmű Zrt. http://www.npp.hu 7031 Paks, Pf.: 71. Hrsz.: 8803 2000

Tisza Erőmű Kft 3580 Tiszaújváros, Verebély L. u. 2 900

Vértesi Erőmű Zrt. http://www.vert.hu 2841 Oroszlány Külterület Pf. 23. 240

Source: www.mekh.hu

October 2015

http://www.aes.hu/http://www.aes.hu/http://www.alpiq.hu/http:///http://www.bakonyi.hu/http://www.aes.hu/http://www.aes.hu/http://www.gter.hu/http://www.gter.hu/http://www.aes.hu/http://www.aes.hu/



MAIN POWER PLANTS (2013)


Source: www.mavir.hu

October 2015



MAIN ACTORS


MAVIR Hungarian Independent Transmission Operator

Name of Licensee Adress of licensee Number of

license/resolutionDate of issue Effective until

MAVIR Magyar Villamosenergia-ipari Átviteli Rendszerirányító Zrt. 1031 Budapest, Anikó u. 4. 715/2012 8/13/2012 8/13/2037

Universal service Providers

Name of LicenseeAdress of licensee

Number of license/resolution

Date of issueEffective until

E.ON Energiaszolgáltató Kft. 1051 Budapest, Széchenyi István tér 7-8. 70/2008 1/1/2008 1/1/2018EDF DÉMÁSZ Zrt. 6720 Szeged, Klauzál tér 9. 71/2008 1/1/2008 1/1/2018ELMŰ Nyrt. 1132 Budapest, Váci út 72-74. 73/2008 1/1/2008 1/1/2018ÉMÁSZ Nyrt. 3525 Miskolc, Dózsa György út. 13. 72/2008 1/1/2008 1/1/2018

Distributors + Private Line Providers

Name of Licensee Adress of licensee Number of

license/resolutionDate of issue Effective until

ÁTI-Sziget Ipari Szolgáltató Központ Kft. 2313 Szigetszentmiklós, Gyártelep 96/2008 1/31/2008 IndefiniteE.ON Dél-dunántúli Áramhálózati Zrt. 7626 Pécs, Rákóczi út 73/b. 26/2003 1/1/2003 1/1/2028E.ON Észak-dunántúli Áramhálózati Zrt. 9027 Győr, Kandó K. u. 13. 29/2003 1/1/2003 1/1/2028E.ON Tiszántúli Áramhálózati Zrt. http://www.eon-tiszantul.com

4024 Debrecen, Kossuth u. 41. 31/2003 1/1/2003 1/1/2028

EDF DÉMÁSZ Hálózati Elosztó Kft. http://www.demasz.hu

6720 Szeged, Klauzál tér 1. 793/2006 12/27/2006 1/1/2032

ELMŰ Hálózati Kft. http://www.elmu.hu 1132 Budapest, Váci út 72-74. 805/2006 12/28/2006 1/1/2032ÉMÁSZ Hálózati Kft. http://www.edasz.hu 3525 Miskolc, Dózsa György u. 13. 808/2006 12/28/2006 1/1/2032Ganz Szolgáltató Zrt. 1089 Budapest, Vajda Péter utca 12 583/2008 4/28/2008 IndefiniteTisza Joule Szolgáltató és Kereskedelmi Kft. 5435 Martfű, Gesztenye sor 1. 898/2008 10/30/2008 Indefinite

Source: www.mekh.hu

October 2015

http://www.eon-tiszantul.com/http://www.eon-deldunantul.com/http://www.eon-deldunantul.com/http://www.eon-deldunantul.com/



TRANSMISSION


Hungarian Electricity Board (MVM)http://www.mvm.hu/

Former public monopolyAlso owner of the only nuclear power plantPublic company with commercial activities

Electricity gridTransmission grid is composed of a network of 750 kV, 400 kV, 220 kV and 120 kV lines

UCTEThrough UCTE, the country is linked to Austria, Slovakia, Croatia and Slovenia

Lines of 400 kV link Hungary to Romania and Serbia

System opration licenseeMAVIR - Magyar Villamosenergia-ipari Rendszerirányító Rt. http://www.mavir.hu

Source: www.geni.org

October 2015

http://www.mvm.hu/http://www.mavir.hu/

MVM (Magyar Villamos Művek Zrt.) Hungarian Electricity Ltd. - http://www.mvm.hu/

As the most important national energy group, MVM contributes to providing safe supply of electricity and gas to the country and governmental info communication via its power plants, transmission and telecommunications networks, trading companies and energy exchanges.



MVM ENERGY GROUP


Source: www.mvm.hu

October 2015

http://www.mvm.hu/



TRANSMISSION NETWORK (31 December 2013)


Source: www.mavir.hu

October 2015



TRANSMISSION OPERATOR


MAVIRwww.mavir.hu

MAVIR Magyar Villamosenergia-ipari Átviteli Rendszerirányító Zártkörűen Működő Részvénytársaság [MAVIR Hungarian Transmission System Operator Company Ltd.] is a young organization of great traditions and vast experience. Before the establishment of MAVIR, Országos Villamos Teherelosztó [the National Power Dispatch Centre] had been performing the technical responsibilities of system operation as of November 1949.

Today MAVIR has the following tasks:

provides for the trustworthy, efficient and secure operation of the Hungarian Power System, counting the necessary reserve capacities of generation and transmission;

controls and develops the assets of the transmission system, performs any restoration, maintenance and enlargement works needed for a accurate and reliable supply;

ensures the uninterrupted operation and further expansion of the electricity market and of the balancing group system sustaining the market, and ensures access on equal terms for system users;

synchronizes the operation of the Hungarian Power System with the bordering systems; manages international professional cooperation activities; prepares the Network Development Strategy and presents offers for the development of the

generation pool.

MAVIR participates in the work of various international organizations and forums. The foremost ones are:1. ENTSO-E - European Network of Transmission System Operators for Electricity2. CEE (Cooperation of 8 Transmission System Operators in the CEE region)3. SEE (Cooperation of Transmission System Operators in the SEE region)4. TSC – TSO System Security Cooperation5. EURELECTRIC6. CIGRE

October 2015

http://www.mavir.hu/



HUNGARIAN POWER SYSTEM ACTUAL DATA


Source: http://www.mavir.hu/web/mavir-en/hungarian-power-system-actual-data

October 2015



DISTRIBUTION


RWE Plus AG and EnBW AG are main investors in the biggest

distribution company, Elmu

ELECTRICITY MARKET

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

E.ON

Dedasz

E.ON

Edasz

E.ON Titasz Demasz Elmu Emasz

Energy provided to public consumers, in GWh/year

E.ON is the main investor in the three companies providing 48% of the electricity to public consumers.

RWE Plus AG and EnBW AG are main investors in the biggest distribution company, Elmu, which is providing electricity for Budapest area. The two RWE EnBW companies account for 40% of the distributed electricity.

Source: Hungarian Energy Office

Energy provided to public consumers, in GWh/year

October 2015



DISTRIBUTION


1992 Unbundling of the former Hungarian Power Works Trust started.First independent power plants and distribution companies

1994 Establishment of the Hungarian Energy Office – main regulatory body in electricity sector.

2001 Electricity Act establishes the current business model in the Hungarian market.

2003 Electricity Act enters into force and makes a clear distinction between the public utility sector and the liberalized market

2005 From July 1, Hungarian market is liberalized, as every consumer excepthousehold becomes eligibleThe public utility sector is still preserved, and every consumer has the option to revert to a public utility consumer status

2007 From July 1, every household consumer is an eligible consumerElectricity market is fully liberalized

October 2015



EXCHANGE RATE




WHOLESALE MARKET


The Hungarian TSO (átviteli rendszerirányító) is MAVIR ZRt.

The distribution systems are operated by six regional DSOs.

September 2012, the Czech-Slovak-Hungarian market

coupling became operational

ELECTRICITY MARKET

An important step in the gradual liberalisation of the Hungarian electricity market was the implementation of the Second Electricity Directive by Act LXXXVI of 2007 on electricity (a villamos energiáról szóló törvény – the Electricity Act 2007) and several pieces of secondary legislation.

The Hungarian TSO (átviteli rendszerirányító) is MAVIR ZRt. The TSO is a fully owned subsidiary of MVM Zrt., a state-owned vertically integrated undertaking. The TSO operates the grid and is also the operator of the balancing market and the auxiliary system services market.

The distribution systems are operated by six regional DSOs (elosztó hálózati engedélyes), the majority of them subsidiaries of the vertically integrated undertaking E.ON.

The production is dominated by MVM Zrt. (Paksi Atomerőmű Zrt.), followed by GDF SUEZ (Dunamenti Erőmű Zrt.), AES (AES Borsodi Energetikai Kft., AES-Tisza Erőmű Kft.), RWE (Mátrai Erőmű Zrt.), Alpiq (Alpiq Csepeli Erőmű Kft.) and EDF (Budapesti Erőmű ZRt.).

Net imports have been growing steadily reaching 19.95% of gross demand in 2012.

Hungary is also an important transit country connecting markets between the Balkans and Central Europe. Imports come from Slovakia, Austria and Ukraine (76.77% share of total imports), exports are the highest towards Croatia and Serbia (73.74%).

In September 2012, the Czech-Slovak-Hungarian market coupling became operational. This resulted in an increased price convergence towards regional markets and decreased price volatility, narrowing spreads on the national market.

The market coupling was an essential factor in the liquidity increase of HUPX, the Hungarian power exchange, a subsidiary of MAVIR. Day-ahead turnover was 3.78, 6.32 and 9.07 TWh, in 2011, 2012 and 2013 respectively. Prices fell from EUR 55.81/MWh in 2011 to EUR 42.33/MWh in 2013. Trade in physical futures, launched only in 2011, has also seen steady growth.

Magyar Energia Hivatal is the Hungarian NRA.

The Commercial Code (Kereskedelmi Szabályzat) and the Operational Code (Üzemi Szabályzat) of the TSO, as approved by the Hungarian NRA, are instrumental for electricity trading.

Source: http://www.mondaq.com, http://ec.europa.eu

October 2015



SPOT




FORWARD




REGULATED ELECTRICITY SYSTEM USE CHARGES


Source: http://www.mekh.hu/en/regulated-prices/electricity.html

Regulated electricity system use charges in Hungary as of 1st January 20151 (without VAT)

I. Charges of transmission-system operation and ancillary services (HUF/kWh)

A) To be paid to the TSO or to the DSO by the end-users

1.1Transmission andsystem operation charge 1.221

1.2 Charge for ancillary services 0.674

B) To be paid to the TSO after cross-border electricity transmission2

Export Import

2.1Transmission andsystem operation charge

The product of the value published on ENTSO-E's web page and the

official daily euro exchange rate of the National Bank

2.2 Charge for ancillary services 0

II. Distribution charges

Distribution basic charge

Distribution capacity charge

Distribution energy charge

Distribution reactive power

chargeDistribution loss charge

Distribution time schedule balancing fee

HUF/connection point/year

HUF/kW/year HUF/kWh HUF/kVArh HUF/kWh HUF/kWh

To be paid to the distributor by those taking out from distribution network and in case of export from the distribution networka.) High voltage connection 209,820 1,428 0.23 2.17 0.18 -b.) High/medium voltage connection 104,904 4,176 0.91 2.62 0.28 -c.) Medium voltage connection 104,904 7,860 1.70 2.62 0.95 -d.) Medium/low voltage connection

I. profile based, all day3 3,492 - 5.86 3.63 1.82 0.36II. profile based, controlled 1,152 - 1.74 - 1.40 0.24III. not profile based4 34,968 7,704 2.62 3.63 1.82 -

e.) Low voltage connectionI. profile based, all day3,5 1,446 - 8.43 3.63 2.79 0.36II. profile based, controlled5 474 - 2.79 - 2.08 0.24III. not profile based4 34,968 8,424 4.25 3.63 2.79 -

Public lighting distribution charge (beyond the above charges): 10,00 HUF/kWh

1Eur = 314.93 HUF, 30 June 2015

Remarks1.: Appendix 1 to the decree 4/2013. (X. 16.) MEKH (in Hungarian only).

2.: For countries not participating in the TSOs' contract for the fulfillment of the Decree 838/2010 EU.

3.: With contracted capacity not exceeding 55,2 kW or 3x80 A.

4.: With contracted capacity exceeding 55,2 kW or 3x80 A

5.: The residential customers supplied by the Universal Service Providers belong to those categories.

October 2015

http://www.mekh.hu/en/regulated-prices/electricity.html






Regulated electricity system use charges in Hungary from 1st September 2014 1 to 31 December 2014 (without VAT)






Export Import














To be paid to the distributor by those taking out from distribution network and in case of export from the distribution networka.) High voltage connection 210,912 1,464 0.23 2.19 0.19 -b.) High/medium voltage connection 105,456 4,212 0.94 2.65 0.29 -c.) Medium voltage connection 105,456 7,860 1,76 2.65 1.00 -d.) Medium/low voltage connection




1Eur = 312.7 HUF, October 2, 2015






October 2015







Regulated electricity system use charges in Hungary from 1st November 2013 to 31 of October 20131 (without VAT)






Export Import














To be paid to the distributor by those taking out from distribution network and in case of export from the distribution networka.) High voltage connection 210,912 1,464 0.23 2.19 0.19 -b.) High/medium voltage connection 105,456 4,212 0.94 2.65 0.29 -c.) Medium voltage connection 105,456 7,860 1.76 2.65 1.00 -d.) Medium/low voltage connection









1Eur = 312.7 HUF, October 2, 2015

October 2015




ELECTRICITY SYSTEM USAGE PRICES – HISTORIC (in HUF/kWh)



* The marked tariffs were published as corrections in Magyar Közlöny No. 6/2006. VAT not included2.: These items are not part of the system usage from 1/1/2008.

Electricity system usage prices (excluding VAT 1) in Hungary from 2003 (HUF/kWh)

1.) Charges for transmission-system operation (before 2008 system operation and transmission) and ancillary services

a) For consumers connected to transmission network

Jan Feb Aug Jan 17th July Feb Jan Aug Feb Jan Jan Jan Jan Jan Jan Nov Jan2003 2003 2003 2003 2004 2005 2006 2006 2007 2008 2009 2010 2011 2012 2013 2013 2015

Transmission charge 0.552 0.552 0.552 0.622 0.622 0.881 0.881 0.881 0.977System operation charge 0.597 0.613 0.728 0.957 0.957 1.125 2.553 3.410 2.837

incl. - charge for stranded costs2 0.100 0.100 0.200 0.200 0.200 0.273 1.126 * 1.126 0.728

- coal industry support2 0.265 0.265 0.225

- renewable & cogen support2 0.198 0.195 0.195 0.418 0.418 0.637 1.027 * 1.884 1.884

(- for system operation costs, considering also the other

incomes of the system operator )

0.299 0.318 0.333 0.339 0.339 0.215 0.135 0.135 0.000

Transmission system operation charge

(before 2008 the sum of the transmission charge and the system

operation charge)

1.149 1.165 1.28 1.579 1.579 2.006 3.434 4.291 3.814 0.910 0.577 0.823 1.272 1.519 1.078 1.233 1.221

Charge for ancillary services 0.629 0.629 0.629 0.652 0.607 0.638 0.574 0.574 0.612 0.612 0.423 0.712 0.637 0.702 0.867 0.984 0.674Total 1.778 1.794 1.909 2.231 2.186 2.644 4.008 4.865 4.426 1.522 1.000 1.535 1.909 2.221 1.945 2.217 1.895

b) For consumers connected to distribution network

Jan Feb Aug Jan 17th July Feb Jan Aug Feb Jan Jan Jan Jan Jan Jan Nov Jan2003 2003 2003 2003 2004 2005 2006 2006 2007 2008 2009 2010 2011 2012 2013 2013 2015

Transmission charge 0.597 0.597 0.597 0.683 0.683 0.968 0.968 0.968 1.074System operation charge 0.645 0.662 0.787 1.055 1.055 1.237 2.807 3.748 3.117

incl. - charge for stranded costs2 0.108 0.108 0.216 0.221 0.221 0.300 1.238 * 1.238 0.800

- coal industry support2 0.291 0.291 0.247

- renewable & cogen support2 0.214 0.211 0.211 0.461 0.461 0.700 1.129 * 2.070 2.070

(- for system operation costs, considering also the other

incomes of the system operator )

0.323 0.343 0.360 0.373 0.373 0.237 0.149 0.149 0.000

Transmission system operation charge

(before 2008 the sum of the transmission charge and the system

operation charge)

1.242 1.259 1.384 1.738 1.738 2.205 3.775 4.716 4.191 1.000 0.577 0.823 1.272 1.519 1.078 1.233 1.221

Charge for ancillary services 0.679 0.679 0.679 0.719 0.669 0.701 0.631 0.631 0.672 0.672 0.423 0.712 0.637 0.702 0.867 0.984 0.674Total 1.921 1.938 2.063 2.457 2.407 2.906 4.406 5.347 4.863 1.672 1.000 1.535 1.909 2.221 1.945 2.217 1.895

1Eur = 312.7 HUF, October 2, 2015

October 2015


Remarks:

1.: VAT not included: Until 31/12/2003 12 %, from 1/1/2004 to 31/12/2005 25 %, from 1/1/2006 to 30/6/2009 20 %, from 1/7/2009 to 12/12/2011 25 %, from 1/1/2012 27 %.

2.: These items are not part of the system usage from 1/1/2008.

3.: Calculated without public lighting distribution charge and without distribution time schedule balancing fee, with average quantitative data for each category. (These items are shown in the file "System use tariffs 2013 Nov".)

4.: Calculated with the weights considered for the 2001 - 2004 price regulation period.

5.: Calculated with the weights considered for the 2005 - 2008 price regulation period.

6.: A category introduced on 1/1/2004.


8.: Before 2008 in case of not more than 3*32 A, in 2008 not more than 3*50 A, from 2009 not more than 3*80 A contracted capacity.

9.: Before 2008 in case of more than 3*32 A, in 2008 more than 3*50 A, from 2009 more than 3*80 A contracted capacity.

10.: Calculated with the weights considered at the beginning of the 2009 - 2012 price regulation period.

11.: Calculated with the weights according to the Methodology amended on 30/10/2009.

12.: Calculated with the weights of the year 2011.13.: Calculated with the weights of the year 2012.14.: Calculated with the weights of the year 2013.

2.) Distribution (average) charges3Jan Feb Aug Jan Jan Feb Jan Aug Feb Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Nov Nov Jan

20034 20034 20034 20044 20045 20055 20065 20065 20075 20085 200810 200910 200911 201011 201111 201211 201212 201312 201313 201313 201314 201514

High voltage connection 0.400 0.428 0.458 0.465 0.521 0.564 0.550 0.580 0.626 0.715 0.709 0.969 1.017 0.672 0.651 0.691 0.703 0.994 0.965 0.916 0.910 0.889

Connection to high/medium voltage transformer6

1.374 1.868 1.795 1.770 1.810 1.964 2.112 1.842 2.247 2.647 2.176 2.174 2.278 1.994 2.739 2.817 2.768 2.613 2.562

Medium voltage connection 2.514 2.614 2.752 2.910 2.868 3.089 3.030 3.110 3.382 3.779 3.606 4.275 4.230 4.158 4.049 4.312 4.405 5.615 5.538 5.499 5.479 5.368

Connection to medium/low voltage transformer7

6.797 6.425 6.260 6.338 6.150 5.909 6.315 6.644 8.168 8.180 8.149 8.210 8.094

Low voltage connection I.8 8.173 8.475 8.972 8.999 8.856 9.872 9.712 9.922 10.724 11.627 11.605 13.601 13.647 13.889 13.520 14.372 14.411 12.500 12.521 12.239 12.233 11.919

Low voltage connection II. (controlled)

3.867 4.130 3.570 3.487 3.490 3.092 2.912 3.272 3.567 4.750 4.750 6.357 6.325 6.134 5.764 6.214 6.241 5.696 5.718 5.440 5.470 5.312

Low voltage connection III.9 7.172 7.466 7.929 7.986 7.891 8.767 8.604 8.844 9.553 10.703 10.367 12.070 12.705 12.566 12.274 13.088 13.761 13.727 13.905 13.630 13.473 13.023

Distribution total 4.932 5.135 5.410 5.376 5.438 5.955 5.840 6.009 6.501 7.061 6.845 8.046 8.001 7.967 7.739 8.239 8.099 7.962 7.889 7.742 7.691 7.509



ELECTRICITY SYSTEM USAGE PRICES – HISTORIC (in HUF/kWh)



1Eur = 312.7 HUF, October 2, 2015

October 2015






Remarks:




4.: These items show the effect of the abandonment of the non-tax levies included in the system operation charge before 2008 as well.



Electricity system use price changes in Hungary from 2003

1.) Changes of the system operation, ancillary services and transmission prices

a) For consumers connected to transmission network

Feb Aug Jan 17th July Feb Jan Aug Feb Jan Jan Jan Jan Jan Jan Nov Jan

2003 2003 2003 2004 2005 2006 2006 2007 20084 2009 2010 2011 2012 2013 2013 2015

Transmission charge 0.0% 0.0% 12.7% 0.0% 41.6% 0.0% 0.0% 10.9%

System operation charge 2.7% 18.8% 31.5% 0.0% 17.6% 126.9% 33.6% -16.8%

incl. - charge for stranded costs2 0.0% 100.0% 0.0% 0.0% 36.5% 312.5% 0.0% -35.3%

- coal industry support2 0.0% -15.1%

- renewable & cogen support2 -1.5% 0.0% 114.4% 0.0% 52.4% 61.2% 83.4% 0.0%

(- for system operation costs, considering also the other incomes of the system operator )

6.4% 4.7% 1.8% 0.0% -36.6% -37.2% 0.0% -100.0%

Transmission system operation charge (before 2008 the sum of the transmission charge and the system operation charge)

1.4% 9.9% 23.4% 0.0% 27.0% 71.2% 25.0% -11.1% -76.1% -36.6% 42.6% 54.6% 19.4% -29.0% 14.4% -1.0%

Charge for ancillary services 0.0% 0.0% 3.7% -6.9% 5.1% -10.0% 0.0% 6.6% 0.0% -30.9% 68.3% -10.5% 10.2% 23.5% 13.5% -31.5%

Total 0.9% 6.4% 16.9% -2.0% 21.0% 51.6% 21.4% -9.0% -65.6% -34.3% 53.5% 24.4% 16.3% -12.4% 14.0% -14.5%

b) For consumers connected to distribution network

Feb Aug Jan 17th July Feb Jan Aug Feb Jan Jan Jan Jan Jan Jan Nov Jan2003 2003 2003 2004 2005 2006 2006 2007 20084 2009 2010 2011 2012 2013 2013 2015

Transmission charge 0.0% 0.0% 14.4% 0.0% 41.7% 0.0% 0.0% 11.0%

System operation charge 2.6% 18.9% 34.1% 0.0% 17.3% 126.9% 33.5% -16.8%

incl. - charge for stranded costs2 0.0% 100.0% 2.3% 0.0% 35.7% 312.7% 0.0% -35.4%

- coal industry support2 0.0% -15.1%

- renewable & cogen support2 -1.4% 0.0% 118.5% 0.0% 51.8% 61.3% 83.3% 0.0%

(- for system operation costs, considering also the other incomes of the system operator )

6.2% 5.0% 3.6% 0.0% -36.5% -37.1% 0.0% -100.0%

Transmission system operation charge (before 2008 the sum of the transmission charge and the system operation charge)

1.4% 9.9% 25.6% 0.0% 26.9% 71.2% 24.9% -11.1% -76.1% -42.3% 42.6% 54.6% 19.4% -29.0% 14.4% -1.0%

Charge for ancillary services 0.0% 0.0% 5.9% -7.0% 4.8% -10.0% 0.0% 6.5% 0.0% -37.1% 68.3% -10.5% 10.2% 23.5% 13.5% -31.5%

Total 0.9% 6.4% 19.1% -2.0% 20.7% 51.6% 21.4% -9.1% -65.6% -40.2% 53.5% 24.4% 16.3% -12.4% 14.0% -14.5%

ELECTRICITY SYSTEM USE PRICE CHANGES (in %)1Eur = 312.7 HUF, October 2, 2015

October 2015




ELECTRICITY SYSTEM USE PRICE CHANGES (in %)



2.) Changes of the average distribution prices* (calculated with identical weights)Feb Aug Jan Feb Jan Aug Feb Jan Jan Jan Jan Jan Jan Nov Jan

2003 2003 2004 2005 2006 2006 2007 2008 2009 2010 2011 2012 2013 2013 2015

High voltage connection 6.9% 7.0% 1.5% 8.2% -2.4% 5.5% 7.9% 14.1% 36.6% -33.9% -3.1% 6.1% 41.3% -5.1% -2.3%

Connection to high/medium voltage transformer2

-3.9% -1.4% 2.3% 8.5% 7.5% 22.0% -17.8% -0.1% 4.8% 37.4% -1.8% -2.0%

Medium voltage connection 4.0% 5.3% 5.8% 7.7% -1.9% 2.6% 8.8% 11.7% 18.5% -1.7% -2.6% 6.5% 27.5% -0.7% -2.0%

Connection to medium/low voltage transformer3

-2.6% -3.0% -3.9% 6.9% 22.9% -0.4% -1.4%

Low voltage connection I.5 3.7% 5.9% 0.3% 11.5% -1.6% 2.2% 8.1% 8.4% 17.2% 1.8% -2.7% 6.3% -13.3% -2.3% -2.6%

Low voltage connection II. (controlled) 6.8% -13.6% -2.3% -11.4% -5.8% 12.4% 9.0% 33.2% 33.8% -3.0% -6.0% 7.8% -8.7% -4.9% -2.9%

Low voltage connection III.6 4.1% 6.2% 0.7% 11.1% -1.9% 2.8% 8.0% 12.0% 16.4% -1.1% -2.3% 6.6% -0.2% -2.0% -3.3%

Distribution total 4.1% 5.4% -0.6% 9.5% -1.9% 2.9% 8.2% 8.6% 17.5% -0.4% -2.9% 6.5% -1.7% -1.9% -2.4%

Remarks:




4.: These items show the effect of the abandonment of the non-tax levies included in the system operation charge before 2008 as well.



* Without the public lighting distribution charge and the distribution time schedule balancing fees.

1Eur = 312.7 HUF, October 2, 2015

October 2015




ELECTRICITY SYSTEM USE CHARGES without VAT from 2003



Average charges (HUF/kWh)Jan Feb Aug Jan 17 July 17 July Feb Jan Aug Feb Jan Jan Jan Jan Jan Jan Nov Jan

2003 7 2003 7 2003 7 2004 7 2004 7 2004 8 2005 8 2006 8 2006 8 2007 8 2008 8 2009 14 2010 15 2011 15 2012 15 2013 16 2013 17 2015 18

Connection to the transmission network3 1.78 1.79 1.91 2.23 2.19 2.19 2.64 4.01 4.87 4.43 1.52 1.00 1.54 1.91 2.22 1.95 2.22 1.90

Connection to the distribution network4, 5

High voltage connection 2.32 2.37 2.52 2.92 2.87 2.93 3.47 4.96 5.93 5.49 2.39 1.97 2.21 2.56 2.91 2.94 3.13 2.78

Connection to medium voltage transformator6 3.83 3.78 4.28 4.70 6.18 7.16 6.83 3.78 3.25 3.71 4.08 4.50 4.68 4.98 4.46

Medium voltage connection 4.44 4.55 4.81 5.37 5.32 5.28 5.99 7.44 8.46 8.24 5.45 5.27 5.69 5.96 6.53 7.56 7.72 7.26Connection to low voltagetransformator10

6.80 7.26 7.68 7.82 8.54 10.11 10.37 9.99

Low voltage connection I.12 10.09 10.41 11.04 11.46 11.41 11.26 12.78 14.12 15.27 15.59 13.30 14.60 15.42 15.43 16.59 14.44 14.46 13.81

Low voltage connection II. (controlled) 5.79 6.07 5.63 5.94 5.89 5.90 6.00 7.32 8.62 8.43 6.42 7.36 7.67 7.67 8.43 7.64 7.66 7.21

Low voltage connection III.13 9.09 9.40 9.99 10.44 10.39 10.30 11.67 13.01 14.19 14.42 12.38 13.07 14.10 14.18 15.31 15.67 15.85 14.92Together 6.85 7.07 7.47 7.83 7.78 7.84 8.86 10.25 11.36 11.36 8.73 9.05 9.50 9.65 10.46 9.91 9.96 9.40

Remarks:

1.: Until 31/12/2003 12 %, from 1/1/2004 to 31/12/2005 25 %, from 1/1/2006 to 30/6/2009 20 %, from 1/7/2009 to 12/12/2011 25 %, from 1/1/2012 27 %.2.: The figures show the changes compared to the prices of the previous period but in the column

- "Feb 2005" compared to the 17/7/2004 average charges recalculated with the weights considered for the 2005-2008 price regulation period,- "Jan 2009" compared to the "Jan 2008" average charges recalculated with the weights considered for the 2009-2012 price regulation period,- "Jan 2010" compared to the "Jan 2009" average charges recalculated with the weights considered for the 2010 price calculations,- "Jan 2013" compared to the "Jan 2012" average charges recalculated with the weights of 2011,- "Nov 2013" compared to the "Jan 2013" average charges recalculated with the weights of 2012,- "Jan 2015" compared to the "Nov 2013" average charges recalculated with the weights of 2013.

Thus, these columns show values which differ from those that can be derived from the relevant columns of the "Average charges" table.3.: Sum of system operation, ancillary services and transmission charges.

4.: Sum of system operation, ancillary services, transmission and the average value of the distribution charge.5.: Calculated without public lighting distribution charge and distribution time schedule balancing fee.6.: A category introduced on 1/1/2004.7.: Calculated with the weights considered for the 2001 - 2004 price regulation period.8.: Calculated with the weights considered for the 2005 - 2008 price regulation period.

9.: The figures in this column only show the effect caused by the ancillary services charge decrease introduced simultaneously with the distribution time schedule balancing fee on 17 July 2004.10.: A category introduced on 1/1/2008.

11.: These items show also the effect of the abandonment of the non-tax levies included in the system operation charge before 2008.


13.: Before 2008 in case of more than 3*32 A, in 2008 more than 3*50 A, from 2009 more than 3*80 A contracted capacity.14.: Calculated with the weights considered at the beginning of the 2009 - 2012 price regulation period.15.: Calculated with the weights according to the Methodology amended on 30/10/2009.16.: Calculated with the weights of the year 2011.17.: Calculated with the weights of the year 2012.

1Eur = 312.7 HUF, October 2, 2015

October 2015






Average changes2 (%)

Feb Aug Jan 17 July Feb Jan Aug Feb Jan Jan Jan Jan Jan Jan Nov Jan2003 2003 2004 2004 9 2005 2006 2006 2007 2008 11 2009 2010 2011 2012 2013 2013 2015

Connection to the transmission network3 0.9% 6.4% 16.9% -2.0% 21.0% 51.6% 21.4% -9.0% -65.6% -34.3% 53.5% 24.4% 16.3% -12.4% 14.0% -14.5%

Connection to the distribution network4, 5

High voltage connection 1.9% 6.5% 15.9% -1.7% 18.5% 42.8% 19.6% -7.4% -56.5% -17.3% 9.4% 16.0% 13.7% 0.5% 7.7% -2.7%

Connection to medium voltage transformator6 -1.3% 10.0% 31.4% 15.9% -4.6% -44.6% -7.6% 1.7% 10.0% 10.2% 11.1% 4.7% -5.4%

Medium voltage connection 2.6% 5.8% 11.5% -0.9% 13.6% 24.0% 13.7% -2.5% -33.9% -0.1% 8.9% 4.6% 9.7% 13.3% 3.1% -2.4%

Connection to low voltagetransformator10

-10.3% 4.7% 1.7% 9.2% 14.1% 2.4% -1.0%

Low voltage connection I.12 3.2% 6.0% 3.8% -0.4% 13.5% 10.5% 8.2% 2.1% -14.7% 10.0% 4.9% 0.0% 7.5% -13.2% -0.1% -2.6%

Low voltage connection II. (controlled) 4.8% -7.2% 5.5% -0.8% 1.7% 22.0% 17.8% -2.2% -23.8% 14.6% 5.3% 0.1% 9.9% -9.6% -0.1% -2.4%

Low voltage connection III.13 3.4% 6.3% 4.5% -0.5% 13.4% 11.5% 9.1% 1.6% -14.2% 8.6% 4.7% 0.6% 7.9% -1.9% 0.0% -4.2%

Together 3.2% 5.7% 4.8% -0.6% 12.9% 15.6% 10.8% 0.1% -23.1% 6.2% 2.9% 1.5% 8.4% -4.1% 1.3% -2.9%

Remarks:

1.: Until 31/12/2003 12 %, from 1/1/2004 to 31/12/2005 25 %, from 1/1/2006 to 30/6/2009 20 %, from 1/7/2009 to 12/12/2011 25 %, from 1/1/2012 27 %.2.: The figures show the changes compared to the prices of the previous period but in the column

- "Feb 2005" compared to the 17/7/2004 average charges recalculated with the weights considered for the 2005-2008 price regulation period,- "Jan 2009" compared to the "Jan 2008" average charges recalculated with the weights considered for the 2009-2012 price regulation period,- "Jan 2010" compared to the "Jan 2009" average charges recalculated with the weights considered for the 2010 price calculations,- "Jan 2013" compared to the "Jan 2012" average charges recalculated with the weights of 2011,- "Nov 2013" compared to the "Jan 2013" average charges recalculated with the weights of 2012,- "Jan 2015" compared to the "Nov 2013" average charges recalculated with the weights of 2013.Thus, these columns show values which differ from those that can be derived from the relevant columns of the "Average charges" table.

3.: Sum of system operation, ancillary services and transmission charges.

4.: Sum of system operation, ancillary services, transmission and the average value of the distribution charge.5.: Calculated without public lighting distribution charge and distribution time schedule balancing fee.6.: A category introduced on 1/1/2004.7.: Calculated with the weights considered for the 2001 - 2004 price regulation period.8.: Calculated with the weights considered for the 2005 - 2008 price regulation period.

9.: The figures in this column only show the effect caused by the ancillary services charge decrease introduced simultaneously with the distribution time schedule balancing fee on 17 July 2004.10.: A category introduced on 1/1/2008.

11.: These items show also the effect of the abandonment of the non-tax levies included in the system operation charge before 2008.


13.: Before 2008 in case of more than 3*32 A, in 2008 more than 3*50 A, from 2009 more than 3*80 A contracted capacity.14.: Calculated with the weights considered at the beginning of the 2009 - 2012 price regulation period.15.: Calculated with the weights according to the Methodology amended on 30/10/2009.16.: Calculated with the weights of the year 2011.17.: Calculated with the weights of the year 2012.

ELECTRICITY SYSTEM USE CHARGES without VAT from 20031Eur = 312.7 HUF, October 2, 2015

October 2015


Average inner proportions of specific distribution charges* in 2015 calculated on kWh basis

Basic (fix) charge

1

Capacity charge

2

Energy charge

3

Charge for reactive power

4

Charges to cover

network costs

(network + metering)

5 = 1+2+3+4

Loss charge6

Distribution charge,

total7 = 5 + 6

High voltage 0.53% 47.81% 25.88% 5.52% 79.7% 20.3% 100%

High/medium voltage 0.40% 51.17% 35.53% 1.97% 89.1% 10.9% 100%

Medium Voltage 1.37% 47.60% 31.67% 1.66% 82.3% 17.7% 100%

Medium/low voltage 1.1% 35.9% 37.5% 3.1% 77.5% 22.5% 100%

( I. ) Profile based settlement, all day 0.8% 0.0% 75.5% 0.3% 76.6% 23.4% 100%

( II. ) Profile based settlement, controlled 1.8% 0.0% 54.4% 0.0% 56.2% 43.8% 100%

( II. ) Not profile based settlement 1% 40.9% 32.2% 3.4% 77.7% 22.3% 100%

Low voltage

( I. ) Profile based settlement, all day 5.8% 0.0% 70.7% 0.0% 76.6% 23.4% 100%

( II. ) Profile based settlement, controlled 8.3% 0.0% 52.5% 0.0% 60.8% 39.2% 100%

( III. ) Not profile based settlement 2.3% 39.8% 32.6% 3.8% 78.6% 21.4% 100%

Average 4.01% 18.31% 54.01% 1.18% 77.5% 22.5% 100%

* Without the public lighting distribution fee (medium/low voltage) and the distribution time schedule balancing fee (profile based categories).





PROPORTION OF SPECIFIC DISTRIBUTION CHARGES IN 2015 (in %)1Eur = 312.7 HUF, October 2, 2015

October 2015






ELECTRICITY DISTRIBUTION CHARGES – from 1st of January 2015Electricity charges for non-residential customers and public institutions from 1/01/2015

ALL DISTRIBUTORS

Price componentsGeneral all day tariff ("A1")

General, two zone time tariff for non-residential customers("A2") (2)

Tariff for public institutions ("A3") (2)Seasonal (controlled) tariffs for non-residential customers ("B")

Non-residential customers Peak-time (3) Off-peak time (3) Peak-time (3) Off-peak time (3)"B Alap"(and "H")

"B Komfort“/ “B GEO”

Standing charges and capacity charges Distribution standing charge (5), HUF/year

without VAT 1.446 1.446 34,968 474with VAT 1.836 1.836 44,409 602

Distribution capacity charge (5), HUF/kW/yearwithout VAT 8,640

with VAT 10,973

EDF DÉMÁSZ Zrt. - Energy related charges (HUF/kWh)

Universal service price (6) 21.77 25.48 15.01 25.69 15.13 12.69 14.59Energy related system use charges (5) 13.48 13.48 13.48 8.94 8.94 7.01 7.01For separate funds (7) 2.42 2.42 2.42 2.42 2.42 2.42 2.42Total (8) (9)

without VAT 37.67 41.38 30.91 37.05 26.49 22.12 24.02

with VAT 47.18 51.89 38.60 46.39 32.98 27.43 29.85

E.ON Energiaszolgáltató Kft. - Energy related charges (HUF/kWh)Universal service price (6) 22.02 27.92 17.80 30.26 29.03 13.08

Energy related system use charges (5) 13.48 13.48 13.48 8.94 8.94 7.01For separate funds (7) 2.42 13.48 13.48 13.48 13.48 13.48Total (8) (9)

without VAT 37.92 54.87 44.75 52.67 41.43 33.56with VAT 47.50 66.05 53.19 63.25 48.98 38.98

ELMŰ Nyrt. - Energy related charges (HUF/kWh)

Universal service price (6) 21.80 26.91 16.18 26.86 16.13 12.74 13.82

Energy related system use charges (5) 21.80 26.91 16.18 26.86 16.13 12.74 13.82

For separate funds (7) 2.42 2.42 2.42 2.42 2.42 2.42 2.42

Total (8) (9)without VAT 46.02 56.24 34.78 56.14 34.68 27.90 30.06

with VAT 57.79 70.77 43.52 70.64 43.39 34.78 37.52

ÉMÁSZ Nyrt. - Energy related charges (HUF/kWh)





with VAT 46.91 51.13 38.51 45.30 32.68 26.94 28.87

1Eur = 312.7 HUF, October 2, 2015

October 2015






ELECTRICITY DISTRIBUTION CHARGES – from 1st September 2014 to 31 December 2014Electricity charges for non-residential customers and public institutions 1/09/2014 – 31/12/2014

ALL DISTRIBUTORS







without VAT 1,446 1,446 35,148 474with VAT 1,836 1,836 44,638 602


with VAT 10,973


Universal service price (6) 21.77 25.48 15.01 25.69 15.13 12.69 14.59Energy related system use charges (5) 14.11 14.11 14.11 9.57 9.57 7.48 7.48

For separate funds (7) 2.08 2.08 2.08 2.08 2.08 2.08 2.08Total (8) (9)

without VAT 37.96 41.67 31.20 37.34 26.78 22.25 24.15with VAT 47.65 52.36 39.06 46.86 33.45 27.70 30.11









with VAT 47.68 54.17 40.55 48.34 34.72 27.76 29.13






with VAT 47.38 51.60 38.97 45.76 33.14 27.20 29.13

1Eur = 312.7 HUF, October 2, 2015

October 2015






ELECTRICITY DISTRIBUTION CHARGES – from 1st November 2013 to 31 August 2014Electricity charges for non-residential customers and public institutions 1/11/2013 – 31/08/2014

ALL DISTRIBUTORS









with VAT 10,973


Universal service price (6) 21.77 25.48 15.01 25.69 15.13 12.69 14.59Energy related system use charges (5) 14.07 14.07 14.07 9.57 9.57 7.46 7.46For separate funds (7) 2.08 2.08 2.08 2.08 2.08 2.08 2.08

Total (8) (9)without VAT 37.92 41.63 31.16 37.34 26.78 22.23 24.13with VAT 47.59 52.30 39.01 46.86 33.45 27.67 30.08





Universal service price (6) 21.80 26.91 16.18 26.86 16.13 12.74 13.82Energy related system use charges (5) 14.07 14.07 14.07 9.57 9.57 7.46 7.46For separate funds (7) 2.08 2.08 2.08 2.08 2.08 2.08 2.08Total (8) (9)

without VAT 37.95 43.06 32.33 38.51 27.78 22.28 23.36with VAT 47.63 54.12 40.49 48.34 34.72 27.73 29.10






with VAT 47.33 51.54 38.92 45.76 33.14 27.17 29.10

1Eur = 312.7 HUF, October 2, 2015

October 2015


Notes

1. To be applied exclusively in the case of residential customers, up to consumption of 1320 kWh/year (110 kWh/month).

2. The required metering conditions have to be met in order to be entitled to purchase electricity according to the two-zone-time tariff.

3. Zone times in accordance with Appendix 1 to the Decree 4/2011. (I. 31.) NFM.

4. Calculated with the "2014 expected" amounts (submitted by the supplier to the HEA in October 2014) and with average system use charges.

5. According to the Appendix 1 to the decree 4/2013. (X. 16.) MEKH (without public lighting charge and reactive energy charge).6. Includes the "market" price for the energy and the USP's margin. [Decree 4/2011. (I. 31.) NFM]

7.Based on Articles 147-148 of the Act LXXXVI of 2007 on electricity (items not subject to VAT): coal industry support 0,21 HUF/kWh, for the electric industry pensioners' discounted electricity supply 0,13HUF/kWh; cogeneration restructuring support 2.08 HUF/kWh. The residential customers are exempted from these charges from 1st November, 2013.

8. The figures does not contain the distribution standing and capacity charges.

9. The non-residential customers are obliged to pay energy tax (subject to VAT) as well, which is 310 HUF/MWh (Act LXXXVIII. of 2003).

10. Besides the energy related charges it contains the effect of the distribution standing charge for 1 kWh as well.





ELECTRICITY CHARGES for universal service customers of EDF DÉMÁSZ Zrt.

EDF DÉMÁSZ Zrt. Electricity charges for non-residential customers and public institutions from 1/01/2015

Price components

General all day tariff ("A1")General, two zone time tariff for non-

residential customers("A2") (2)Tariff for public institutions ("A3") (2)

Seasonal (controlled) tariffs for non-residential

customers ("B")

Non-residential customers Peak-time (3) Off-peak time (3) Peak-time (3)Off-peak time

(3)"B Alap"(and "H")

"B Komfort"

Standing charges and capacity chargesDistribution standing charge (5), HUF/year

without VAT 1,446 1,446 34,968 474

with VAT 1,836 1,836 44,409 602Distribution capacity charge (5), HUF/kW/year

without VAT 8,640

with VAT 10,973





without VAT 37.67 41.38 30.91 37.05 26.49 22.12 24.02

with VAT 47.18 51.89 38.60 46.39 32.98 27.43 29.85

1Eur = 312.7 HUF, October 2, 2015

October 2015


E.ON Energiaszolgáltató Kft. Electricity charges for non-residential customers and public institutions from 1/01/2015

Price components

General all day tariff ("A1")General, two zone time tariff for

non-residential customers("A2") (2)Tariff for public institutions ("A3")

(2)


customers ("B")





Distribution capacity charge (5), HUF/kW/year

without VAT 8,640with VAT 10,973

E.ON Energiaszolgáltató Kft. - Energy related charges (HUF/kWh)

Universal service price (6) 22.02 27.92 17.80 30.26 19.02 13.08

Energy related system use charges (5) 13.48 13.48 13.48 8.94 8.94 7.01

For separate funds (7) 2.42 13.48 13.48 13.48 13.48 13.48Total (8) (9)

without VAT 37.92 54.87 44.75 52.67 41.43 33.56

with VAT 47.50 66.05 53.19 63.25 48.98 38.98

Notes





5. According to the Appendix 1 to the decree 4/2013. (X. 16.) MEKH (without public lighting charge and reactive energy charge).

6. Includes the "market" price for the energy and the USP's margin. [Decree 4/2011. (I. 31.) NFM]7.Based on Articles 147-148 of the Act LXXXVI of 2007 on electricity (items not subject to VAT): coal industry support 0,21 HUF/kWh, for the electric industry pensioners' discounted electricity supply 0,13HUF/kWh; cogeneration restructuring support 2.08 HUF/kWh. The residential customers are exempted from these charges from 1st November, 2013.8. The figures does not contain the distribution standing and capacity charges.9. The non-residential customers are obliged to pay energy tax (subject to VAT) as well, which is 310 HUF/MWh (Act LXXXVIII. of 2003).






ELECTRICITY CHARGES for universal service customers of E.ON Energiaszolgáltató Kft.

1Eur = 312.7 HUF, October 2, 2015

October 2015


ELMŰ Nyrt. Electricity charges for non-residential customers and public institutions from 1/01/2015

Price components




customers ("B")



"B GEO"









without VAT 46.02 56.24 34.78 56.14 34.68 27.90 30.06

with VAT 57.79 70.77 43.52 70.64 43.39 34.78 37.52





ELECTRICITY CHARGES for universal service customers of ELMŰ Nyrt.

Notes






6. Includes the "market" price for the energy and the USP's margin. [Decree 4/2011. (I. 31.) NFM]


8. The figures does not contain the distribution standing and capacity charges.

9. The non-residential customers are obliged to pay energy tax (subject to VAT) as well, which is 310 HUF/MWh (Act LXXXVIII. of 2003).


1Eur = 312.7 HUF, October 2, 2015

October 2015






ELECTRICITY CHARGES for universal service customers of ÉMÁSZ Nyrt.

ÉMÁSZ Nyrt. Electricity charges for non-residential customers and public institutions from 1/01/2015

Price components




customers ("B")



"B GEO"









without VAT 37.46 40.78 30.84 36.19 26.25 21.78 23.25

with VAT 46.91 51.13 38.51 45.30 32.68 26.94 28.87

Notes






6. Includes the "market" price for the energy and the USP's margin. [Decree 4/2011. (I. 31.) NFM]


8. The figures does not contain the distribution standing and capacity charges.9. The non-residential customers are obliged to pay energy tax (subject to VAT) as well, which is 310 HUF/MWh (Act LXXXVIII. of 2003).10. Besides the energy related charges it contains the effect of the distribution standing charge for 1 kWh as well.

1Eur = 312.7 HUF, October 2, 2015

October 2015




RETAIL MARKET


In 2012, 12.19 TWh of electricity was purchased under regulated

prices.

Household prices - composed of electricity and supply costs for 43%,

network costs for 35%.

ELECTRICITY MARKET

In 2012, 12.19 TWh of electricity was purchased under regulated prices. Almost all households remain under the regulated price regime with four companies covering 67.93% of the retail market.

The switching rate for household consumers remained low i.e 1.6%, up from 0.3% in 2011. Non-household consumers had higher switching rates with 13.3% of those customers switching supplier in 2012, up from 9.7% in 2011.

Household prices were composed of electricity and supply costs for 43%, network costs for 35%. VAT and other fees and costs make up the remaining 22% of the total price.

Due to a decrease in the European wholesale prices, the price moratorium in 2010 did not have significant effects until 2012.

In 2013, the 20% utility rate cut led to some distortions and increased the price divergence between wholesale and retail markets.

Source: http://ec.europa.eu

October 2015

http://ec.europa.eu/



PRICES – MEDIUM INDUSTRIALS


In EUR/kWh

Electricity price for industrial consumers is the average national price without taxes

for medium size industrial consumers (Consumption Band Ic with annual

consumption between 500 and 2000 MWh).

Source: Eurostat

The electricity prices charged to medium size industrial consumers

in Hungary decreased by 7.5% in 2015, reaching 0.0778 EUR/kWh.

Electricity prices for medium size industrials

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0.0654 0.0701 0.0753 0.0812 0.1119 0.1221 0.1037 0.0978 0.0888 0.0904 0.0836 0.0778

Electricity prices for medium size industrials in Hungary

Electricity prices for medium size industrials (EUR/kWh), 2014

October 2015



ENERGY TAXES


Losses are part of transmission system operation tariff. It is set in the justified cost of losses by

the Regulator in the early tariff.

ELECTRICITY MARKET

Source: http://www.rsmdtm.hu/tax-changes-2015

The Energy Tax is payable based on megawatts for electricity, on gigajoules for natural gas and on thousands of kilograms for coal.

The tax rates from January 1st, 2015 are as follows:HUF 310.50/MWh electric power;HUF 93.50/Gigajoule natural gas;HUF 2 516/1 000 kg coal.

The tax rates until 31/12/2014 are as follows:HUF 295/MWh electric power;HUF 88.50/Gigajoule natural gas;HUF 2 390/1 000 kg coal.

This tax is related to national and administrative institutions and energy-intensive production sectors.

Tax must be paid:• upon the sale of energy by an energy trader to an end user, not counting household consumers;• upon the procurement of energy by an end user in Hungary directly from a producer or from a regulated market, not counting household consumers;• upon the purchase of energy by an end user in Hungary directly from another Member State, not counting household consumers;• upon the purchase of energy by an end user directly from a non-Member Stat, not counting household consumers;• where energy is produced by a person for own use, with some exceptions;• upon the use of energy by an energy trader for own use;• where an end user buys or uses non-taxed energy products;• where an end user offers a false statement to the energy trader at the time of purchasing coal as to being a household consumer.

VAT rates in Hungary:Until 31/12/2003 - 12 %, From 1/1/2004 to 31/12/2005 -25 %,From 1/1/2006 to 30/6/2009 - 20 %, From 1/7/2009 to 12/12/2011 - 25 %, From 1/1/2012 - 27 %.

Losses are part of transmission system operation tariff. It is set in the justified cost of losses by the Regulator in the early tariff.

October 2015




TAX REGULATION


The energy sector is subject to an energy tax, a differentiated

profit tax and a crisis tax.

ELECTRICITY MARKET

The political and regulatory debate during 2012 and 2013 continued to focus on the price moratorium, on special utility sector taxes and since December 2012 on price cuts for household consumers.

The Minister of National Development approved a price adjustment equal to annual inflation at the beginning of 2012.

Nevertheless, the price rise in gas imports created a mismatch between the level of regulated retail prices and the wholesale import price.

The energy sector is subject to an energy tax, a differentiated profit tax and a crisis tax.

The crisis tax was set on (generation and supply) energy companies' taxable revenue and was due to expire in 2013. However, the government at the same time imposed a new tax on infrastructure, set by the length of transmission and distribution lines and pipelines.

In 2013, regulated prices for household consumers in the gas and electricity sector were cut by 20% and further decreases were announced for 2014 (electricity by 5.7% and gas by 6.5%).

Source: http://ec.europa.eu/

October 2015



NATURAL GAS MARKET

NATURAL GAS MARKET


October 2015




NATURAL GAS MARKET (1)


Licenses are issued by Hungarian Energy and Public Utility

Regulatory Authority

5 main regional DSOs owned by EON, ENI, GDF and state (Főgáz

DSO) plus 4 small DSOs in private hand

NATURAL GAS MARKET

LicensingLicenses are issued by Hungarian Energy and Public Utility Regulatory Authority for:Generation of natural gas, storage of natural gas, trade in natural gas, wholesale supply in the public utility market, distribution, system operations, access to cross-border pipelines, operation of the gas exchange market

Licenses are generally issued for unspecified periods.

Third Party AccessThe Gas Act from 2003 requires that holders of licenses for the storage, supply and distribution must allow access to any free capacity to certain market actors in exchange for a fee. The license holders can decide who should have access to their excess capacity.

Third party access can be refused on the following grounds:• Insufficient capacity to satisfy demand• Granting access could hinder the supply to household consumers• Quality of supplied gas does not meet required standards

Natural gas market structure

53 trading companies (51 are only wholesalers)4 main universal supplier companies,

Documents

Energy Statistics Poland€¦ · Due to the sparse energy and raw material resources, Hungary is forced to import most of these materials to satisfy the demands of the industry. Nearly