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Act LXXXVI of 2007

on Electricity 1
In force: 08.01.201229.09.2012

[consolidated with Government Decree No 273/2007 (X. 19.) on the


implementation of certain provisions of the Act]
[The text in bold characters is the text of Act LXXXVI of 2007 (VET); the text in
normal characters is the text of Government Decree No 273/2007 (X. 19.) on the
implementation of certain provisions of the Act (Vhr.).]
With a view to setting up an efficiently functioning internal electricity market,
to promote energy efficiency and energy conservation within the framework of
sustainable development, to provide consumers with a secure and reliable
supply of electricity of a specified quality at transparent prices, to integrate the
Hungarian electricity market into the converging electricity markets of the
European Communities, compliance with the legislation of the European
Communities, and to develop an objective and transparent regulatory regime in
compliance with the principle of equal treatment, Parliament has adopted the
following Act:
By virtue of the authorisation granted in points 1 to 8, 10 to 18, 20 to 21, 25 to 29,
31 to 34, 36 to 37 and 39 to 40 of Article 170(1) of Act LXXXVI of 2007 on Electrical
Energy acting in the function stipulated in Article 35(1)(b) of the Constitution the
Government orders the following for the implementation of certain provisions of the
VET:
Chapter I
INTRODUCTORY PROVISIONS
Objective
VET Article 1 The purposes of this Act shall be
(a) to enhance the economys competitive capacity through an efficient and
competitive internal market in electricity,
(b) to promote energy efficiency and energy-saving practices with a view to
ensuring sustainable development,
(c) to ensure homogeneity in the treatment of access to electricity networks
according to objective, transparent and non-discriminatory criteria,
(d) to provide consumers with a secure and reliable supply of electricity of a
specified quality at transparent prices,
(e) effective protection of consumers interests,
(f) integration of the Hungarian electricity market into the converging
electricity markets of the European Union, with particular regard to the
development and improvement of the Trans-European networks, and to
encouraging the interoperability of electricity systems,

(g) promoting the construction of new production facilities and new network
infrastructure, and facilitating new market entrants to enter the electricity
market,
(h) promoting the production of electricity generated from renewable energy
sources and waste, and electricity produced by a cogeneration process.
Scope
VET Article 2 (1) This Act shall apply to:
(a) the generation, transmission, distribution, trade, consumption and resale
of electricity,
(b) the operation of the electricity system,
(c) the construction, operation, commissioning, continuation and
decommissioning of electrical installations, customer interconnection systems
and consumer equipment, production lines, private lines and direct lines,
(d) the persons engaged in activities which are subject to authorisation under
this Act and in activities which are not, the persons performing certain
segments of activities which are subject to authorisation within the framework
of outsourcing prescribed in this Act, persons whose application for
authorisation or consent under this Act is pending until their application is
adjudged, persons performing activities subject to authorisation under this Act
without authorisation, integrated electricity companies, users of electricity,
purchasers of electricity, persons intending to acquire holdings, influence or
control in electricity companies if the implementation of the planned legal
transaction is subject to notification or preliminary official consent or approval
under this Act, the owner of the transmission network, the owners of electronic
communication network components, in particular fibre pairs, with the capacity
necessary for the transmission activity (hereinafter jointly referred to as:
electronic communication network components), and to the legal relationship
between natural persons, legal entities and legal entities without legal
personality to whom this Act applies.
(2) In respect of nuclear power plants, the provisions of this Act shall apply in
conformity with the special rules of the Act on Atomic Energy.
(3) In respect of heat co-generated with electricity, the provisions of this Act
shall apply in conformity with the special rules of the Act on District Heat
Supply.
Definitions
VET Article 3 For the purposes of this Act:
1. Transmission shall mean the transport of electricity through the
transmission network, including all related technical and economic activities
with a view to delivering electricity subject to standard quality requirements;
2. Transmission network shall mean a system of lines including
supporting structures and cross-border lines and the transformer and
switching equipment used for the transmission of electricity;
3.
4. Biomass shall mean the biodegradable fraction of products, waste and
residues (including vegetal and animal substances) from agriculture, forestry

and related industries, as well as the biodegradable fraction of industrial and


municipal waste;
4a. Safety zone shall mean a geographical area specified in the ministerial
decree on safety zones in compliance with Article 172(e) of Act CXL of 2004 on
the General Rules of Administrative Proceedings and Services (hereinafter
referred to as: Ket.) on which the planned or installed power plant, production
line, private line or direct line has a significant effect;
5. Connection point shall mean the property boundary between electrical
installations, between an electrical installation and the consumer equipment, or
between an electrical installation and a private line, production line or direct
line;
6. Interconnector shall mean a system of lines comprising part of the
transmission network or distribution network including the relevant
transformer and switching equipment linking the branching point of a
transmission or distribution network to a connection point. Metering
equipment shall be considered part of the interconnector;
7. Universal service shall mean a unique form of sale within the framework
of trade in electricity, which ensures the right to eligible customers to be
supplied with electricity of a specified quality anywhere within the territory of
Hungary at reasonable, comparable and transparent prices;
8. Distribution shall mean the transport of electricity through distribution
networks with a view to delivering it to customers, including all related
technical and economic activities with a view to transporting electricity subject
to standard quality requirements;
9. Distribution network shall mean a system of lines including supporting
structures and transformer and switching equipment used for the distribution
and transport of electricity to connection points;
10. Prepayment metering device shall mean a metering device where
electricity is supplied upon prepayment of the relevant charges;
11. Primary energy source shall mean all available renewable and nonrenewable energy sources that may be used for the transformation of energy,
containing energy in a chemically, physically or nuclearly bound form, with the
stipulation that energy sources containing energy generated by using or
transforming electricity shall not be regarded as primary energy sources;
11a. Metering period shall mean the period between two meter readings
which is set forth in an agreement and which is the basis of accounting;
12. Metering point shall mean a tariff metering point created by tariff
metering, or based on the metering system, or calculated by a specific formula
relying on measurements, where the timetable, ancillary services and tariff
metering is clearly indicated, and where the metering point can be clearly
linked to a connection point;
13. Authorised operator shall mean any person holding an effective
authorisation by the Hungarian Energy Office (hereinafter referred to as
Office) to perform activities for which authorisation is required under this
Act;
13a. Certificate of origin shall mean a document attesting the quantity of
electrical energy produced from renewable energy sources or of highefficiency co-generated electrical energy based on useful heat demand;

14. Power plant shall mean a single energy-transforming facility designed to


generate electricity from primary energy sources, including for the purposes
of authorisation power plants with an energy storage system;
15. Nominal generating capacity shall mean the sum of nominal active
capacity (in watts) of installed power generation units measured on generation
terminals within the framework of long-term planning;
16. Service location shall mean any contiguous area supplied through one
or more connection points, where the consumer uses electricity;
17. User shall mean any person buying electricity for use at his own service
location through a public utility system or a private line by means other than
resale;
18. Consumer equipment shall mean the users equipment, wire networks
and electrical installations, including their associated fittings and fixtures,
required for generating, transforming and switching electricity;
19. Disabled consumer shall mean any person receiving disability allowance
under the act on the rights and equal opportunities of disabled persons or
personal allowance for the blind, or any person whose life or health is directly
endangered by the switch-off or interruption of the electricity service;
20. Economically justifiable demand for heat and cooling shall mean the
demand that does not exceed the needs for heat or cooling and which would
otherwise be satisfied at competitive market conditions by energy generation
processes other than cogeneration of thermal energy and electricity;
21. Cross-border line shall mean a line comprising part of the transmission
network which crosses the borders of Hungary, including the relevant
transformer and switching equipment;
22. Authorised network operator shall mean transmission system operators
and distribution network operators;
23. Useful heat shall mean heat produced in a cogeneration process to
satisfy an economically justifiable demand for heat or cooling;
24. Household power plant shall mean a micro power plant connected to a
low-voltage system with an interconnection capacity of less than 50 kVA at the
connection point;
25. Horizontally integrated electricity company shall mean a company
authorised to perform at least one of the functions of the electricity industry
that is rendered subject to authorisation under this Act and engaged in another
non-electricity activity;
26. Energy from waste shall mean energy generated by using waste as fuel
in compliance with the relevant environmental protection and waste
management regulations;
26a. Information technology equipment shall mean data storage devices,
data processing devices running and serving operating systems and
applications (servers), and data processing devices using such service
(clients), as necessary for the activity of the authorised operator, including the
software ensuring the operation of the above;
27. Integrated electricity company shall mean a vertically or horizontally
integrated electricity company;
27a. Control shall mean the relationship set forth in Article 3(2) of Council
Regulation (EC) No 139/2004 of 20 January 2004 on the control of
concentrations between undertakings;

27b. Connection point shall mean the point of the private or direct line which
is designated as a property or operational boundary by the parties to the
contract concluded between the operator of the line and the purchaser;
28. Cogeneration certificate shall mean an exchangeable certificate verifying
the quantity of electricity produced by a high-efficiency cogeneration process
to satisfy the economically justifiable demand for heat or cooling in case of an
aid scheme for the fulfilment of the minimal requirement stipulated for the use
of cogenerated electricity;
28a. Affiliated undertaking shall mean an affiliated undertaking as referred to
in Article 3(2)(7) of Act C of 2000 on Accounting (hereinafter referred to as:
Szt.);
29. Cogenerated energy shall mean the simultaneous generation in one
technological process of mechanical, thermal and electrical energy;
30. Demand-side management shall mean a global or integrated approach
aimed at influencing the amount and timing of electricity consumption in order
to ensure the regulation of the electricity system and to reduce primary energy
consumption by giving precedence to investments in energy efficiency
measures, or other commercial or contractual measures;
31. Balancing supply shall mean the volume of electricity the transmission
system operator charges to the persons responsible for the balancing group in
the process of balancing the electricity system upon any positive or negative
shift in the rate schedule;
32. Micro power plant shall mean a power plant with a nominal capacity of
less than 50 MW;
33. Combined micro power plant authorisation shall mean an authorisation
for the construction of a micro power plant subject to authorisation and for the
production of electricity;
34. Low-voltage grid shall mean a network with a nominal voltage of no
more than 1 kV;
35. Outsourcing shall mean when certain segments of the activities of an
authorised operator, which are subject to authorisation under this Act, are
carried out by another person on behalf of the authorised operator;
36. Public utility system shall mean a transmission or distribution network
that is necessary for the reliable and proper functioning of the electricity
system;
37.
38. Direct line shall mean a power line, other than a public utility, private,
production or cross-border line, or a network component or transformer or
switching equipment linking the user with a power plant connected to the
public utility system;
39. Public lighting shall mean the illumination of areas defined in specific
other legislation with a view to ensuring traffic and public safety and property
security, in a systematic and controlled arrangement of lighting for a specific
period of time using electricity;
40. Public light fixture shall mean fixtures used for public lighting. Public
light fixtures are, in particular:
(a) luminaries and lamps, including fittings;
(b) support structures used solely for the purposes of public lighting;
(c) power lines used solely for the purposes of public lighting;

(d) control system used for turning public lighting on and off, and for
regulating it. In the case of multi-purpose control systems, it includes only the
module used for the public lighting system;
41. Public lighting distribution network shall mean a network for the
electricity supply of public lighting with interconnection and regulation
facilities which is owned by the distributor and is not part of the distribution
network;
42. Household customer shall mean customers purchasing electricity for
their own household consumption, excluding commercial or professional
activities, under an agreement for receiving electricity, where household
means any single service location, residential building used for housing
purposes, residential suite, resort or weekend house, as well as garage space
reserved for private use;
42a. Branch point shall mean the point of the transmission or distribution
network through which a connecting line which is part of the interconnector
connects to said network;
43. Minimum cost shall mean the justified expenditure of the authorised
operator as required for the performance of an authorised activity, or as
necessary at the level of the national economy;
44. Private line shall mean a power line, other than a public utility,
production or direct line, or a network component, or a transformer and
switching equipment, installed beyond the connection point and intended to
supply customers or purchasers linked directly or indirectly to the
transmission or distribution network;
45. Renewable energy sources shall mean renewable non-fossil and nonnuclear energy sources (solar, wind, geothermal, wave, tidal, hydropower,
biomass, and energy sources produced directly or indirectly from biomass, as
well as landfill gas, sewage treatment plant gas and biogases);
45a. Timetable shall mean a series of data on average electricity output for a
given calendar day in tariff metering time units set forth in the commercial
code;
46. Balancing group shall mean a system of reimbursement/settlement
designed to cover supply/demand balance and to carry out the related
functions, and to govern the related liabilities, comprised of one or more
members;
47. National Action Plan shall mean a plan concerning the shares of
renewable energy used in transport, electricity consumption, heating and
cooling in 2020 taking the effects of other energy-efficiency measures on
final energy consumption into account and containing target values for
Hungary and enforceable measures for reaching such target values;
48. Interconnected electricity system shall mean a minimum of two
electricity systems connected by one or more interconnecting lines, where at
least one of them is located within the territory of Hungary;
49. Customer connection system shall mean the unmetered part of an
internal network following the connection point at a property used by several
customers, which is not owned by the authorised distribution network
operator;
49a. Profile shall mean a normalised graph on the annual electricity output
demand of consumers for an annual consumption of 1000 kWh, prepared on
the basis of statistical analysis;

50. Network user shall mean a person who is linked directly or indirectly to
the public utility system for the purpose of injecting into or withdrawing
electricity from the system;
51. Grid control shall mean all targeted activities for ensuring the seamless
and safe operation of the electricity system and the balance of performance, as
well as the availability of international interconnections;
52. Interconnecting line shall mean a cross-border line comprising part of a
the transmission network, linking the networks of interconnected electricity
systems;
53. Ancillary services shall mean all the services provided by the
transmission system operator to ensure supply/demand balance within the
electricity system and to maintain the quality of transmission;
54. Wind turbine shall mean a device designed for the harnessing of wind
power for electricity production;
55. Wind farm shall mean a collection of wind turbines operated by the same
customer or authorised operator, which are linked to the transmission or
distribution network at the same connection point;
56. Regulated electricity market shall mean a trading system operated by the
authorised operator of the regulated electricity market for the facilitation of
regional electricity traffic, where trade in electricity and related transactions are
conducted in a standardised form;
57. Generation shall mean the production of electricity;
58. Producer shall mean a person generating electricity;
59. Authorised producer shall mean a person holding an operating licence
for the generation of electricity or a combined micro power plant authorisation;
60. Production line shall mean any power line other than public utility,
private and direct lines, and any network component or transformer and
switching equipment, which is used to deliver electricity generated by a power
plant to the connection point of the public utility system, and to which no user
or purchaser is connected;
61. Resale shall mean the selling of electricity purchased by the user within
a single service location to purchasers through a metered private line;
62. Malfunction shall mean any unplanned event in operations, causing
unintended changes in prearranged procedures, such as in the production,
transmission and distribution of electricity;
63. Standard service agreement shall mean a document containing the
authorised operators standard terms and conditions, which has been
approved by the Office;
64.
65. Vertically integrated electricity company shall mean an electricity
company or group of companies to the control of which the same person or
persons are entitled directly or indirectly, and where the electricity company or
group of companies is performing transmission system control or distribution
and at the same time performs or is authorised to perform at least one of the
functions of the generation or trading of electricity. The person or persons
directly controlling the abovementioned electricity company or group of
companies shall be regarded as parts of the vertically integrated electricity
company;

66. Vulnerable customers shall mean those household customers who


require special attention due to their social disposition defined in legislation, or
some other particular reason, in terms of supplying them with electricity;
66a. Purchase location shall mean a contiguous territory supplied through
one or more connection points, where the purchaser uses the total amount of
the purchased electricity;
66b. Purchaser shall mean persons other than users who purchase
electricity via private lines from users through resale or via direct lines from
producers exclusively for own use;
67. Electricity Supply Codes shall mean a set of operational regulations
containing the rules, procedures and methods pertaining to the functions of
the electricity system, trade regulations containing the mandatory content
elements of commercial agreements, contracts concluded for tariff metering
and for the exchange of data, the terms of international commerce and the
main terms regulating ancillary services and the operation of the regulated
electricity market, as well as the distribution network operators regulations
concerning distribution network operations;
68. Electricity company shall mean a business association under Article
685(c) of the Civil Code, or a foreign undertaking registered in another Member
State of the European Union or a state party to the agreement on the European
Economic Area, including its branch registered in Hungary, which is engaged
in activities that are subject to authorisation in accordance with this Act;
69. Trade in electricity shall mean for-profit business operations involving
the buying and selling of electricity and the related capacity for purposes other
than own use;
70. Electricity system shall mean the power plants and networks operated
by the transmission system operator in accordance with the principles of the
Electricity Supply Codes and in cooperation with the distributors performing
the functions specified by law;
71. Electrical installation shall mean power plants and transmission and
distribution networks;
72. Green certificate shall mean an exchangeable certificate verifying the
quantity of electricity produced by energy from renewable energy sources in
case of an aid scheme for the fulfilment of a minimal requirement for using
electricity produced by energy from renewable energy sources;
74. Separately managed institute shall mean a central budgetary body, a
budgetary institute of a central budgetary body, local governments, budgetary
institutes of local governments, and other non-profit institutions receiving
normative state subsidy and performing public functions.
Vhr. Article 1(1) For the purposes of this Decree:
1. Accounting invoice shall mean an invoice issued during the term of an
agreement on network access or electricity purchase, which relates to the given
metering period and contains the accounts as a multiple of the actual consumption
between the first and final metering data of the metering period and the rate for the
specific zone periods or for one tariff period in case of periodical tariffs;
2. Power plant unit shall mean technically independent equipment (boiler, engine
and generator, or engine and generator, hereinafter jointly referred to as: main
equipment) or group of equipment, which constitutes a technologically independent
unit connected to the electricity network and suitable for generating electricity using
primary energy sources or electricity cogenerated with heat;

2a. Payer shall mean the person who undertakes the payment of the price of the
electricity used at the service location as well as the network access fee and ancillary
charges in the framework of a payment agreement;
2b. Consumption meter shall mean the metering equipment used for metering
electricity consumption, including supplementary devices;
3. Medium voltage shall mean a nominal voltage above 1 kV and not exceeding 35
kV;
45.
6. Contracted supply shall mean the active power expressed in kW which was laid
down in relation to a given connection point in the network access contract concluded
between the authorised network operator and the network user;
78.
9. Balancing group representative shall mean an authorised operator, operator of
a micro power plant not subject to authorisation, or user, who performs the duties
relating to the balancing group as laid down in the Commercial Code;
10. Metered private line shall mean the section of the private line metered by the
authorised network operator;
10a. High voltage shall mean a nominal voltage exceeding 35 kV;
11. Test run shall mean the last stage of commissioning, the purpose of which is to
attest that during its operation the power plant unit will meet the criteria laid down in
legislation, official resolutions and in the Electricity Supply Codes in respect of
uninterrupted and appropriate operation;
12. User subject to profile-based settlement of accounts shall mean a user who is
supplied through the low-voltage network, and who does not have a remotely
accessible consumption meter suitable for the registration of a load-duration curve;
13.
14. Available power shall mean the apparent capacity value expressed in kVA, up
to the amount of which network capacity is provided by the authorised network
operator at a given connection point;
14a. Interim invoice shall mean an invoice issued at regular intervals for users
within the metering period and based on the quantity of electricity calculated on the
basis of statistical analysis or data provision;
15. Producers permit shall mean an operational permit for the generation of
electricity and the combined micro power plant authorisation;
16. Operational incident shall mean a change of state or intervention in the
operation of the electricity system;
16a. Final invoice shall mean an invoice issued for the user after the expiry of the
agreement on network access or electricity purchase, which is based on the multiple
of the consumption in the given period as indicated by the meter index and the tariffs
assigned to zone periods;
17. Energy service shall mean an activity or procedure provided on the basis of a
contract which leads to the improvement of energy efficiency or primary energy
savings in respect of a building, group of buildings, industrial operation or
establishment, or private or public service, which can be attested, measured or
estimated, including the operation, maintenance and control necessary for rendering
the service;
18. Energy audit shall mean a proceeding by which relevant information can be
obtained in respect of the current energy consumption profile of a building, group of
buildings, industrial operation or establishment, or a private or public service, and

which determines and quantifies cost-effective energy saving options and records
their results;
19. Energy-efficiency shall mean the quotient of energy output and energy input;
20. Measures for improving energy efficiency shall mean measures which lead to
an improvement of energy efficiency which can be attested, measured or estimated;
21. Programmes for improving energy efficiency shall mean all the measures for
improving energy efficiency pertaining to individual user groups.
(2) Terms not included in paragraph (1) shall be interpreted according to Article 3 of
Act LXXXVI of 2007 on Electrical Energy (hereinafter referred to as: VET).
Chapter II
PRODUCTION OF ELECTRICITY
Generation
VET Article 4 (1) Electricity may be generated in power plants with a nominal
capacity of 50 MW or more in possession of an operating licence for the
generation of electricity, or in micro power plants with a nominal capacity of
0.5 MW or more in possession of a combined micro power plant authorisation.
(2) A producer shall be authorised to sell under the authorisation referred to
in paragraph (1):
(a) the electricity of his own production,
(b) the electricity received from the transmission system operator within the
framework of ancillary services,
(c) the electricity received under Article 13(1) under the purchase obligation
regime.
(3) Producers supplying electricity directly to users shall be treated as
electricity traders supplying electricity directly to users, with the exception of
the obligation for requesting an operating licence pertaining to trade in
electricity.
(4) In connection with any production of electricity that is subject to
purchasing obligation under specific other legislation, the producer shall be
entitled to sell only the electricity of his own production, less own
consumption calculated according to the said specific other legislation, in the
purchasing obligation regime.
VET Article 4/A Secure and uninterrupted electricity supply to consumers
shall be of priority public interest.
VET Article 5 (1) Authorised producers shall offer their available generation
capacity to the extent required for providing the ancillary services prescribed
in the Electricity Supply Codes, and may not withhold such capacity or cut
back on their production of electricity unjustifiably. The Office shall construe
the actions of an authorised producer as unfounded withholding, in particular,
if:
(a) withholding did not occur as a result of malfunction or any shortage of
primary energy sources;
(b) it does not qualify as a suspension of activities in accordance with Article
74(1)(a) to (b); or
(c) withholding did not occur as a result of changes in environmental or
efficiency requirements pertaining to production equipment.

(2) Where the power plant is shut down because the prevailing market price
fails to cover its specific variable operating costs, this shall not be construed
as undue withholding of production.
(3) The transmission system operator shall have powers to request any time
under the principle of minimum cost to have serviceable production
equipment connected to the network, if guaranteeing to cover the costs of
powering up and operating the equipment. If the relevant costs are covered the
request may not be refused.
(4) In connection with any undue withholding the Office may impose the
sanctions specified in Article 96(1)(a) to (b), and shall adopt a resolution to
determine the power generating capacity to be offered.
(5) Micro power plants may fulfil the offering obligation referred to in
paragraph (1) jointly as well, in accordance with the operating code. Detailed
rules shall be included in the Electricity Supply Codes.
VET Article 6 (1) Operators of power plants with a nominal capacity of 50 MW
or more, and generating electricity from non-renewable energy sources shall
be required to maintain supplies of energy sources under the conditions set
out in specific other legislation.
(2)(3)
VET Article 6/A (1) At the request of the producer the Office shall issue a
certificate of origin in order to inform consumers, and shall ensure the
electronic registration of certificates of origin.
(2) If the certificate of origin is issued in order to check the eligibility to
participate in the purchase obligation regime, Article 12(1) shall apply.
Establishment of New Generation Capacities
VET Article 7 (1) Subject to the exception set out in paragraph (2), any person
shall be entitled to set up new generation capacity at its own business risk
under the conditions set out in this Act and in specific other legislation.
(2) With a view to ensuring the governance and secure operation of the
electricity system, and in light of the limited technical means wind turbines and
wind farms apart from household micro power plants and micro power plants
which are not linked up with any electrical installation may be established by
way of invitation to tender issued in accordance with the conditions set out in
the ministerial decree on the conditions of invitations to tenders for the
establishment of wind turbine capacities, the minimum content requirements of
tenders, and the rules of the tender procedure.
(3)
(4) The tender notice shall convey detailed instructions for tenderers to follow
and on the tender evaluation criteria.
(5) In the process of the construction of new generation capacities using
renewable energy sources, the authorised network operators shall under the
conditions and to the extent specified in specific other legislation and the
relevant resolution of the Office bear the costs of technical adaptations to the
public utility system, such as grid connections and grid reinforcements, which
are necessary in order to integrate such new producers into the distribution
and transmission network. The Office shall regulate network access fees taking
the above-specified costs borne by the authorised network operators into
consideration to a reasonable extent.

VET Article 8 (1) The Office may issue a call for tender under the conditions
laid down in specific other legislation and with the contribution of the
transmission system operator for the construction of a power plant or for the
implementation of demand-side management measures, provided that the
volume of electricity available in the country under market conditions is
insufficient to meet the foreseeable long-term future electricity demand of
users, and if necessary to promote environmental objectives or the
introduction of new technologies featuring better efficiency in terms of energy
consumption.
(2) The Office may issue the call for tender referred to in paragraph (1) only if
the authorisation procedure, generation capacities established upon the
investors initiative, and the demand-side management measures adopted are
according to projections inadequate to meet existing demands for electricity.
(3) When issuing the call for tender referred to in paragraph (1), the Office
shall take the following factors into consideration: data supplied by the
transmission system operator under Article 16(b) and all applications
submitted for authorisations to design and construct power plants, increase
capacity, or make expansions thereof, or applications for operating licences
relating to electricity generation, as well as the foreseeable impact of demandside management measures.
(4) The Office must take into account the criteria set out under Article 78 in
connection with the tender referred to in paragraph (1).
(5) The calls for tenders referred to in paragraph (1) shall be published in the
Official Journal of the European Union and on the official website of the Office
at least six months prior to the planned deadline of the submission of tenders.
(6) The call for tender shall convey detailed instructions for tenderers to
follow and on the tender evaluation criteria.
(7) The authorised network operator shall allow the implementation of
network improvements following the tender referred to in paragraph (1), and
shall cooperate with the person carrying out the improvements.
Facilitating the Generation of Electricity Produced from Energy from Renewable
Sources and Waste
VET Article 9 (1) With a view to protecting the environment and nature,
ensuring the supply of users, saving primary energy, and expanding the range
of available energy sources, the use of renewable sources and waste as an
energy source shall be promoted.
(2) To promote the use of renewable energy sources and waste as an energy
source, this Act and specific other legislation adopted under authorisation by
this Act shall lay down the foundation for a differentiated purchasing obligation
regime in consideration of energy sources, generation procedures, nominal
generating capacity, the efficiency and effectiveness of energy conversion
processes, and the date of construction of power plants.
VET Article 10 (1) The Government shall lay down the detailed regulations for
the purchasing obligation regime referred to in Article 9 taking into account the
following:
(a) the purchasing obligation regime for electricity generated from renewable
energy sources or from waste shall ensure long-term predictability and shall be
consistent with energy policy principles;

(b) the purchasing obligation regime shall decrease the competitive


disadvantage occurring during the sale of produced electricity by maintaining
market competition among producers;
(c) the purchase price of electricity subject to purchasing obligation, its
volume and the duration of the purchasing obligation shall be determined in
due consideration of the average payback periods of the various generation
technologies, the efficiency of using specific energy sources in relation to the
countrys natural resources, the ability of users to absorb hardship and the
higher rate of efficiency brought about by technological development, and the
impact the said technology is likely to have on the electricity system and
technological characteristics;
(d)
(e) in accordance with specific other legislation, with a view to ascertaining a
solid economic and legal background, the purchasing obligation shall apply
from the commencement of electricity generation under a specific project and
shall remain in effect for the duration specified in accordance with paragraph
(c).
(2) In light of the criteria set out in paragraph (1), the purchasing obligation
regime relating to electricity may not be used to promote:
(a)(b)
(c) the production of electricity from lumber-grade or higher grade logs as
energy sources, gained by way of unauthorised logging operations according
to Act LIV of 1996 on Forests and the Protection of Forests (hereinafter referred
to as: Forest Act), or by way of authorisation granted under the Forest Act, with
the exception set out in Article 171(6).
(3) The provisions governing the purchasing obligation pertaining to
electricity produced by wind turbines and wind farms shall be determined
without prejudice to paragraph (1), separately, in light of the limited technical
means of ancillary services.
(4) Producers of electricity subject to purchasing obligation shall be required
to enter into a balancing group agreement according to the transmission
system operators standard service agreement, and join the balancing group
created by the transmission system operator for accounting concerning the
electricity subject to purchasing obligation. This balancing group shall be
balanced by the transmission system operator.
Facilitation of the Generation of Electricity from Renewable Sources and Waste and
Electricity Produced in a Cogeneration Process
Vhr. Article 2 In order to enforce the provisions in Article 10(1) of the VET the
Hungarian Energy Office (hereinafter referred to as: Office) may require the
submission of the manufacture documents of equipment. Equipment the year of
manufacture of which was more than five years before the year in which the
application for the permit was submitted shall be regarded as used.
VET Article 11 (1) The purchasing obligation defined according to the criteria
under Article 10 may be carried out:
(a) at market prices;
(b) at a price specified in this Act or in specific other legislation.
(2) The purchase price specified in point (b) of paragraph (1) of electricity
subject to purchasing obligation shall be expressed in units of HUF/kWh, in
compliance with Article 171(3) to (4).

(3) The purchase price of electricity subject to purchasing obligation, and the
terms and conditions of purchase shall be decreed by the Government. The
quantity of electricity subject to purchasing obligation and the duration of the
purchasing obligation shall be determined by the Office according to statutory
conditions. The purchase price of electricity subject to purchasing obligation
may be determined in compliance with paragraph (2) separately for each
energy source and each generation procedure, and the amount thereof my
differ according to power generating capacity.
(4) The purchasing obligation referred to in point (b) of paragraph (1) may be
maintained maximum for the payback period of a specific project at a specific
purchase price.
(5) The quantity of electricity subject to purchasing obligation and the
duration of the purchasing obligation shall be determined net of state
subsidies, and orders for waste management services determined according to
the Act on Environmental Protection Product Charges.
(6) The subsidies referred to in paragraph (5) are, in particular, investment
aid, tax exemptions, and the profit resulting from savings in emission
allowance units through increasing the quantity and share of renewable energy
sources, where the emission allowance units were obtained free of charge in
accordance with the Act on Greenhouse Gas Emission Allowance Trading. The
aid for the restructuring of the coal industry and the costs of transition referred
to in Article 147(1) need not be taken into account.
VET Article 11/A The Office shall revise the implementation of the objectives
laid down in the National Action Plan in respect of production at least every
two years, and shall prepare a publicly available report thereon, and shall
prepare a proposal for the Government which shall cover the provisions of
Article 11(2) if necessary.
Vhr. Article 3
VET Article 12 (1) At the producers request the Office shall verify the quantity
of electricity and useful heat generated from renewable energy sources or
waste and the primary energy sources used for the cogeneration process.
(2) If a producer selling in the framework of the purchasing obligation regime
referred to in Article 11(1)(b) and using renewable and non-renewable energy
sources concurrently applies an accounting system other than what is
stipulated in specific other legislation, such producer shall repay the extra
revenue from the difference between the market price and the regulated
purchase price, and the Office shall have powers to impose the sanctions
specified in Article 96(1).
(3) The Office shall prepare a report annually on the generation of electricity
from renewable energy sources and on electricity produced in a cogeneration
process, and on the annual trends in the purchasing obligation regime. The
Office shall publish this report on its official website.
VET Article 13 (1) Electricity traders (including providers of universal
services) and authorised producers supplying electricity directly to end users
shall be required according to the provisions of specific other legislation to
purchase electricity that is subject to purchasing obligation consistent with the
quantity of electricity they sell to end users, and to enter into an agreement
with the transmission system operator to this effect. Users engaged in the
importation of electricity shall be required according to the provisions of
specific other legislation to purchase electricity that is subject to purchasing

obligation consistent with the quantity of electricity they use for own
consumption, and to enter into an agreement with the transmission system
operator to this effect.
(2) Electricity generated by household power plants shall be procured
according to the provisions of specific other legislation by the electricity trader
that supplies electricity at the connection point in question.
Special Provisions Pertaining to Connecting Household Power Plants to the
Network and Network Use
Vhr. Article 4 At the request of the operator the electricity trader selling at a given
connection point or the provider of universal services shall purchase the electricity
produced by the operator of the household power plant.
Vhr. Article 5 (1) The available capacity of household power plants shall mean the
power generating capacity expressed in kVA.
(2) Household power plants may be established and operated at a given connection
point up to the capacity available to the user at the same connection point without the
amendment of the network connection agreement, or up to a capacity exceeding the
available capacity but not exceeding the capacity referred to in Article 3(24) of the
VET with the amendment of the network connection agreement, in accordance with
the detailed rules laid down in specific other legislation on connecting to the network
and in the Distribution Code and in the standard service agreement of the distributor.
(3) The user shall inform the distributor with whom the user has established a legal
relationship about his intention to commission a household power plant in a written or
electronic claim containing the basic technical data of the household power plant.
(4) In the claim pertaining to the establishment or operation of a household power
plant the user must make a statement on whether he intends to inject electricity into
the public utility system, or the sole purpose of electricity generation is to cover his
own electricity consumption. The technical specifications of the network connection
must be specified by taking the above statement into account.
(5) If the household power plant injects electricity into the public utility system at the
given connection point, the electricity trader or the provider of universal services
being in a legal relationship with the operator of the household power plant as a user
shall apply monthly, semi-annual or annual balance accounting, as agreed on by the
parties, in respect of the total electricity injected into the network and the total
purchased electricity per metering period.
(6) If electricity has been injected into the distribution network according to the
balance of electricity quantities purchased and injected in the metering period, the
quantity of injected electricity shall be accounted at the average product price of
electricity sold by the electricity trader being in a legal relationship with the operator
of the household power plant to the operator as a user according to the
agreement on electricity purchase.
(7) The costs of the consumption meter shall be borne according to the rules
pertaining to users up to a capacity of 3 x 16 A, and according to the rules pertaining
to power plants above this capacity.
(8) Further provisions pertaining to the connection and operation of household
power plants shall be included in supply codes and the standard service agreements
of authorised network operators; further rules pertaining to the accounting of
electricity sales shall be included in the standard service agreements of traders.
Chapter III

COMMON PROVISIONS ON TRANSMISSION SYSTEM CONTROL,


ELECTRICITY DISTRIBUTION AND AUTHORISED NETWORK OPERATORS
Title 1
Transmission System Control
VET Article 14 Within the framework of performing transmission and system
control simultaneously (hereinafter referred to as: transmission system
control) the responsibilities of the transmission system operator shall include
the following:
(a) ensuring that the electricity system functions smoothly and safely, and
balancing the electricity system,
(b) providing for the operation, maintenance and improvement of the
transmission network
(c) transmitting electricity at a standard quality, and
(d) operation, maintenance and improvement of instruments necessary for
transmission system control.
VET Article 15 The transmission system operator shall discharge the duties
conferred upon him in this Act and in Regulation (EC) No 714/2009 of the
European Parliament and of the Council of 13 July 2009 on conditions for
access to the network for cross-border exchanges in electricity and repealing
Regulation (EC) No 1228/2003 (hereinafter referred to as: Regulation (EC) No
714/2009) in a manner that is transparent, objective and non-discriminatory.
VET Article 16 The responsibilities of the transmission system operator in
connection with the security of electricity supply and the operation of the
transmission and distribution networks shall include the following specific
duties:
(a) manage the electricity system and keep it operational at all times,
including international relations,
(b) collect and supply information as required for the operation and
improvement of the electricity system and for the continuous and secure
supply of electricity,
(c) collect and provide data to the Office concerning prices related to
authorised transmission system control operations in the manner specified in
specific other legislation and in the Electricity Supply Codes, with a view to
ensuring the fulfilment of Hungarys international commitments,
(d) operate the balancing group system, make arrangements for settlement
between the balancing groups and the transmission system operator;
(e) take part in the preparation of tenders specified in Articles 26 and 26/A for
the improvement of the transmission network, and of the distribution network
specified in the Operating Code influencing the operation of the transmission
network (hereinafter referred to as: distribution network influencing
transmission conditions),
(f) coordinate and schedule prearranged maintenance work in power plants,
distribution and transmission networks with a view to keeping the electricity
system operational at all times;
(g) calculate and procure generating capacity to the extent required for
providing the ancillary services specified in the Operating Code, to provide

ancillary services and charging for such services in accordance with the
Operational and Commercial Codes,
(h) cooperate in the performance of transactions on the regulated electricity
market,
(i) contrive and order the measures required for maintaining the cooperative
capacity of the electricity system, including measures taken in the event of any
major breakdown or malfunction in the electricity system, or the limitation or
suspension of transmission, distribution and supply to consumers,
(j) plan and manage the transmission network and the distribution network
influencing transmission conditions in addition to maintaining the capacity
balance,
(k)(l)
(m) coordination of duties arising from the interoperability of European
systems and conferred upon Hungary,
(n) provide connection and access to the transmission network and
information relating thereto,
(o) coordinate demand-side management measures as specified in the
Electricity Supply Codes,
(p) pay all charges relating to the transmission network, fulfil payments
stipulated in the framework of the inter-transmission system operator
compensation mechanism under Article 13 of Regulation (EC) No 714/2009 and
Commission Regulation (EU) No 838/2010 of 23 September 2010 on laying
down guidelines relating to the inter-transmission system operator
compensation mechanism and a common regulatory approach to transmission
charging (hereinafter referred to as: Regulation (EU) No 838/2010), as well as to
collect and account revenues received by the transmission system operator
within this framework and charges imposed for congestion management.
(q) monitor compliance on a regular basis concerning the provision of the
financial guarantees prescribed in the Government Decree on the
implementation of certain provisions of the Act on Electrical Energy
(hereinafter referred to as: Vhr.), and to notify the Office in the cases referred to
in the Vhr.
Financial Guarantee
Vhr. Article 6 (1) In order to ensure the operation of the balancing group system
and to reduce the financial credit and price risks of the arrangement of settlement
between the balancing group supervisors and the transmission system operator, the
transmission system operator must operate a financial guarantee system which
manages the performance risk of the financial positions of a given balancing group
supervisor during the accounting cycle specified in the Commercial Code.
(1a) In order to ensure the operation of the of the purchase obligation regime, the
operation of the balancing group as specified in Article 13(1) of the VET between the
person subject to the purchase obligation and the transmission system operator and
of the cogeneration balancing group, and to reduce the financial credit and price
risk of the arrangement of settlement between producer having the sales rights under
Article 171/A of the VET and the transmission system operator, the transmission
system operator shall operate a financial guarantee system, which manages the
performance risk of the financial positions of the person obliged to purchase and the
producer authorised to sell electricity during the accounting cycle specified in
legislation.

(2) The transmission system operator must establish its system for financial risk
management in a way that is suitable for the reception of other liquid assets referred
to in Act CXX of 2001 on the Capital Market in addition to scriptural money, for the
facilitation of the liquidity of the transmission system operator, for decreasing the
relevant costs of the person subject to the obligation to provide a financial guarantee
and for the minimisation of the financial risk arising from the difference between the
registered and actual market value of the financial guarantee in case of non-fulfilment
by market participants.
(3) The transmission system operator shall lay down the detailed rules of receiving
financial guarantees in its standard service agreement.
VET Article 17 (1) The transmission system operator shall
(a) participate in congestion management proceedings organised and
coordinated at the regional level or at the level of the interoperable European
electricity system;
(b) take the status and technical specifications of the regional and the single
European electricity system into account during the provision of cross-border
capacities and the management of congestions in the interconnecting lines;
(c) ensure that the design, development and control of the public utility
system are implemented in compliance with the technical requirements of the
European electricity system and with the operation of the regional and the
single European electricity market.
(d) represent the Hungarian electricity system in international organisations,
except for international organisations operating with the participation of the
Government or a regulatory authority;
(e) keep contact with third parties, with the Office and with foreign regulatory
authorities appointed in other Member States of the European Union to
regulate the energy market (hereinafter referred to as: foreign regulatory
authorities); and
(f) contribute to the establishment of regional markets, and shall be entitled
to establish a joint undertaking in order to facilitate the establishment of the
single electricity market.
(2) Within the framework of the representation referred to in paragraph (1),
the transmission system operator shall obtain the Offices prior consent before
entering into any agreement with significant impact on the congestion
management procedures organised and controlled at the regional level or at
the level of the interoperable European electricity system and on the
interoperability of the electricity system. The transmission system operator
shall notify the minister in charge of energy policies (hereinafter referred to as:
Minister) and the Office upon the conclusion of such agreements.
VET Article 18 The transmission system operator shall prepare status reports
on at least a half-yearly basis for the Office and the Minister, which shall
contain the output and energy consumption account of the Hungarian
electricity system, the use of primary energy sources, the availability of power
plant generation capacities at various intervals, improvements in the
transmission and distribution networks, and changes in consumption.
Vhr. Article 7 (1) The status report of the transmission system operator, as referred
to in Article 18 of the VET, shall specifically cover the measures taken in order to
coordinate demand-side management as well as the outcomes of such measures.
(2) The transmission system operator shall publish its calls for tenders for the
provision of ancillary services, for making up losses in the distribution network and for

purchasing the capacities and energy necessary to balance the balancing group for
electricity subject to purchase obligation and the affiliate balancing group on its
homepage, and shall send them directly by electronic means to the authorised
producer and user concerned, and to the electricity trader which concluded a longterm contract with the authorised producer on contracted capacities.
(3) The calls for tenders issued by the transmission system operator may pertain
only to the period specified in the Commercial Code.
(4) The calls for tenders shall include the deadline of bidding, and those
requirements and technical criteria which must be met by the tenderer.
(5) When issuing a call for tender the transmission system operator shall determine
the deadline of bidding and the date of awarding the tender in view of the starting
date of the period covered by the call for tender.
(6) If the authorised producer, the user or the trader who concluded a long-term
contract with the authorised producer on contracted capacities meets the technical
requirements laid down in the call for tenders, he shall be obliged to make an offer to
the transmission system operator.
(7) If the persons subject to the obligation to make an offer fail to fulfil their
obligation referred to in paragraph (6), the transmission system operator shall notify
the Office. If the Office finds that the statutory obligation was violated, it shall apply
the sanctions referred to in Article 96(1) of the VET.
(8) The transmission system operator shall adjudge the offers according to the
criteria laid down in the Commercial Code and in the call for tender. The transmission
system operator shall conclude a contract with the successful Hungarian or foreign
tenderers according to the sample contract contained in its standard service
agreement.
VET Article 19 (1) For the purpose of billing for the performance of contracts,
and for discharging the duties specified in Article 16 the transmission system
operator shall operate a tariff metering system and a data traffic and
communication system, which shall possess the capabilities specified in the
Electricity Supply Codes and shall comply with nationally standardised
technical requirements.
(2) The transmission system operator shall perform the quantitative
settlements specified in the relevant Operating Code for the transmission of
electricity through transmission and distribution networks.
VET Article 20 (1) Network users shall use and pay for the ancillary services
related to the purchase of electricity, specified in the Electricity Supply Codes
and provided by the transmission system operator.
(2) The transmission system operator shall purchase capacities and
electricity to the extent necessary to ensure ancillary services, to make up for
losses in the transmission network, and to balance the balancing group of
electricity subject to purchase obligation publicly, in a manner accessible to
any Hungarian or foreign producer or trader, or to any user having the
appropriate equipment.
(3) The terms of and conditions for purchasing electricity to the extent
necessary to ensure ancillary services and to make up for losses in the
transmission network shall be made public prior to the publication of the call
for tender, according to the procedure laid down in specific other legislation.
Vhr. Article 7 (1) The status report of the transmission system operator as referred
to in Article 18 of the VET shall specifically cover the measures taken in order to
coordinate demand-side management and the results of such measures. The

detailed rules of procedures for demand-side management and the duties of the
transmission system operator relating thereto shall be included in the Commercial
Code.
(2) The transmission system operator shall publish its calls for tenders for the
purchase of the capacities and electricity necessary to ensure ancillary services, to
make up for losses is the transmission network and to balance the balancing group of
electricity subject to purchase obligation on its homepage and in two national daily
newspapers, and shall send them directly by electronic means to authorised
producers and to traders who have concluded a long-term agreement with an
authorised producer on contracted capacities.
(3) The call for tender published by the transmission system operator shall cover
one year or a period shorter than one year as laid down in the Commercial Code.
(4) The deadline of bidding and the requirements and technical criteria to be met by
the tenderers shall be laid down in the call for tender.
(5) In respect of authorised producers and traders having concluded a long-term
agreement on contracted capacities with an authorised producer the transmission
system operator shall determine the deadline of bidding and the date of awarding the
tender in the annual call for tender in view of the deadline of fulfilling the tendering
obligation referred to in Article 106 of the VET.
(6) If the power plant or the trader who concluded a long-term agreement on
contracted capacities with an authorised producer meets the technical criteria laid
down in the call for tender, it shall be obliged to make an offer to the transmission
system operator.
(7) If the persons subject to the obligation to make an offer fail to fulfil their
obligation referred to in paragraph (6), the transmission system operator may notify
the Office. If the Office finds that the statutory obligation was violated, it shall apply
the sanctions referred to in Article 96(1) of the VET.
(8) The transmission system operator shall adjudge the offers according to the
criteria laid down in the Commercial Code and in the call for tender. The transmission
system operator shall conclude a contract with the successful Hungarian or foreign
tenderers.
VET Article 21 (1) With a view to ensuring the implementation of the
provisions contained in Article 16, the transmission system operator shall
operate an accounting system based on any number of metering points clearly
indicated to it and based on the system of balancing groups. The detailed
regulations for such accounting system are contained in the Commercial Code.
(2) Producers, electricity traders, providers of universal services, users, and
authorised distribution network operators shall be required to set up a
balancing group, or unless otherwise stipulated by legislation to join an
existing balancing group. The balancing group shall be represented vis--vis
the transmission system operator by the balancing group supervisor.
(3) The authorised operator of a regulated electricity market shall set up its
own balancing group. The execution of transactions which the balancing group
has notified to the transmission system operator, and which have been settled
and acknowledged by the transmission system operator may be restricted
according to Article 36 only.
(4) Every metering point shall belong to a balancing group, and may belong
to only one balancing group at any given time. A right relating to cross-border
transmission capacity as specified in the Commercial Code may be exercised
only if belonging to a balancing group.

(5) The balancing group supervisor shall enter into an agreement with the
transmission system operator and unless otherwise provided for by
legislation with the members of the balancing group according to the
provisions laid down in the Commercial Code and in the transmission system
operators standard service agreement.
(6) The balancing group supervisor shall be required to have the financial
guarantees stipulated in the relevant Government decree.
(7) Users eligible for universal services shall automatically gain membership
by operation of law in the balancing group of the authorised provider of
universal services or authorised trader in electricity with which they are
engaged under contract, and may not be compelled to conclude a balancing
group agreement. Users eligible for universal services shall gain membership
in the balancing group free of charge.
VET Article 22 The proceeds received by the transmission system operator in
connection with the activities it performs relating to the purchasing obligation
regime specified in Article 9 shall not be regarded as the transmission system
operators revenues, they may not be used for purposes other than operating
the aforesaid regime, and the transmission system operator shall keep them
separate from its other assets and separately from one another. The
transmission system operator shall record the funds held on the said isolated
account and the proceeds, less any handling charges, under liabilities. The
transmission system operator shall have the right to claim the justified
expenses incurred in connection with carrying out the above-specified
activities. Such activities may not be aimed at obtaining any commercial gain.
VET Article 23 The detailed rules for the responsibilities of the transmission
system operator shall be laid down in the operating licence and in the
Electricity Supply Codes.
Title 2
Common Provisions Relating to Authorised Network Operators
VET Article 24 (1) In order to ensure the interoperability of the electricity
system and access to the transmission and distribution networks, authorised
network operators shall:
(a) operate and maintain the transmission and distribution systems under
their control in a safe, effective and reliable way and in view of the
requirements of environmental protection and supply security,
(b) perform the maintenance, repair and renovation works and improvements
in due time in a way that the transmission and distribution network under their
control can transfer electricity on the long term, and shall maintain the required
stocks and reserves,
(c) ensure the technical conditions required for operating the transmission
and distribution network.
(2) The transmission system operator and authorised distribution network
operators shall execute the maintenance, repair and renovation works and
improvements referred to in paragraph (1)(b) in a manner to ensure the
interoperability and security of the electricity system, and in due observation of
the principle of minimum cost. Where any work is subcontracted to a natural
person or an economic operator, the transmission system operator and

authorised distribution network operators shall follow the provisions and


procedures for the selection and contracting of such natural persons and
economic operators as laid down in the Vhr. and in their internal code on
selection as approved by the Office and published by the authorised network
operator. The authorised network operator shall publish its approved internal
code on selection on its homepage.
(3) In cooperation with the transmission system operator, the authorised
distribution network operator shall manage the operation of those distribution
networks or network sections that do not affect the operation of the
transmission network.
(4) The operation of distribution networks and network sections affecting
transmission shall be managed by the distributor. In the absence of an
agreement or in the case of a divergence of opinions between the transmission
system operator and the distributor the distributor shall perform this activity
according to the instructions of the transmission system operator.
Network Operation
Vhr. Article 8 (1) The authorised network operator shall ensure the operation,
maintenance, repair, renovation and improvement of the public utility system covered
by its operating licence in the territory specified therein regardless of the ownership of
the public utility system. The obligation to carry out improvements shall be fulfilled in
such a way as to ensure the access of every network user in the territory specified in
the operating licence to the public utility system. The owner of the network
component concerned and the owner of the real estate in which the network
component is located shall enable such works and shall cooperate with the
authorised network operator.
(2) If the transmission system manager or the distributor applies a network
component owned by someone else in addition to their own equipment in order to
supply users they shall, under the agreement concluded with the owner of the
network component, pay a fee the amount of which shall be proportionate to use. In
order to include this amount in the network access fees, the Office shall on the
basis of the application submitted by the authorised network operator recognise this
amount as a justified cost during the regulation of network access fees. The
mandatory elements which must be included in the agreement concluded between
the authorised network operator and the owner of the network component or the
owner of the real estate in which the network is located shall be contained in the
Electricity Supply Codes.
(3) The authorised network operator shall consult with the authorised producer
connected to the given network section in respect of planned maintenance, repair
and renovation works and improvements affecting access to the network.
(4) The distributor shall send an annual report to the Office on the number of micro
power plants which are connected to the network and are not subject to authorisation
(household power plants shall be indicated separately), as well as on their type,
installed power and the quantity of electricity fed into and purchased from the
network.
VET Article 25 (1) With due regard to the development plans and proposals
prepared by distributors, current and expected electricity use, generation,
demand and supply, cross-border electricity traffic, the requirements of the
European electricity market, development plans for regional and Community
networks and the criteria laid down in the Vhr. the transmission system

operator shall annually prepare a network development plan for the electricity
system in respect of networks of 132 kV or higher in accordance with the
Operating Code.
(2) The network development plan shall include the components of the
transmission network to be built or renovated in the following ten years, the
developments already approved, the investments to be implemented in the
following three years, and the planned schedules of such investments.
(3) The development plan for the transmission and distribution network shall
be prepared in due observation of demand-side management and consistent
with energy policy principles relating to the promotion of generation of
electricity from renewable energy sources and waste, and electricity produced
in a cogeneration process.
(4) The Office shall approve the network development plan prepared by the
transmission system operator as referred to in paragraphs (1) and (2)
according to the criteria laid down in the Vhr. If the development plan of the
transmission system operator deviates from the development plan or proposal
of the distributor, the transmission system operator shall following a
consultation with the distributor write a statement of reasons in respect of
the deviation, and shall submit the development plan or proposal prepared by
the distributor as an annex to the Office. In accordance with its published rules
of procedure, the Office shall hold a public consultation with network users on
the network development plan, and shall publish the memorandum containing
the results of the consultation on its homepage.
(5) During the approval process the Office shall assess the compliance of the
network development plan with the Community-wide ten-year network
development plan referred to in Article 8(4) of Regulation (EC) No 714/2099. If
compliance can be doubted, the Office shall consult with the Agency for the
Cooperation of Energy Regulators established under Article 1 of Regulation
(EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009
establishing an Agency for the Cooperation of Energy Regulators (hereinafter
referred to as: Agency) in order to formulate its position. If the network
development plan fails to comply with the Community-wide ten-year network
development plan, the Office may oblige the transmission system operator to
supplement the plan provided that the compensation for losses referred to in
point 4 of Part A of Regulation (EU) No 838/2010 covers the developments
which are not included in the network development plan but are included in the
Community-wide ten-year network development plan and that these
developments are necessary in order to ensure the security of supply in the
Hungarian electricity system. If the network development plan is infringing, or
hinders efficient competition, the Office shall oblige the transmission system
operator to modify the plan, setting a deadline and indicating the reasons.
(6) The authorised network operators must carry out the developments
included in the approved network development plan. The justified costs of the
investments implemented according to the approved network development
plan shall be recognised during the regulation of prices. The Office shall
monitor and prepare an annual report on the implementation of the network
development plan.
(7) The establishment of lines which are not included in the development
plans and proposals prepared by the authorised distribution network operators

but are necessary due to new business demands shall be notified to the
transmission system operator.
VET Article 25/A The public nature of lines or equipment with a voltage of 132
kV or higher shall be decided on by the Office. Classifying or reclassifying
lines or equipment as public shall be carried out at request or ex officio in
accordance with the Vhr.
Network Development Plan
Vhr. Article 9 (1) In order to provide the basis for the network development plan for
networks of the electricity system with a voltage of 132 kV or higher (hereinafter
referred to as: network development plan) the transmission system operator shall
prepare separate analyses on the forecast of consumer demands and on the medium
and long-term capacity development of the electricity system on the sources side.
(2) In the analyses referred to in paragraph (1) the transmission system operator
shall document
(a) the evaluation of the versions prepared in the previous analysis cycle,
(b) the criteria to be considered during the given analysis cycle and the versions of
the analyses to be prepared according to such criteria, and
(c) the prepared versions.
(3) In the network development plan the transmission system operator shall
document
(a) the evaluation of the versions prepared in the previous analysis cycle,
(b) the criteria to be considered during the given planning cycle and the versions of
the network development plan to be prepared according to such criteria, and
(c) the detailed, technically equivalent versions of the network development plan,
including the state of the network with a voltage of 132 kV or higher, and a proposal
for the version to be implemented.
VET Article 26 (1) If the authorised operators fail to comply with the
obligations set out in Article 25(4), the Office may publish a call for tender for
the development of the transmission network and the distribution networks
influencing transmission conditions in collaboration with the transmission
system operator and the authorised distribution network operators affected,
according to the conditions set out in specific other legislation.
(2) The tender referred to in paragraph (1) shall be published on the official
website of the Office, at least six months prior to the deadline of the
submission of tenders.
(3) Authorised network operators shall tolerate the implementation of network
improvements according to the results of the tender referred to in paragraph
(1), and shall cooperate with the person carrying out the improvements.
VET Article 26/A (1) If by its own fault the transmission system operator fails
to commence or implement an investment according to the schedule laid down
in the network development plan and the investment is to be carried out in the
following three years under the network development plan, the Office must if
the implementation of the given investment is still justified according to the
last network development plan issue a call for tender for the implementation
of the given investment according to the criteria laid down in the Vhr.
(2) Depending on the result of the tender, the Office may require the
transmission system operator to accept one or more of the options below:
(a) financing of the given investment by a third party,
(b) implementation of the given investment by a third party,

(c) construction of the new equipment concerned by the transmission system


operator, or
(d) operation of the new equipment concerned by the transmission system
manager appointed under paragraphs (1a) and (1b) of Article 99.
(3) The tender shall be published on the homepage of the Office at least six
months prior to the deadline of the submission of tenders.
(4) In the cases referred to in points (a) and (b) of paragraph (2) the
transmission system operator shall provide the information necessary for the
implementation of the investment to the third party, shall connect the new
equipment to the public utility network and shall make all the efforts to
facilitate the implementation of the investment.
(5) The preliminary consent of the Office shall be required for the financial
agreement necessary for carrying out the options referred to in paragraph (2).
VET Article 27 (1) The transmission system operator and the authorised
distribution network operator authorised to provide connection shall provide
information on the technical and financial criteria related to satisfying network
user demand and cooperate with the network user in specifying the most
favourable manner of input and purchase.
(2) Authorised network operators may refuse connection to the transmission
and distribution network at any specific connection point due to technical
reasons.
(3) Authorised network operators, when refusing connection to the
transmission or distribution network, shall specify the conditions under which
connection may be authorised, and they shall offer an alternative connection
point if the necessary technical facilities exist or can be established.
(3a) The transmission system operator shall not refuse the connection of a
power plant to the transmission network
(a) with reference to the possible limits of network capacities in the future, or
(b) with reference to the ancillary costs of the network development that
needs to be carried out near the new connection point in order for it to be
established.
(3b) Users may connect to the transmission network only at a voltage level
higher than 132 kV.
(4) The Office, at the network users request, shall revise the lawfulness of the
refusal of access. If access was refused in violation of the statutory provisions
referred to in paragraphs (2) to (3), the Office shall adopt a resolution to order
the authorised network operator affected to allow access to the transmission
or distribution network.
(5) Where network access is provided under the conditions set out in a
specific resolution of the Office, the network user shall be liable to pay the
access charges specified in the resolution of the Office.
Conversion or Replacement of Interconnectors and Connection Points
Vhr. Article 9/A (1) The authorised network operator shall be entitled to modify an
interconnector or connection point at its own expenses, subject to the consent of the
network user, and according to network conditions and technical, economic and
safety requirements, without prejudice to the electricity supply of users and the
legitimate interest of other persons affected by the modification of the interconnector
or the connection point.

(2) At the request of the network user or the person whose rights or legitimate
interests are affected by the replacement or conversion of the interconnector or the
connection point (in this Article hereinafter referred to as: other interested person),
the authorised network operator may replace or convert the interconnector or the
connection point if the replacement or the conversion does not violate the legitimate
interest of another network user, the technical conditions of such operations are
provided for, and the network user or the other interested person if the replacement
or conversion was requested by another interested person undertakes to bear the
costs of the conversion or replacement.
VET Article 28 In order to secure supply for users connected by a customer
connection system, authorised distribution network operators shall conclude
contracts for operating the customer connection system and repairing
malfunctions under the terms of the respective standard service agreements
when so required by the operator of the customer connection system.
Title 3
Distribution of Electricity
VET Article 29 (1) Within the framework of the distribution of electricity the
responsibilities of the authorised distribution network operator shall include
the following:
(a) operating the network covered by the operating licence in a seamless and
safe manner,
(b) serving all market operators in a competitively neutral manner,
(c) transmitting electricity to users,
(d) operating, maintaining and, if necessary, developing the distribution
network of the given area.
(2) In addition to the duties referred to in paragraph (1), the distributor shall
ensure the long term ability of the distribution network to meet reasonable
demands for the distribution of electricity.
(3) The distributor must be in possession of the network, system and
operation control, tariff metering and information technology equipment
necessary for its activities and specified in its operating licence.
VET Article 30 The authorised distribution network operator shall discharge
the duties conferred upon it in this Act, such as, in particular interconnection
and access to other networks, in a manner that is transparent, objective and
non-discriminatory.
VET Article 31 The responsibilities of the authorised distribution network
operator, in connection with the security of electricity supply and the operation
of the distribution networks, shall include the following specific duties:
(a) managing the distribution network to which the operating licence pertains,
and keeping it operational at all times,
(b) transmission of electricity through the distribution networks, and
preparation of quantitative settlements as specified in the Electricity Supply
Codes
(c) drawing up a network development plan annually and submitting it to the
transmission system operator according to the procedure laid down in the
Operating Code,

(d) collecting and supplying information in collaboration with the


transmission system operator as required for the operation of the distribution
network to which the operating licence pertains, and for the continuous and
secure supply of electricity, as specified in the Business and Distribution
Codes,
(e) keeping records on household power plants in accordance with the
provisions of specific other legislation;
(f) discharging the duties set out in specific other legislation in connection
with the users declared as vulnerable customers under this Act;
(g) drawing up a report concerning developments in metering, reading and
billings systems at the intervals prescribed in the operating licence, and
consulting with the Office before any major changes in the billing system;
(h)operating permanent customer service offices with call centre and
electronic access, as well as in premises open to clients in county capitals and
metropolitan municipalities in the territory covered by the operating licence, or,
if there is no such town in the territory of operation, in the settlement in which
the most users are supplied, and
(i) ensuring the connection and access of network users to the distribution
network and providing them with information relating thereto.
VET Article 32 (1) Authorised distribution network operators shall purchase
electricity to the extent necessary to make up for losses in the distribution
network, publicly, in a manner accessible to any Hungarian or foreign producer
or trader.
(2) The terms of and conditions for purchasing electricity to the extent
necessary to make up for losses in the distribution network shall be made
public prior to the publication of the call for tender, according to the procedure
laid down in specific other legislation.
(3) Authorised distribution network operators shall be entitled to sell
electricity purchased to make up for losses in the distribution network the
amount of which exceeds the extent of the actual loss on the regulated
electricity market. Authorised distribution network operators must show the
revenue from such sales separately in their accounts. The Office shall consider
this revenue as a reducing item when determining network access fees.
(4) The activity of authorised distribution network operators referred to in
paragraph (3) shall not be regarded as trade.
Purchasing Electricity to Make up for Losses in the Distribution Network
Vhr. Article 10 (1) Authorised distribution network operators shall publish their call
for tender for purchasing electricity to make up for losses in the distribution network
on their homepage and in the manner specified in the Distribution Code.
(2) The call for tender shall include the deadline for bidding, the criteria of the
evaluation of tenders, as well as the requirements and technical conditions which
must be met by tenderers.
VET Article 33 The detailed rules for the responsibilities of the authorised
distribution system operator shall be laid down in the operating licence and in
the Electricity Supply Codes.
VET Article 33/A (1) In order to enter the service location, the authorised
distribution network operator may contact the competent notary if the network
user hinders or undermines any of the following:
(a) the reading, inspection or replacement of the consumption meter,

(b) disconnection from supply in the case of a breach of contract or


unauthorised purchase, or
(c) the inspection of consumer equipment.
(2) In his resolution the notary may set out the obligation to tolerate
(a) the reading, inspection or replacement of the consumption meter,
(b) disconnection from supply or
(c) the inspection of consumer equipment,
and may to this end stipulate cooperation with the authorised distribution
network operator.
Article 33/B The authorised distribution network operator must transfer the
metering data of a network user to the electricity trader holding that network
users statement of consent.
Public Lighting
VET Article 34 (1) The person liable to provide public lighting services under
specific other legislation, and the person assuming this obligation (hereinafter
referred to collectively as: person liable to provide public lighting services)
shall be entitled to install and operate public light fixtures on the support
structures and other suitable facilities of the distribution network. In this
respect, the authorised distribution network operators shall tolerate it and shall
cooperate with the person liable to provide public lighting services. Authorised
distribution network operators shall not be entitled to demand any financial
award for the toleration and cooperation prescribed in this provision, apart
from the public lighting distribution fee.
(2) A public lighting distribution fee shall be paid for the use of the public
lighting distribution network, which shall cover the expenses of authorised
distribution network operators deriving from public lighting.
(3) The territory of a local government shall be treated as a service location
supplied through a single connection point for the purposes of the calculation
of the network access fee payable in relation to public lighting, regardless of
the number of connecting and metering points involved.
(4) Issues relating to the installation and operation of public light fixtures on
the distribution networks supporting structures and other facilities shall be
addressed in the contract concluded between the authorised distribution
network operator and the person liable to provide public lighting services. In
the major clauses of the contract the authorised distribution network operator
may not install terms which are discriminatory as to the authorised trader from
whom the person liable to provide public lighting services intends to purchase
electricity.
(5) Unless the parties agree otherwise, authorised distribution network
operators may not engage in any further activities relating to the installation
and operation of public light fixtures referred to in paragraph (1) which are not
transferred to the ownership of the authorised distribution network operator,
apart from the requirement of toleration and cooperation.
(5a) The public lighting distribution network shall be operated, maintained
and improved by the authorised distribution network operator.
(6) The minimum content requirements for the contracts referred to in
paragraph (4), and the detailed regulations relating to public lighting services
shall be decreed by the Government.

Public Lighting
Vhr. Article 11 The mandatory content requirements of the contract settling issues
relating to the installation and operation of public light fixtures on the distribution
networks supporting structures and other facilities (hereinafter referred to as:
contract on the use of public lighting) shall be contained in Annex 3 to this Decree.
Chapter IV
NETWORK ACCESS
VET Article 35 (1) Authorised network operators shall provide access to the
transmission and distribution networks they control to network users in
exchange for the network access fee specified in Article 142, subject to
contracting obligation, for the transmission of electricity.
(2) The conditions of access to transmission and distribution networks may
not be discriminatory, may not provide grounds for abuse, may not contain
unreasonable restrictions or jeopardize the security of supply and the
prescribed quality of services. Giving the priority referred to in paragraph (3)
shall not be considered to constitute a breach of the principle of equal
treatment.
(3) Authorised network operators, subject to the conditions laid down in
specific other legislation, shall give priority to electricity producers using
technologies free of emissions of carbon dioxide or using renewable energy
sources or waste or producing electricity in a cogeneration process in
connection with the operation of and access to networks.
(4) In order to accelerate the connection of household power plants to the
network, the authorised distribution network operator shall conclude
agreements on connection and network use up to the capacity specified in
legislation on the financial and technical terms and conditions for connection
to the public utility electricity network in accordance with the provisions of the
Vhr. pertaining to users.
(5) Household power plants may be installed on one connection point per
service location.
(6) The detailed technical requirements and other rules of network access,
and the rules of procedure of publishing free network capacities available shall
be included in the Electricity Supply Codes, subject to the technical criteria of
the network codes referred to in paragraphs (6) and (7) of Article 8 of
Regulation (EC) No 714/2009.
VET Article 36 (1) The transmission system operator may refuse access to the
transmission network and to the distribution network affecting the operation of
the transmission network in accordance with the conditions laid down in
specific other legislation and in an objective, transparent and nondiscriminatory manner, or may limit, reduce or suspend contracted supplies.
Service may be limited, reduced or suspended in advance, or during the
operation of the electricity system in the following cases:
(a) in the event of extraordinary network conditions,
(b) in the event of any endangerment of life or property,
(c) in the event of a shortage of network capacity, generating capacity or
electricity transported across borders,

(d) in the event of any malfunction in the interoperable electricity system or


the electricity system,
(e) in the event of any imminent danger in terms of the provision of ancillary
services or the governance of the system,
(f) the electricity is imported from installations the operation of which directly
or indirectly endangers or may endanger persons residing in the territory of
Hungary, their property, or the natural environment,
(g) the importation of electricity is disadvantageous for the generation of
electricity from renewable energy sources or waste as an energy source, and
the cogeneration of electricity,
(h) in order to carry out maintenance and renovation work, and connections
that cannot be performed in any other way.
(2) Authorised distribution network operators may refuse access under the
conditions laid down in specific other legislation to the distribution network
that does not affect the operation of the transmission network in an objective,
transparent and non-discriminatory manner, or limit, reduce or suspend
contracted supplies. Service may be refused, limited, reduced or suspended in
advance, or during the operation of the electricity system in the following
cases:
(a) in the event of extraordinary network conditions,
(b) in the event of a shortage of necessary network capacities,
(c) in the event of any endangerment of life or property,
(d) in the event of any malfunction in the electricity system,
(e) in order to carry out works and connections that cannot be performed in
any other way,
(f) if electricity is purchased without the conclusion of an agreement on
network access, network use or electricity purchase,
(g) in the event of receiving electricity by means other than contracted,
following prior consultation as specified in the standard service agreement,
noting that as regards the actions of the electricity trader for disconnecting a
household customer from electricity service, and reconnecting a household
customer following payment of debts, the provisions of Article 47(7) to (9) shall
also apply to the proceedings of authorised distribution network operators as
appropriate, or
(h) the user receives electricity from a direct line at the same time as using
the public utility system.
(3) Authorised distribution network operators may limit or suspend services
through the distribution network if so instructed by or upon the prior consent
of the transmission system operator, according to the procedures laid down in
the Electricity Supply Codes.
(4) Where any suspension of service is scheduled due to maintenance works
or improvements, the authorised network operator in question shall, in the
manner described in specific other legislation, inform in advance and in writing
the users and authorised operators affected regarding the starting time and
planned duration of the suspension.
(5) The parties affected shall be notified in the manner and within the time
limit specified in the Electricity Supply Codes concerning the refusal of access
to transmission and distribution networks, the limitation or reduction of
contracted supplies, or their suspension by ways other than described in
paragraph (4).

(6) Contracts for the sales of electricity may be performed in compliance with
the transmission system operators decision referred to in paragraph (1).
(7) Detailed regulations concerning the refusal of access to transmission and
distribution networks and the limitation or suspension of transmission and
distribution shall be specified in the Electricity Supply Codes.
(8) The Office shall investigate, upon the network users request, whether the
conditions specified in paragraphs (1) and (2) for refusal prevail. If according to
the Offices conclusion refusal was unsubstantiated, it shall adopt a resolution
to order the authorised network operator in question to provide access to the
transmission or distribution network.
Cases of Exemption from the Rules of Access
VET Article 37 (1) Investors may lodge a request to the Office for exemption
from the provisions contained in Article 36 in connection with the installation
of new interconnecting lines. The Office may grant the exemption for a specific
period, for the whole of the new interconnecting line or for a part of it if the
conditions set out in Article 17 of Regulation (EC) No 714/2009 are met.
(2) The condition set out in Article 17(1)(f) of Regulation (EC) No 714/2009
shall not be considered satisfied in particular if the requesting party is a
member of an integrated electricity company, where any member of this
company had been identified by the Office as an authorised operator with
significant market power.
Exemption from the Rules of Access
Article 11/A In order to facilitate the assessment of requests for exemption
submitted in relation to interconnecting lines, the transmission system operator must
deliver an opinion to the Office on the public utility system during the proceeding
carried out by the Office in its competence stipulated in Article 37(1) of the VET. The
transmission system operator shall inform the Office about its opinion within 30 days
after the receipt of the Offices request.
Chapter V
DIRECT LINES, PRIVATE LINES
VET Article 38 (1) Any person shall be entitled to set up a new direct line at its
own business risk to provide electricity supply for own use or for its affiliate
companies, but such persons must obtain the authorisation prescribed in this
Act in advance. In the event of any malfunction or emergency situation the
operators of direct lines must cooperate with authorised operators and must
follow their instructions.
(2) Purchasers shall not be entitled to receive electricity from both the direct
line and the public utility system.
(3) If a purchaser connects directly to the public utility system in addition to
an indirect power plant connection, he shall be required to agree with the
authorised network operator and the operator of the direct line on the following
prior to the conclusion of the network use agreement:
(a) the conditions of transition from the use of the direct line to the use of the
public utility system, or

(b) the conditions of transition from the use of the public utility system to the
use of the direct line.
VET Article 39 (1) Private lines may be set up by users directly connecting to
the public utility system within their own service locations for the following
purposes:
(a) in order to supply electricity for own use,
(b) in order to supply electricity to the users affiliate companies, or
(c) In order to supply electricity to purchasers or other users the activities or
generation processes of whom relate to the activities or generation processes
of each other due to technical and safety reasons.
(2) Only those persons shall be entitled to electricity oft-take on private lines
for household purposes who are in an employment relationship or other legal
relationship for work with the owner of the private line.
(3) If a user or purchaser is connected to a private line, the authorised
operator of the private line shall inform the authorised network operator about
the establishment of the private line according to the criteria laid down in the
Vhr.
(4) The authorised operator of the private line shall conclude a contract with
purchasers and users supplied through the private line, which shall include the
rights and obligations relating to private line use.
(5) The authorised operator of the private line shall be entitled to commission
another person to operate the private line, for the activity of whom it shall be
held liable as if the operation of the private line was carried out by itself.
VET Article 39/A (1) The authorised operator of the private line shall
(a) operate and maintain the private line in due observation of safety,
environmental protection and technical requirements
(b) perform maintenance and repair works and renovations in due time, and
(c) transfer electricity from the connection point to purchasers and users
through the private line.
(2) Authorised operators of private lines must provide access to the private
line for purchasers, users and producers for non-discriminatory charges.
(a) The conditions of access to the private line provided by the authorised
operator of the private line for purchasers, users and producers, and
(b) the conditions of electricity supply provided by the authorised operator of
the private line for users and purchasers taking up electricity through the
private line
must not provide grounds for abuse by the authorised operator of the private
line.
(3) Under the network use agreement concluded with the authorised network
operator, the authorised operator of the private line may pass on the charge
payable for the use of the electricity system on users and purchasers supplied
from the private line under its control without gaining any profit and according
to the principles laid down in the Vhr.
(4) The liability of authorised network operators to users and purchasers
supplied through the private line shall cover the transmission of electricity to
the public utility system connection point and the metering of the consumption
of the users connected to the private line according to Article 41(4).
VET Article 39/B If the purchaser intends to purchase electricity on the
private line as a user under Article 56(2), he must conclude a network use
agreement with the authorised network operator in respect of the connection

point of the private line and the public utility system, and must conclude a line
use agreement with the authorised operator of the private line or must amend
his existing agreement as appropriate. In order to conclude or amend the line
use agreement the authorised operator of the private line must cooperate with
the authorised network operator and the purchaser, and must enable the
establishment of the metering facility and metering for the authorised network
operator. The legal relationship for resale between the purchaser and the
authorised operator of the private line shall terminate when the network use
agreement enters into force. The purchaser must inform the authorised
operator of the private line about his abovementioned intention in due time, in
accordance with the provisions of the Vhr.
Article 39/C If the purchaser or the user intends to connect to the public
utility system directly, the authorised operator of the private line must provide
access to the private line until the connection to the public utility system is
established, and must cooperate with the authorised network operator in order
to ensure the connection to the public utility system.
VET Article 39/D (1) In case of delays in payment, the authorised network
operator and the electricity trader may, by applying the provisions of
Article 47(7) to (10) and Article 47/A of this Act, initiate at the authorised
operator of the private line that the user with whom they have concluded a
contract and who is connected to the private line be disconnected from
electricity supply, and the authorised operator of the private line must forthwith
inform the authorised network operator and the electricity trader about the
disconnection.
(2) The disconnection of purchasers shall be settled in the line use agreement
concluded between the authorised operator of the private line and the
purchaser.
(3) If the authorised operator of the private line as a user is disconnected
from electricity supply under Article 66/A(2) to (4) the authorised operator of
the private line must keep the private line operational at all times and must
comply with the provisions of this Act pertaining to authorised operators of
private lines.
Article 39/E (1) At the joint request of purchasers and users supplied from the
private line, at the request of the authorised operator of the private line, or ex
officio the Office may declare the private line to be public by applying the
provisions of the Vhr. and the sanctions referred to in Article 96 as appropriate,
if the authorised operator of the private line fails to fulfil its obligations laid
down in Article 39(3) to (5) and Article 39/A(1) to (3).
(2) The Office may temporarily appoint the authorised distribution network
operator concerned, to the network of whom the private line is connected, to
operate the private line, if the authorised operator of the private line fails to
fulfil its obligations laid down in Article 39(3) to (5) and Article 39/A(1) to (3) and
the application of Article 96(1)(a) and (b) does not produce any results, and the
appointment is necessary to ensure the secure supply of electricity to users
and purchasers connected to the private line. Article 99(1) shall apply to the
appointment of the authorised distribution network operator. The liability of the
authorised operator of the private line shall be governed by Article 39(5) during
the period of appointment. In respect of the operation of the private line, the
authorised distribution network operator shall act on behalf of the authorised
operator of the private line during the period of the appointment, and shall be

subject to the obligations and shall have the rights of the authorised operator
of the private line which are laid down in the line use agreements concluded
with users and purchasers connected to the private line.
Article 39/F The provisions of Articles 39 to 39/D pertaining to the authorised
operator of the private line shall apply as appropriate to users who set up a
private line within a building for the purposes referred to in Article 39(1)(b) and
(c).
Direct Lines
Vhr. Article 12 (1) The operator of the direct line shall be responsible for the
smooth and safe operation and maintenance of the direct line, and for transmitting
electricity to purchasers.
(2) The operator of the direct line may conclude a network use agreement with the
authorised network operator in respect of the connection point between the power
plant and the public utility system, based on which the authorised network operator
shall be available for the operator of the direct line at the connection point of the
power plant and the public utility system.
(3) The operator of the direct line shall pay a network access fee to the authorised
network operator for the use of the public utility system under the network use
agreement referred to in paragraph (2). The settlement of accounts between the
operator of the direct line and the authorised network operator shall be based on the
data of the consumption meter metering purchase from the power plant and on the
data of the consumption meter installed at the connection point of the power plant
and the direct line.
(4) The producer, the authorised network operator and the operator of the direct
line shall cooperate in accordance with the provisions of the Electricity Supply Codes
in order to ensure the safe operation of the electricity system, to carry out the
required authentic metering and settlement of accounts, and in order to supply
purchasers supplied from the direct line.
(5) The rules and procedures to be followed in case of power plant outages shall be
included in
(a) the network use agreement concluded between the operator of the direct line
and the authorised network operator under paragraph (2),
(b) the contract concluded between the operator of the direct line and the producer,
and
(c) the agreement concluded between the operator of the direct line and purchasers
supplied from the direct line, which contains the rights and obligations relating to the
use of the direct line (hereinafter referred to as: direct line use agreement).
Vhr. Article 12/A (1) In respect of purchasers connecting to the direct line, the
direct line use agreement shall include the provisions of Article 13/D with the
stipulation that any reference to private line shall mean direct line, and that the
provisions pertaining to users shall not apply. The purchaser, the authorised network
operator, the producer and the operator of the direct line shall agree on the
procedure for ensuring compliance with Article 38(2) to (3) of the VET, which shall be
enclosed to the agreement referred to in Article 38(3) of the VET.
(2) The responsibility of the operator of the direct line towards the purchaser shall
cover the transmission of electricity from the connection point of the power plant to
the connection point of the purchaser connected to the direct line, subject to the
provisions of Article 12(5) on power plant outage.

(3) The operator of the direct line shall arrange for the collection and calculation of
the authentic metering data relating to the electricity consumption of the purchaser
and being the basis of billing according to the schedule laid down in the direct line
use agreement.
(4) The conditions of access to the direct line shall not provide grounds for abuse,
shall not contain undue limitations, shall not endanger the security of supply and
quality of service laid down in the direct line use agreement, and shall not be
discriminatory.
(5) The operator of the direct line shall keep an operation log under Article 13(2) to
(4), and shall apply the provisions of Article 13(5) on private line service fees in
respect of the fees of direct line use, except for the provisions pertaining to users.
(6) If the purchaser intends to connect to the public utility system through direct
connection only, the authorised operator of the private line shall ensure connection to
the direct line until the connection to the public utility system is established, and shall
cooperate with the authorised network operator in order to ensure connection to the
public utility system.
Private Lines
Vhr. Article 13 (1) The authorised operator of the private line must ensure the
uninterrupted operation of the private line in accordance with the provisions of the
VET, this Decree and other relevant legislation, and in accordance with the quality
and safety requirements laid down in legislation and official specifications and
standards.
(2) The authorised operator of the private line shall keep an operation log about
outages, network losses, malfunctions and voltage variations affecting purchasers
and users supplied from the private line, and about its correspondence with
purchasers or users supplied from the private line in relation to the private line
service.
(3) The authorised network operator, the purchaser and the user shall have access
to those parts of the operation log which pertain to them, and they shall be provided
with copies or extracts of such parts if they request so, and shall also receive
information in relation to the incidents referred to in paragraph (2). The authorised
network operator, the purchaser and the user may make observations in the
operation log.
(4) The authorised operator of the private line shall keep the operation log and the
correspondence with the purchasers and users supplied from the private line for two
years.
(5) The authorised operator of the private line shall provide the private line service
to purchasers, users and producers for a cost-based fee laid down in a contractual
agreement. The bases of the fee may be the justified costs of the line service,
including the costs of the operation of the private line and of network losses, and
taking the network access methodology published on the homepage of the Office into
account the cost of capital applied to the asset value of the operated line.
(6) The authorised operator of the private line shall keep a separate register on its
service and resale activities which shall ensure the transparency of activities and
non-discrimination, and shall exclude cross-subsidies in relation to its other activities
as well.
Vhr. Article 13/A (1) The authorised operator of the private line shall evaluate its
operation relating to its activity subject to authorisation in every calendar year,

following the given business year, according to the operation log and on the basis of
the data referred to in Article 13(6).
(2) The evaluation referred to in paragraph (1) shall include annual summary data
in respect of the following:
(a) whether the average price of the resold electricity quantity exceeded the
average price of electricity purchased for the given business year,
(b) whether the network access fees paid for the use of the electricity system were
passed on under the network use agreement concluded with the authorised network
operator to purchasers supplied from the private line without gaining any profit, and
(c) how was the definition of justified cost-based fee as referred to in Article 13(5)
applied during the private line service activity.
(3) Purchasers and in the case referred to in point (c) of paragraph (2) users
shall have access to the evaluation.
Vhr. Article 13/B (1) If the authorised operator of the private line sells electricity to
purchasers connected to the private line by resale, and renders private line services,
it shall indicate the average purchase price of electricity as referred to in Article
66(5)(a) and the fees, other financial assets and taxes claimed according to Article
66(7) of the VET separately.
(2) If the authorised operator of the private line renders private line services to
users connected to the private line, the network access fees payable for the
electricity consumption of the user metered by the authorised network operator on
the connection point and aligned to the voltage level of the connection to the public
utility system shall be paid to the authorised network operator by the user.
Vhr. Article 13/C (1) If the authorised operator of the private line submits an
application for an electricity trading licence to the Office, it shall inform the purchaser
about this fact in writing at the same time as submitting the application, and it shall
draw the attention of the purchaser to the fact that it is no longer entitled to resale
after the electricity trading licence enters into force.
(2) The notification referred to in paragraph (1) shall contain the name of the
authorised network operator, the address of its customer service office, and the
detailed conditions for the conclusion or amendment of the agreement containing the
rights and obligations relating to the use of the private line (hereinafter referred to as:
private line use agreement), and an offer relating to the sales of electricity.
(3) If the purchaser intends to purchase electricity through the private line as a user
after the termination of resale, he shall, pursuant to Article 39/B of the VET and at the
latest until the termination of resale,
(a) conclude a network use agreement with the authorised network operator,
(b) conclude a private line use agreement with the authorised operator of the
private line or shall amend his existing agreement, and
(c) conclude a contract for the purchase of electricity with the electricity trader.
(4) In order to conclude the network use agreement the parties shall agree on the
conditions of the availability of the connection point of the private line and the public
utility system to the user in the new or amended private line use agreement.
(5) If the purchaser intends to connect to the public utility system directly, he shall
conclude a network connection agreement and a network use agreement with the
authorised network operator, and a contract for the purchase of electricity with the
electricity trader at the latest until the termination of resale.
(6) The authorised operator of the private line shall inform the purchaser within 8
days in writing if the electricity trading licence has been issued for the operator. The
authorised operator of the private line shall continue resale under the same

conditions until the continuous supply of the purchaser who has become a user is
arranged for, but maximum until the 60th day after the issuance of the electricity
trading licence.
(7) The authorised network operator, the authorised operator of the private line and
the user connected to the private line shall cooperate in accordance with the
Electricity Supply Codes in order to ensure the safe operation of the electricity
system and in order to carry out the required authentic metering and settlement of
accounts.
Vhr. Article 13/D (1) The agreement concluded with the purchaser or the user for
connecting to the private line, for the provision of private line service, and for resale in
the case of purchasers shall contain the following:
(a) the location of the connection point;
(b) the capacity (kVA) and technical specifications of the connection point;
(c) the capacity used at the connection point in the case of purchasers (kVA), with
an indication of whether the used or available capacity is received by the purchaser
temporarily or permanently; the capacity available at the connection point (kVA) in
the case of users;
(d) the technical specifications of the equipment of the purchaser or the user;
(e) if necessary, the maximum permitted extent of the effect of the equipment of the
purchaser or user on the network, and the technical solutions for reducing such
effects;
(f) the financial and technical conditions for the connection to the private line, and
the rules of connection;
(g) the technical specifications of the provided electricity;
(h) the services rendered in the field of operational safety, technical requirements,
maintenance, breakdown recovery and development;
(i) provisions pertaining to electricity metering for purchasers, including the
obligations of the operator and the purchaser relating to metering, the general
conditions of installing metering equipment, the metering periods, and the rules of the
property rights, placement, installation, maintenance and replacement of meters;
(j) the rules of billing and billing complaints;
(k) the detailed rules of paying fees, including the rules of paying fees for services
relating to the use of the private line;
(l) the means of keeping contact with the purchaser or user, the procedure of
providing access to the operation log referred to in Article 13(2) and to the evaluation
referred to in Article 13/A(1), and the means of the publication of the notice to be sent
by the authorised operator of the private line to the authorised network operator or
the electricity trader in case of late payment;
(m) the procedure and location of managing and administering the complaints of
purchasers and users;
(n) the general conditions of becoming from purchaser to user, which shall cover
(na) the rules of procedure,
(nb) the conditions of indirect availability, and
(nc) provisions for regulating cooperation with the authorised network operator in
order to establish a system for the settlement of accounts;
(o) the planned annual maintenance and renovation works, the starting date of the
break resulting from the abovementioned works, and the means of giving preliminary
notice about the expected duration of such breaks, as well as the rules of restrictions
and notifications to be applied in case of malfunctions or other operational incidents;

(p) the cases and sanctions of breaches of contract, in particular the cases and the
procedure of disconnecting users or purchasers from the private line service
temporarily or permanently due to late payment or other reasons; and
(q) the provisions pertaining to legal remedy.
(2) The authorised operator of the private line shall consult with the authorised
network operator about the content elements relating to the indirect availability
referred to in paragraph (1)(n)(nb) and the disconnection referred to in
paragraph (1)(p), and shall consider the observations of the authorised network
operator when formulating the content of the agreements referred to in paragraph (1).
The authorised operator of the private line shall prepare a written memorandum
about the consultation.
Vhr. Article 13/E The provisions of Articles 13 to 13/D pertaining to the authorised
operator of the private line shall apply to users who set up a private line within a
building for the purposes referred to in Article 39(1)(b) to (c) of the VET, with the
stipulation that any reference to the authorised operator of the private line shall mean
the user.
Chapter VI
METERING AND READING
VET Article 40 (1) In order to ensure the invoicing of the performance of
contracts, the following shall perform the authentic measurements in the
manner specified in the Supply Codes:
(a) for contracts concluded between authorised operators, the transmission
system operator with the involvement of authorised distribution network
operators,
(b) for contracts between users connected to the distribution network or to a
private line and authorised operators, the authorised distribution network
operators,
(c) for contracts between users connected to the transmission network and
authorised operators, the transmission system operator,
(d) for the cross-border transmission of electricity, the transmission system
operator.
(2) In connection with power plants with a generating capacity of 5 MW or
less, the measurements referred to in paragraph (1) shall be carried out by the
authorised distribution network operator.
(3) The transmission system operator and the authorised distribution network
operators shall read the meters, and the authorised distribution network
operators shall forward the metering results to the transmission system
operator.
(4) The reading of metering equipment under paragraph (3) shall be carried
out at least once a year in the case of profile-based settlement of accounts,
unless otherwise provided for in the relevant network use agreement, and in
the manner and within the time limit specified in the Supply Codes in
accordance with the provisions of the Vhr. in all other cases. The network use
agreement may not stipulate a reading period longer than one year.
(5) The metering results referred to in paragraph (3) shall be made available
to the network user affected in accordance with the Act on Informational Selfdetermination and Freedom of Information for natural persons free of charge.

(6) Charges for electricity used for public lighting may be assessed by the
authorised distribution network operators without metering, calculated from
the total of the installed capacity of the public light fixtures, including ballast,
multiplied with the duration of public lighting.
(7) If the authorised distribution network operator or the person liable to
provide public lighting services wishes to calculate charges for electricity used
for public lighting on the basis of metered consumption, all meters installed in
the area of the person liable to provide public lighting services shall be read on
the same day, consumption figures shall be added up and forwarded, and
network access fees shall be invoiced according to such figures.
VET Article 41 (1) Authorised network operators shall provide for the
installation, calibration and maintenance of the connection, switching,
transformer and tariff metering equipment specified in the Business and
Supply Codes and required for connecting users and power plants to the
transmission or distribution network including the metering system , and
excluding the built-in components of any switching equipment owned by the
user.
(2) The costs of equipment installation, calibration and maintenance shall be
borne by the producers or operators in the case of power plants; in the case of
users, said costs shall be borne by the transmission system operator or the
authorised distribution network operators.
(3) Authorised distribution network operators shall provide, in accordance
with the provisions of specific other legislation and the Distribution Code, for
the metering of household power plants.
(4) Authorised network operators shall provide, in accordance with the
provisions laid down in paragraphs (1) to (2), for the metering of the electricity
consumption of users connected to a private line. The user shall cooperate
with the authorised operator of the private line in establishing proper facilities
for metering and in enabling metering, except for the installation of switching
and transforming equipment belonging to the connection point and the
establishment of the connection point.
VET Article 42 Authorised operators and authorised producers may establish
and maintain closed electronic communications systems for the purpose of
carrying out their activities and in order to ensure the smooth and reliable
operation of the transmission and distribution networks, undisturbed supply to
satisfy demand, the rapid and safe elimination of malfunctions, and the
transmission of metering results.
VET Article 43 (1) Authorised network operators shall provide for the
collection and calculation of metering data serving as the basis of electricity
consumption billing including the first and final metering data displayed by
the consumption meter and for the forwarding of such data to the electricity
trader party to the contract for the purchase of electricity according to the
schedule referred to in Article 40(4) and in the case referred to in Article
47/B(5). Authorised network operators shall ensure for users in the manner
stipulated in the Vhr. that the difference between the first and last metering
data and the quantity being the basis of the settlement of accounts are
identical in every metering period.
(2) Authorised network operators shall issue detailed invoices to users, with
network access fees indicated separately, except if the network use agreement
of the user is managed by the electricity trader under Article 63(1) and the

electricity trader is indicated in the network use agreement of the user as the
payer of network access fees.
(3) Authorised network operators and electricity traders may not charge a fee
for the single issuance of a copy of the invoice referred to in paragraph (2) in
electronic or printed format.
Metering and Reading
Vhr. Article 14 (1)
(2) In case of network users applying an accounting method other than -based
accounting the authorised network operator shall ensure metering by means of a
remotely readable consumption meter suitable for the registration of load-duration
curves, and shall perform the remote reading of metering data at least once a day.
(3) The metering data determined according to the Electricity Supply Codes shall be
sent to the transmission system operator in the data format and within the deadline
stipulated in the Commercial Code. In addition to the above, the authorised network
operator shall forward the data being the basis of billing to the trader and the provider
of universal services being in a legal relationship with the user concerned within 3
days after the availability of such data; such data shall be sent and processed
according to the conditions laid down in the Commercial Code.
(4) In order to ensure system level cooperation, in particular the cooperation
necessary for the settlement of accounts, every authorised operator except for
authorised operators of private lines, authorised operators of direct lines, and
operators of direct lines and production lines shall operate a data traffic and
communication system coordinated by the transmission system operator. The basic
requirements relating to the communication system shall be contained in the
Electricity Supply Codes.
(5) Unless otherwise provided for by legislation, the transmission system operator
and authorised distribution network operators shall keep the authentic metering and
accounting data aggregated by them, and the documents relating to the authenticity
of consumption meters until the claims deriving from the network use agreement
expire, and shall provide such data and documents to the network user concerned by
the means and in the data format specified in the Commercial Code.
(6) The authorised network operator shall provide the modem and the remotely
readable consumption meter necessary for ensuring data traffic, the time switch and
current limiter necessary for the settlement of accounts, as well as the installation
and maintenance of such devices on its own expense.
(7) The metering facility used for housing the consumption meter shall be
established according to the minimum requirements and rules stipulated in the
Distribution Code. The user shall establish the metering facility on his own expense.
(8) The costs of setting up the data transmission connection enabling the remote
reading of the remotely readable consumption meter within the service location, the
obligation of ensuring continuous data transmission and the costs thereof, including
the subscription charge, shall be borne by the user.
Vhr. Article 14/A (1) If the necessary conditions are met, the Government shall
decide on the introduction of the electronic metering system referred to in Article 13
of Directive 2006/32/EC of the European Parliament and of the Council of 5 April
2006 on energy end-use efficiency and energy services and repealing Council
Directive 93/76/EEC according to the proposal of the Office. The following shall be
taken into account when setting the date of introduction and when submitting the
proposal:

(a) the available, commonly accepted and mature technical solutions serving the
efficiency of the energy system, in line with the prevailing technical and technological
possibilities,
(b) the financially reasonable cost of the introduction of available technical solutions
in Hungary, the amount of which shall be proportionate to potential energy savings,
(c) international experience regarding the system.
(2) The Office shall inform the Government about the considerations referred to in
paragraph (1) annually.
Vhr. Article 15 (1) Under Article 40(1)(c) of the VET the electricity consumption of
users connected to the transmission network shall be accounted on the basis of the
data of the consumption meter covered by the functions of and owned by the
transmission system operator.
(2)
Vhr. Article 16 (1) In order to ensure metering and billing for users who do not have
consumption meters with capacity indication and storage capabilities, authorised
distribution network operators shall prepare profiles on the consumption habits of the
various user groups on the basis of the single methodology prepared in cooperation
with each other.
(2) At the request of users, authorised distribution network operators shall subject
to the derogation set forth in paragraph (3) install a remotely readable consumption
meter in accordance with the provisions on the bearing of costs under Article 14 (6)
to (8).
(3) Authorised distribution network operators shall not be required to install
remotely readable consumption meters suitable for the registration of load-duration
curves in respect of those users supplied from a low-voltage network who (that)
(a) purchase electricity subject to profile-based settlement of accounts,
(b) purchase electricity for the purpose of public lighting or other lighting supplied
from or controlled together with the public lighting distribution network (telephone
boxes, traffic signs, advertisements, etc.)
Vhr. Article 17 Authorised distribution network operators shall revise the profiles at
the request of the Office, but at least every two years, shall inform the Office in
writing about the results of the revision within 30 days after the end thereof, and shall,
if necessary, request the modifications of profiles.
Vhr. Article 18(1) Users subject to profile-based settlement of accounts shall be
classified by the authorised distribution network operator holding an operating licence
in the territory of their service location on the basis of their profiles. Authorised
distribution network operators shall carry out the classification objectively, in
accordance with the Distribution Code and the standard service agreement.
(2) The profiles of users purchasing electricity under Article 16(3)(b) shall be
determined according to the effective nominal input of luminaries calculated by
including ballasts and other fittings, the public lighting schedule or the duration of
lighting calculated on the basis of actual switch-ons and switch-offs.
Vhr. Article 19 The network access fees paid by users applying profile-based
settlement of accounts shall include the costs of balancing the schedule in
accordance with the relevant resolution of the Office.
Vhr. Article 20 Unless otherwise provided for by the network use agreement, the
difference between the metered consumption for a given period and the consumption
estimated in advance by statistical analysis for the same period shall be accounted
for with users applying profile-based settlement of accounts at least annually in
accordance with the Electricity Supply Codes, the standard service agreement of the

authorised distribution network operator and the trader, the network use agreement
and the contract for the purchase of electricity.
Vhr. Article 21 (1) The profiles determined for user groups shall be contained in the
Distribution Code.
(2) The rules of the generation and forwarding of metering data necessary for the
settlement of accounts with balancing groups shall be laid down in the Electricity
Supply Codes.
(3) The detailed rules of profiling and the settlement of accounts with users, and
those of the settlement of accounts between authorised operators, and the
requirements of the establishment of the metering process shall be laid down in the
Electricity Supply Codes.
Vhr. Article 21/A (1) Authorised operators shall ensure that billing and settlement
of accounts are based on the multiple of the actual energy consumption and the rate
for the given zone period or for one tariff period if a periodical tariff is applied, and
shall also ensure the clarity of the appearance of the bill. In the case of users having
a remotely readable consumption meter with the exception of producers the data
referred to in point (a) of paragraph (2) shall be indicated on each bill, while in the
case of users applying profile-based settlement of accounts the data referred to in
paragraph (2) shall be indicated on the bill once a year. Authorised operators shall
provide access for users to data obtained by remote reading on their homepage in
accordance with the Act on Informational Self-Determination and Freedom of
Information and in the manner specified in their standard service agreement.
(2) Electricity traders shall indicate the following in the accounting invoice or in an
attachment thereof once a year for information purposes:
(a) the actual, currently applied sales price of electricity (interim sales price if the
price changes during the year), the first and final metering data of the consumption
meter and the actual energy consumption for the metering period,
(b) a comparison of the electricity consumption of the user as accounted in the
accounting invoice and the consumption of the previous metering period, if such data
are available under the same agreement,
(c) for household customers, a comparison with the average electricity consumption
or reference to where such a comparison can be accessed, and
(d) the means of access referred to in Article a 23/A.
(3) In respect of metering by means of remotely readable consumption meters, the
methodology for determining the quantity being the basis of the settlement of
accounts shall be prepared in the Distribution Code in such a way as to ensure that
this quantity is equal to the difference between the first and final metering data, and
that billing is based on the multiple of the actual energy consumption and the rate for
the given zone period or for one tariff period if a periodical tariff is applied.
(4) The data referred to in point (a) of paragraph (2) shall be indicated in the final
invoice or in an attachment thereto for information purposes.
VET Article 44 Electricity traders unless otherwise provided for by law or in
the network use agreement shall bill for the quantity of electricity consumed
in the period specified in the agreement based on the data of the certified
consumption meter owned by the authorised network operator, consistent with
the meter-reading intervals specified in Article 40(4). During the settlement of
accounts the user shall be informed about the first and final metering data
stored by the consumption meter in respect of the given metering period.
VET Article 45
Chapter VII

TRADE IN ELECTRICITY
VET Article 46 (1) Persons authorised to trade in electricity (hereinafter
referred to as: electricity trader) shall be entitled to engage in trading in
electricity subject to the conditions set out in specific other legislation.
(2) Unless otherwise prescribed in this Act, the authorised provider of
universal services (hereinafter referred to as: provider of universal services)
shall be subject to the rights and obligations set out in this Act and in specific
other legislation pertaining to electricity traders.
Trade in Electricity
Vhr. Article 22 (1) Based on their operating licence electricity traders shall be
entitled to import and export electricity.
(2) The conclusion of a contract for the purchase of electricity may be initiated by
the user and the electricity trader as well. If the electricity trader makes an offer to the
user, the offer must cover every significant circumstance, but at least the following:
(a) the identification number of the offer for reference,
(b) main data of the electricity trader (name and registered seat of the company,
number of the electricity trading licence, homepage address and opening hours of
customer service, and an internet link to the standard service agreement),
(c) the date on which the provision of the service may be commenced if the
communicated conditions are met,
(d) the price of electricity or the pricing methodology,
(e) the validity period of the offer,
(f) information covering every significant element of the legal relationship to be
established,
(g) the draft of the contract for the purchase of electricity, and
(h) individual cases and conditions of the termination or cancellation of the contract.
Vhr. Article 22/A (1) The user and the electricity trader must notify the other
contracting party about any in change in their person within 15 days after such
changes in accordance with the standard service agreement, and must proceed in
accordance with the provisions thereof.
(2) If the network use agreement of the user is managed by the electricity trader in
the capacity of an agent, the electricity trader must inform the authorised network
operator about the change within 3 days after receipt of the notification thereof and
must order an inspection of the metering facility.
(3) If the user
(a) fails to make the notification referred to in paragraph (1), or
(b) prevents the on-site inspection of the authorised network operator,
and the user ceases to use electricity at the service location, the user shall be held
liable vis--vis the electricity trader for the fulfilment of payment obligations deriving
from the contract for the purchase of electricity and for the sanctions of purchase in
breach of contract in respect of the service location until the inspection of the service
location is carried out by the authorised network operator with the involvement of the
user. The burden of proof regarding the making of the notification shall lie with the
user.
(4) If the electricity trader fails to fulfil its obligation referred to paragraph (2), or
fulfils this obligation after the deadline, the electricity trader shall be held liable for the

sanctions of the failure to notify the authorised network operator and to order the
inspection of the metering facility.
Vhr. Article 22/B (1) The electricity trader shall issue a accounting invoice for the
final day of the metering period, and if the contract for the purchase of electricity
terminates a final invoice for the day of the termination of the contract, and shall
fully settle accounts with the user in respect of the metering period, which shall
include itemised financial accounts as well. The detailed rules of the settlement of
accounts shall be contained in the standard service agreement of the electricity
trader.
(2) If the user has not concluded a specific network use agreement, or if his
network use agreement is managed by the electricity trader in the capacity of an
agent, the parties shall settle accounts also in respect of the legal relationship for
network use. Any amount to be repaid according to the result of the settlement of
accounts shall be repaid by the electricity trader to the user within 8 days after the
settlement of accounts in accordance with the standard service agreement.
Vhr. Article 22/C (1) If the electricity trader fails to initiate the reconnection of a
user who has been disconnected from electricity supply but has paid all his debts and
other costs referred to in the Decree on the Services Rendered by Authorised
Electricity Distribution Network Operators and Providers of Universal Services for an
Extra Charge with the authorised distribution network operator within 24 hours after
having become aware of such payments, the trader must pay a penalty to the user.
(2) The amount of the penalty shall be
(a) 50% of the extra fee referred to in the Decree on the Services Rendered by
Authorised Electricity Distribution Network Operators and Providers of Universal
Services for an Extra Charge and charged for the reconnection of users who have
been lawfully disconnected from electricity supply, if the user is reconnected later
than 48 hours but within 72 hours after the user has paid his debts due to reasons of
the provider of universal services,
(b) 100% of the extra fee referred to in the Decree on the Services Rendered by
Authorised Electricity Distribution Network Operators and Providers of Universal
Services for a Charge and charged for the reconnection of users who have been
lawfully disconnected from electricity supply, if the user is reconnected later than 72
hours after the user has paid his debts due to reasons of the provider of universal
services.
Vhr. Article 22/D Contracts for the purchase of electricity concluded for a period of
12 months or less may be extended once for a period not exceeding 12 months.
VET Article 47 (1) In order to administer, investigate and remedy the
notifications and complaints of, and to provide information to users, electricity
traders shall organise and manage communication with users and provide
them the option of personal administration at their registered seat or at other
locations specified in their standard service agreement, and the option of
administration in writing, by telephone and by electronic means.
(2) In addition to the obligation under paragraph (1) electricity traders
supplying users eligible for universal service shall provide customer service at
a permanent customer service office or a customer service branch (hereinafter
jointly referred to as: customer service department), and shall provide users
the option of administration in writing, by telephone and by electronic means in
accordance with the provisions of this Act and the Vhr. The detailed rules of
the type, location and operation of customer service departments shall be

included in the Vhr. and in the standard service agreement of the electricity
trader.
(3) The electricity trader must establish the modus operandi, opening hours
and conditions of operation of the organisation of communication with users
and of the customer service department in such a way as to enable the
appropriate exercise of users rights. Within the framework of the
abovementioned obligation electricity traders supplying users eligible for
universal service must
(a) keep their permanent customer service offices open until 20:00 on at least
one day of the week,
(b) keep their customer service branches open until 18:00 on at least one day
of the week, and
(c) enable users to make appointments for personal administration by
electronic means and by telephone.
(4) Electricity traders supplying users eligible for universal service shall
operate at least one customer service department in regions under the Act on
Regional Development and Regional Planning (hereinafter referred to as:
region) in which the number of users eligible for universal service supplied by
the electricity trader exceeds 15 000. In regions in which the number of users
eligible for universal service supplied by the electricity trader exceeds 45 000,
the electricity trader shall operate at least two customer service departments in
different settlements.
(5) If the electricity trader handles the network use agreement of a user in the
capacity of an agent in accordance with Article 63(1), it shall ensure
administration relating to network use through the organisation of
communication with users referred to in paragraph (1) and through the
customer service departments referred to in paragraphs (2) and (4), and in
Article 50/A(2).
(6) Electricity traders shall discharge the duties set out in specific other
legislation in connection with the users declared as vulnerable customers
under this Act.
(7) Electricity traders shall be authorised to request the authorised
distribution network operator concerned to disconnect household customers
from electricity supply for reasons of late payment only if all of the following
criteria apply:
(a) the payment of the household customer was delayed by more than 60
days,
(b) the consultation with the electricity trader initiated by the household
customer in respect of a moratorium or payment in instalments did not
produce any results, and
(c) the electricity trader has notified the household customer in writing about
the debt and the possibility of disconnection at least twice and in the first
notice it drew the attention of the household customer to the benefits granted
to indigent users under this Act and the Vhr., and to the possibility of the
installation of a prepayment metering device.
(7a) In the case referred to in point (c) of paragraph (7) the first notification of
the household customer shall be sent by post or if the household customer
gives his preliminary consent by electronic means, and the second
notification on potential disconnection and suspension of the service shall be

sent by way of a letter with an acknowledgement of receipt or by other means


suitable for the attestation of receipt.
(8) A household customer may not be disconnected from supply:
(a) on non-working days,
(b) on legal holidays,
(c) on working days directly preceding non-working days or legal holidays,
(d) on rest days specified in specific other legislation.
(9) If a household customer disconnected from electricity supply has settled
all his debt and paid the costs specified in the law on services rendered for an
extra charge, the electricity trader shall initiate the reconnection of the
household customer to supply within 24 hours after having become aware of
such settlement and payment.
(10) Authorised distribution network operators shall fulfil the requests
specified in paragraphs (7) and (9) within 24 hours.
Article 47/A (1) If the payment of a non-household customer eligible for
universal service is delayed by more than 30 days, the electricity trader may
initiate the disconnection of the service location with the authorised
distribution network operator.
(2) The notification on disconnection and suspension of service shall be sent
to the non-household customer by way of a letter with an acknowledgement of
receipt or by other means suitable for attesting receipt by the non-household
customer eligible for universal service.
(3) If a non-household customer eligible for universal service who has been
disconnected from electricity supply has settled all his debt and paid the costs
specified in the law on services rendered for an extra charge, the electricity
trader shall initiate the reconnection of the non-household customer eligible
for universal service to supply within 24 hours after having become aware of
such settlements and payments.
Customer Service
Vhr. Article 23 (1) Permanent customer service offices shall be opened for at least
6 hours a day on all work days of the week and taking a 5-work-day week as the
basis at least 36 hours a week. Operating an electronic queuing system, enabling
payment by bank cards, and holding cash transfer orders available shall be
compulsory for permanent customer service offices.
(2) Customer service branches shall be opened on at least two work days for a total
of at least 8 hours a week. Customer service branches shall locally manage cases
belonging to the case types specified in the standard service agreement according to
locally available information, shall issue certificates on the registration of cases which
do not belong to such types, shall enable payment by bank cards and shall hold cash
transfer orders available. Customer service branches shall not be required to operate
an electronic queuing system.
(3) Electricity traders supplying users eligible for universal services shall
(a) operate a permanent customer service office in regions in which the number of
users eligible for universal service supplied by the electricity trader exceeds 15 000,
in the settlement where they supply the most users eligible for universal service, and
(b) operate a customer service branch in addition to the permanent customer
service office referred to in point (a) in regions in which the number of users eligible
for universal service supplied by the electricity trader exceeds 45 000, in the

settlement in which they supply the second largest number of users eligible for
universal service.
(4) Providers of universal services shall operate a permanent customer service
office under Article 50/A(2) of the VET in the metropolitan municipality of every microregion where a metropolitan municipality is located, and in the capital. Providers of
universal services shall operate a branch in other micro-regions, in the settlement in
which they supply the most users eligible for universal service.
(5) If legislation provides for the operation of both a permanent customer service
office and a customer service branch in a settlement other than the capital, the
provider of universal services shall be required to operate the permanent customer
service office only.
(6) A permanent customer service office established in the capital shall serve
maximum 100 000 users eligible for universal service.
(7) Users eligible for universal service and having a service location in the territory
of the customer service branch shall be entitled to administration at the permanent
customer service office as well.
(8) If the provider of universal services is authorised to render services in a new
service area, it shall establish a customer service department if the number of users
supplied by it exceeds 500 in the new area of service.
Vhr. Article 23/A (1) The activities to be performed at customer service
departments, the detailed quality requirements for opening hours and pursuit of
activities, and the standard of services shall be determined by the Office within the
framework of the standard service agreements.
(2) During the process of price regulation the Office shall recognise only the costs
of the establishment of mandatory customer service departments.
(3) Data relating to the number of clients administered shall be recorded by the
provider of universal services.
(4) Under the agreement of the parties the distribution network customer service
and the electricity trade customer service may be operated on the same premises as
the customer service of the provider of universal services.
(5) If customer services are operated on the same premises, the option of individual
administration relating to the various legal relationships shall be ensured for users
separately.
(6) The list of certifying staff performing energy auditing and providing energyrelated services in the service area of the electricity trader and appointed or
accredited in accordance with the decree on the energy certification of buildings, and
their contact details and the means of accessing measures and programmes for the
improvement of energy efficiency shall be published by the electricity trader on its
homepage, and shall be made available for users at the customer service
departments free of charge.
Procedure of Disconnecting and Reconnecting Household Customers from and to
Supply
Vhr. Article 24 (1) In case of a dispute the burden of proof regarding the existence
of conditions laid down in Article 47(7) of the VET shall lie with the electricity trader.
(2) If a household customer who is not registered in the register of vulnerable
customers as an indigent user has not settled his debts, the electricity trader, at the
same time as sending the first written notification referred to in Article 47(7)(c) of The
VET and sent prior to disconnection, shall inform the customer in writing, in an
understandable and clear manner about the benefits granted to indigent users and

the procedure of applying for registration as a vulnerable customer, and shall send
him the data sheet contained in Annex 23/a which can be used an application form.
(3) If the household customer has applied for registration as a vulnerable customer
to the authorised distribution network operator, the authorised distribution network
operator shall suspend the procedure of disconnection until the registration is granted
or refused. The household customer may be disconnected from supply only after the
refusal of registration.
(4)(8)
(9) If the notification referred to in Article 47(7)(c) of the VET is sent back to the
authorised operator concerned with the note unclaimed, the document shall be
considered delivered on the 10th day after the attempt of postal delivery, unless the
opposite is demonstrated.
(10) The period of the suspension of services under the contract for the sales of
electricity shall be maximum 30 days. If the household customer fails to settle his
debts within this period, the electricity trader shall terminate the contract on the 30th
day with immediate effect. The notification on the suspension of supply shall indicate
to the household customer the termination with immediate effect and the deadline
thereof.
(11)
(12) The information referred to in paragraph (2) shall be sent by the electricity
trader once a calendar year. Subsequently, the electricity trader may also fulfil its
information obligation referred to in paragraph (2) within the calendar year by sending
a reminder of the option of registration as a vulnerable customer, except if the
statutory conditions of registering vulnerable customers as indigent users has
changed since the last information.
Vhr. Article 25 (1) The household customer may be disconnected from supply at
the initiative of the electricity trader only on a date about which the household
customer was informed by the authorised distribution network operator in advance. In
the notification the authorised distribution network operator must indicate those 5
working days within which it intends to carry out disconnection. The notification shall
contain an itemised list of the total amount of claims on the household customer by
titles based on the data provided by the electricity trader as well as the original
deadline of payment of such claims.
(2) If the authorised distribution network operator is not able to carry out
disconnection within 30 days after the receipt of the notification of the electricity
trader, it shall inform the electricity trader accordingly. Following the receipt of the
notification of the failure of disconnection, the electricity trader may terminate the
contract for the sales of electricity and shall at the same time inform the authorised
distribution network operator.
(3)
(4) If the Household customer intends to use electricity services, he must provide
proof of the settlement of his debts to the electricity trader.
(5)
Switching Traders
VET Article 47/B (1) If a user intends to switch electricity traders, the switch
shall be carried out by the authorised operators concerned free of charge, and
the electricity trader and the authorised network operator shall not impose any
charge on the user in this respect. The user may give a mandate to the
electricity trader with whom he is in the process of concluding a contract for

the purchase of electricity to proceed on his behalf in order to carry out the
switching of traders.
(2) The user may terminate the contract for the purchase of electricity in
writing under the conditions stipulated therein; users eligible for universal
service may terminate the contract in accordance with Article 62(4). If the
contract for the purchase of electricity is terminated by the user due to
switching traders, this shall not affect the effect of the network use agreement.
(3) The electricity trader must send a notification to the user and if the new
electricity trader acts on behalf of the user to the new electricity trader about
the following within 5 days after the receipt of the termination of contract:
(a) the acknowledgement of the termination of contract, indicating the unique
identifier of the metering point and the date of the termination of the contract
for the purchase of electricity, or
(b) the contractual conditions that were not met at the time of the submission
of the termination of contract.
(4) If the user acts on his own behalf, he shall send the notification referred to
in point (a) of paragraph (3) to the new electricity trader in due time after
receipt in such a way as to enable the new electricity trader to fulfil its
obligation referred to in paragraph (6).
(5) In the case referred to in point (b) of paragraph (3) the termination of the
contract by the user shall become effective when the contractual conditions
indicated are met.
(6) At the same time as providing the acknowledgement referred to in point
(a) of paragraph (3) the former electricity trader must inform the authorised
network operator about the switch of traders and the date of the termination of
the contract for the purchase of electricity in accordance with the Vhr.
Following the receipt of the acknowledgement referred to in point (a) of
paragraph (3) the new electricity trader shall inform the authorised network
operator about the date of the entry into force of the new contract for the
purchase of electricity without delay, but no later than 21 days before the date
of the termination of the previous contract for the purchase of electricity.
Article 47/C (1) The authorised network operator must fulfil its obligations laid
down in the Vhr. in relation to switching traders until the date of the
termination of the contract for the purchase of electricity. Following a
consultation with the user and the new electricity trader, the former electricity
trader must issue a final invoice within 20 days after the termination of the
contract for the purchase of electricity. Electricity traders and users involved in
switching traders must cooperate with each other and with the authorised
network operator.
(2) The user and the electricity trader may agree on the conditions of
termination in due observation of the criteria laid down in this Act, in the Vhr.
and in the standard service agreement of the trader, provided that this does not
affect the obligations of the authorised network operator laid down in the Vhr.
in respect of switching traders.
(3) In the case of the termination of a contract for the purchase of electricity
concluded for a fixed period, if the user concludes a contract for the purchase
of electricity with another electricity trader with effect from the day following
the day of the termination, the user must inform the electricity trader about the
conclusion of the new contract at least 30 days before the termination of the
fixed-term contract in order to allow for switch of traders to be carried out on

the day following the day of the termination of the fixed-term contract. In such
cases the provisions of Article 47/B(1), Article 47/B(3)(a), Article 47/B(6), and in
Article 47/C(1) and (2) shall apply, with the stipulation that any reference to
termination in Article 47/B(3)(a) shall mean the notification referred to in this
paragraph.
(4) If the user fails to meet the deadline referred to in paragraph (3), the
electricity trader and the authorised network operator shall not be held liable if
switching traders cannot be carried out on the day following the termination of
the fixed-term contract for the purchase of electricity, provided that they meet
the deadlines referred to in Articles 47/B to 47/C.
Switching Traders
Vhr. Article 26 (1) If the electricity trader sends a notification under Article
47/B(3)(b) of the VET to the user, the electricity trader shall provide detailed
information to the user on any unfulfilled contractual conditions, in particular overdue
debts, and on the procedure of the fulfilment of such conditions.
(2) If the user has fulfilled the contractual conditions necessary for the termination
of the contract, the electricity trader shall, in accordance with Article 47/B(3)(a) of the
VET, send an acknowledgement in writing without delay after having become aware
of such fulfilment, and shall at the same time fulfil its notification obligation referred to
in Article 47/B(6) of the VET.
(3) The notifications referred to in Article 47/B(6) of the VET shall be sent to the
authorised network operator in writing with the detailed data content and in the format
specified in the Distribution Code.
(4) The former electricity trader, the new electricity trader and the user shall agree
on the final metering data. In case of a consensus, the former electricity trader shall
inform the authorised network operator about the consensus and about the final
metering data at the same time as informing the authorised network operator about
the switch of traders. If the parties do not manage to agree, the authorised network
operator shall arrange for the reading of the meter under its responsibilities relating to
the switch of traders until the termination of the contract for the purchase of
electricity. The authorised network operator shall communicate the data necessary
for the settlement of accounts to both the former and the new electricity trader within
3 days after the reading. In the case of users who have a consumption meter which is
not remotely readable the authorised network operator shall calculate the final
metering data on a pro rata basis on the basis of the reading.
(5) The final metering data indicated on the final invoice issued by the former
electricity trader must be the same as the first metering data indicated on the first bill
issued by the new electricity trader.
(6) The amount of the financial guarantee referred to in Article 62(4c) of the VET
shall be equal to the consideration calculated on the basis of the price applied by
the electricity trader at the time of the conclusion of the contract of the users
monthly average consumption calculated on the basis of the consumption data of the
previous year. The authorised distribution network operator shall transfer the
consumption data to the electricity trader based on the authorisation granted by the
user.
(7) If the user fulfilled his obligations relating to switching traders in particular the
contractual conditions referred to in Article 47/B(3)(b) of the VET but any of the
electricity traders concerned or the authorised network operator failed to fulfil its
obligations relating to the switch, and as a consequence the switch of traders cannot

be carried out, the former contract of the user for the purchase of electricity shall
remain in force under the same conditions.
(8) The electricity trader or authorised network operator who has failed to fulfil the
obligations relating to switching traders shall reimburse any damage and costs,
together with interest, incurred by the persons concerned in relation to the failure of
switching traders.
Universal Service
VET Article 48 In accordance with the conditions laid down in this Act
providers of universal services shall be subject to the obligation of the supply
of electricity and to a contracting obligation, as regards universal services,
toward eligible users upon receipt of notice from the user lodged in
accordance with the procedure laid down in specific other legislation. For the
purposes of this paragraph, eligible user shall mean any user referred to in
Article 50(3), who (that) requests universal service for a service location
situated within the service area specified in the authorisation granted to the
provider of universal services for providing universal services.
VET Article 49 Under a contract for the purchase of electricity concluded by a
provider of universal services the sales of electricity supplied according to
product packages and tariffs specified in the ministerial decree on the pricing
methodology of universal services on the electricity market and on the product
packages to be offered by providers of universal services (hereinafter referred
to as ESZ Decree) shall fall within the scope of universal services.
VET Article 50 (1) Providers of universal services under the authorisation
for providing universal services referred to in Article 90 shall not sell
electricity to users who are not eligible for universal services.
(2) Providers of universal services shall be subject to the obligation to
conclude contracts for an indefinite period under the general contractual
conditions specified in the standard service agreement.
(3) Household customers and users receiving low voltage electricity of not
greater than 3*63 A of interconnected output level in total for all service
locations shall be eligible to purchase electricity within the framework of
universal services.
(4) The budgetary authority specified in specific other legislation and its
institute performing public functions, local governments and their budgetary
institutes performing public functions, ecclesiastical legal persons performing
public functions, and public institutions operated by foundations if they
submit a claim to the provider of universal services shall be entitled to
conclude a contract for the purchase of electricity with the provider of
universal services in the framework of the public service obligation as the
beneficiaries of the contracting obligation stipulated for the provider of
universal services in Article 48 and in paragraph (2) of this Article, at a price
corresponding to the pricing rules pertaining to universal services, and they
shall also be entitled to supply in the framework of the legal institution of the
supplier of last resort.
(5) The contents of contracts for universal service and the cases of their
termination shall be decreed by the Government.
VET Article 50/A (1) The provisions of the Act on Consumer Protection shall
apply to the customer service departments operated by providers of universal
services with the derogations set forth in this Act.

(2) As regards the operation of customer service departments, the provider of


universal services must, in addition to the requirements set out in Article 47(2)
to (5), operate at least one customer service department in micro-regions listed
in the Annex to Act CVII of 2004 on the Establishment of Multi-purpose Microregional Associations. In micro-regions where the number of users supplied
within the framework of universal service does not exceed 15 000, the provider
of universal services shall be entitled to operate a common customer service
covering several neighbouring micro-regions. The types and minimum number
of customer service departments to be established in the capital in proportion
to the number of household customers shall be specified in the Vhr., and the
detailed provisions for the location and operation of customer services shall be
included in the Vhr. and in the standard service agreement of the provider of
universal services.
Organisations Entitled to Purchase Electricity under a Public Service Obligation
Vhr. Article 26/A (1) Within the framework of a public service obligation, the
following bodies shall be entitled to conclude a contract for the purchase of electricity
with a provider of universal services, upon submitting a claim to the provider of
universal services, as beneficiaries of the contracting obligation stipulated for
providers of universal services in Articles 48 and 50(2) of the VET, at a price
corresponding to the pricing rules pertaining to the provider of universal services,
provided that they are otherwise not eligible for universal service under Article 50(3)
of the VET:
(a) budgetary bodies entered in the register kept by the Hungarian State Treasury,
minority governments, local governments, associations of municipal and regional
minority governments, associations of municipal governments, and multi-purpose
micro-regional associations;
(b) the following public institutions operated by the operators referred to in
paragraph (2):
(ba) social, child welfare and child protection service providers and institutes having
a sectoral identifier under Government Decree 226/2006 (XI.20.) on the sectoral
identifiers and national register of social, child welfare and child protection service
providers and institutes,
(bb) public and higher education institutions registered in the information system of
public and higher education institutions operated by the Educational Authority,
(bc) museum institutions, public libraries, cultural education institutions and public
archives registered by the National Archives of Hungary, as specified in Act CXL of
1997 on Museum Institutions, Public Library Services and Cultural Education,
(bd) health care service providers which have concluded a contract under Article
30(1) to (2) of Act LXXXIII of 1997 on the Services of Compulsory Health Insurance.
(2) The following shall be regarded as operators under point (b) of paragraph (1):
(a) central budgetary bodies, local governments, institutional associations of local
governments, multi-purpose micro-regional associations of municipal governments,
national minority governments, municipal minority governments, and regional minority
governments (hereinafter jointly referred to as: state operator);
(b) churches having a registered seat in Hungary, associations of churches having
a registered seat in Hungary, and ecclesiastical legal persons having a registered
seat in Hungary (hereinafter jointly referred to as: church operator);
(c) foundations, public foundations and the organisational units declared legal
persons by the statutes of such foundations.

(3) If submitting an application to the provider of universal services for the


conclusion of a contract containing a price corresponding to the pricing rules
pertaining to the universal service, the organisations referred to in paragraph (1) must
make a statement to the provider of universal services in which they declare that they
are entitled to conclude a contract for the purchase of electricity under this Decree,
and they must also indicate the registration number attesting eligibility (for example:
register number, sectoral identifier, identifier from the Ministry for Education (OM
identifier), contract number from the National Health Insurance Fund (OEP)). If no
such register exists under legislation, or if the operator cannot be identified on the
basis of the register, the organisations referred to in paragraph (1) shall submit a
copy of their statutes or of any other document attesting eligibility.
(4) The contract for the purchase of electricity to be concluded with the provider of
universal services shall otherwise be governed by the general provisions, with the
stipulation that no benefits shall be granted for the eligible institutions referred to in
this Article other than the supply obligation associated with universal services, price
application and the eligibility for supply provided in the framework of the legal
institution of the supplier of last resort.
Appointment of a Supplier of Last Resort
VET Article 51(1) In the event where an authorised operator supplying
electricity to users eligible for universal service becomes insolvent, meaning
that it is no longer able to honour its financial liabilities, or when procuring
electricity in the quantity required to maintain the authorised operators
services is no longer possible, furthermore, if the Office has withdrawn the
operators authorisation on the grounds specified under Article 96(1)(c) to (d),
and hence the supply of electricity to the affected users eligible for universal
serviced is in jeopardy, the Office shall appoint a supplier of last resort to
supply the affected users eligible for universal service.
(2) The Office shall appoint the supplier of last resort from among the
providers of universal services and traders volunteering to undertake the
commitment to carry out this activity. If no provider of universal services or
trader has volunteered to be appointed as a supplier of last resort, the Office
shall have powers to appoint any provider of universal services or trader under
its own initiative and authority.
(3) The detailed regulations concerning suppliers of last resort and the
procedure for their appointment shall be decreed by the Government in
compliance with Act XLIX of 1991 on Bankruptcy Proceedings and Liquidation
Proceedings (hereinafter referred to as: Bankruptcy Act).
(4) Unless otherwise prescribed, the provisions on universal services and
trade shall also apply as appropriate to the activities of suppliers of last resort.
VET Article 52 (1) For the purposes of the concept of supplier of last resort,
the provisions of the Bankruptcy Act shall apply to authorised traders in
electricity subject to the exceptions set out in this Act.
(2) A business association functioning as an authorised trader in electricity
shall at the same time as lodging a request to the court for opening
bankruptcy or liquidation proceedings, or upon receipt of a court notice of
liquidation requested by creditors inform the Office without delay.
(3) When opening liquidation proceedings according to Article 22(2) of the
Bankruptcy Act ex officio against an authorised trader in electricity which is in

debt, the court shall also notify the Office at the time of opening the
proceedings.
(4) The court, when ordering the liquidation of an authorised trader in
electricity which is in debt, shall notify the Office in addition to the entities
listed in Article 29 of the Bankruptcy Act.
(5) The liquidator may not exercise the right of termination with immediate
effect or rescission specified in Article 47(1) of the Bankruptcy Act with respect
to the contracts for the sales of electricity concluded by the authorised trader
in electricity which is in debt with users eligible for universal services, and the
contracts required for the contractual performance of such contracts (such as,
in particular, contracts for the procurement of electricity). The detailed
regulations concerning the termination of contracts for the sales of electricity
concluded with users eligible for universal services, and other contracts
required for their contractual performance, shall be decreed by the
Government.
(6) The liquidator shall be allowed to exercise the rights relating to investing
the assets of the authorised trader in electricity which is in debt in the form of
non-monetary contribution under Article 48 of the Bankruptcy Act, and the
rights relating to the sales proceedings under Article 49 of the Bankruptcy Act,
insofar as this does not jeopardize the supply of electricity to the users eligible
for universal services under contract with the authorised operator, or the
availability of the means and equipment, and the electricity required therefor.
(7) The expenses arising from the contracts required for the performance of
contracts for the sales of electricity between the authorised trader in electricity
which is in debt and the users eligible for universal services shall be
considered as required for the rational conclusion of the business operations
of the debtor under the Bankruptcy Act.
Chapter VIII
REGULATED ELECTRICITY MARKET
VET Article 53 (1) The following shall apply on the regulated electricity
market:
(a) transactions for purchase may be concluded by users, by the
transmission system operator in respect of procurements necessary for
making up losses in the transmission network, and by authorised distribution
network operators in respect of procurements necessary for making up losses
in the distribution network,
(b) transactions for sales may be concluded by producers, by the
transmission system operator in respect of electricity referred to in Article
13(1), and by authorised distribution network operators in respect of Article
32(3), and
(c) transactions for purchase and sales may be concluded by electricity
traders, and by the transmission system operator in respect of ancillary
services and of balancing the balancing group of electricity subject to
purchase obligation,
if the above-mentioned persons meet the criteria stipulated in the regulated
electricity market code. and if they have concluded a contract with the
authorised operator of the regulated electricity market for participation in trade,

and, if necessary, with the accounting organisation for accounting


transactions.
(2) The number of participants in trade on the regulated electricity market
shall not be limited. If a market participant intending to participate in trade
meets the criteria laid down in legislation, in the Commercial Code and in the
regulated electricity market code, the authorised operator of the regulated
electricity market shall not refuse the conclusion of a contract for participation
in trade.
(3) The introduction, modification and withdrawal of products marketed on
the regulated electricity market, of transaction types and of trading methods
shall be governed by the provisions of the regulated electricity market code.
(4) The provisions for derivative transactions concluded on the regulated
electricity market, for the introduction of other energy sources, or other
product types or rights of material value relating to electricity supply and for
the trading therein shall be covered by specific other legislation in accordance
with this Act.
(5) Specific other legislation may stipulate sales obligations on the regulated
electricity market to a specific extent and under specific conditions.
Vhr. Article 27 Transactions allowed on the regulated electricity market shall be
spot and forward transactions, and a combination thereof.
VET Article 54 (1) With the exception set out in paragraph (2), in any company
limited by shares that operates the regulated electricity market no one
shareholder may control a share or voting rights in excess of 25% of the
companys share capital or of the number of the eligible votes.
(2) The limitations of ownership provided for in paragraph (1) shall not apply
to the transmission system operator.
(3) For the purposes of paragraphs (1) to (2), the share or voting rights held
by a shareholder shall be counted together with the shares or voting rights
held by the shareholders affiliated companies. Ownership share shall mean
the sum of the nominal value of the shares held by a shareholder expressed as
the percentage they represent in the companys share capital.
VET Article 55 (1) The authorised operator of the regulated electricity market
shall function under the Commercial Code, shall abide by its provisions and
shall cooperate with the transmission system operator in the performance and
settlement of transactions. The detailed regulations for such cooperation shall
be laid down in specific other legislation and in the Commercial Code.
(2) The authorised operator of the regulated electricity market shall prepare
the regulated electricity market code containing the rules of trading on the
regulated electricity market, in accordance with the provisions of the
Commercial Code. The regulated electricity market code and the amendments
thereof shall be approved by the Office; the rules of the preparation and
publication of the code shall be included in specific other legislation.
(3) The provisions of the regulated electricity market code shall be binding in
respect of participation in the regulated electricity market and during trade. The
regulated electricity market code shall be prepared in such a way as to ensure
safe and transparent trade, and to facilitate the establishment and
interconnection of regional electricity markets. If safe and transparent trade
cannot be ensured due to unfavourable market developments, the authorised
operator of the regulated electricity market shall be entitled to order the
temporary suspension of trade. The detailed rules of suspension shall be

contained in the regulated electricity market code, in accordance with the


statutory provisions to be applied in the case of a major disturbance in the
electricity system and in an electricity supply crisis.
(4) The rules pertaining to mandatory data provision by the authorised
operator of the regulated electricity market and the publication of data and
information shall be contained in specific other legislation and in the operating
licence.
(5) The authorised operator of the regulated electricity market or a third
person providing services to the authorised operator of the regulated
electricity market shall not engage in an activity subject to authorisation under
Article 74(1)(a) to (b) and (d) to (f), and such third persons shall not engage in
activities subject to authorisation under Article 74(1)(g).
Chapter IX
USERS RIGHTS, VULNERABLE CUSTOMERS

Users
VET Article 56 (1) All users shall be entitled to have access to transmission
and distribution networks to receive electricity in the quality specified in this
Act and specific other legislation issued for the implementation thereof, in the
Electricity Supply Codes and the standard service agreements, and in the
resolutions of the Office, under a network connection and network use
agreement containing financial and technical conditions which are transparent,
comparable and reasonable, and are tailored to the means of access applied by
the users.
(2) Users may purchase electricity under the conditions set out in specific
other legislation, and under contracts for the sales of electricity:
(a) from electricity traders,
(b) from producers,
(c) on the regulated electricity market, and
(d) by way of the cross-border import of electricity.
Consumer Information
VET Article 56/A (1) Authorised operators shall provide access for users to
the prevailing, consolidated text of their standard service agreement approved
by the Office under the provisions of Article 72 at their customer service
departments and on their homepage.
(2) Users shall have the right to receive information on their consumption
data free of charge from the provider of universal services and the electricity
trader supplying electricity.
(3) In relation to the sale of electricity to users, users shall be informed about
the shares and environmental impacts of energy sources used for generating
the electricity sold in the previous calendar year. The detailed rules pertaining
to the means and content of information shall be decreed by the Minister.

(4) The Office shall provide up-to-date information on its homepage for users
on facts and data relating to the efficient use of electricity and to the benefits of
using energy efficient equipment. The detailed rules pertaining to the means
and content of information shall be decreed by the Minister.
(5) The consumer protection authority shall update the energy consumer
checklist prepared by the European Commission and containing information
on users rights whenever necessary, in cooperation with the Office and
authorised operators. The energy consumer checklist shall be sent to
electricity traders by the customer protection authority, and the trader shall
publish the list on their homepage and at their customer service departments.
Proceedings in the Case of Infringements Committed against Household
Customers
VET Article 57 (1) The consumer protection authority shall have competence
to act in the case of violations of the provisions pertaining to the settlement of
accounts, billing, payment of fees or metering, suspension of the electricity
supply of users and their disconnection from supply due to payment delays,
and the reconnection of users after the settlement of debts, and shall respect
the powers of the Office referred to in Article 159(5). The provisions of the Act
on Consumer Protection shall apply to the proceedings of the consumer
protection authority, with the exception that for the purposes of the Act on
Consumer Protection household customers under this Act shall be regarded as
consumers even if they are not natural persons.
(2) The authority referred to in Act XLVII of 2008 on the Prohibition of Unfair
Commercial Practices against Consumers (hereinafter referred to as: Fttv.)
shall be entitled to conduct the proceedings in the case of violations of the
provisions pertaining to the obligation to provide information referred to in
Article 56/A(3), Article 62(2), (3) and (7), Article 73(4) and Article 143/A(2) and (3)
against household customers. The provisions of the Fttv. shall apply to the
proceedings of the acting authority with the exception that for the purposes of
the Fttv. household customers under this Act shall be regarded as consumers
even if they are not natural persons.
(3) For the purposes of the Act on Consumer Protection the provisions of
paragraphs (1) and (2) shall be considered consumer protection provisions.
(4) In addition to the legal consequences stipulated in the Act on Consumer
Protection, the consumer protection authority may apply the following legal
consequences in the case of infringements:
(a) requiring the observation of the standard service agreement of the
authorised operator;
(b) determining the applicable legal consequence and requiring the
enforcement thereof in the case of an infringement of an authorised operator to
which legislation or standard service agreement assigns a legal consequence;
or
(c) if the user is entitled to refund, requiring the payment thereof.
(5) With the exception set forth in paragraph (1), the Office shall act in relation
to complaints against authorised operators.
(6) Prior to the official proceeding the user shall contact the authorised
operator about his complaint in a verifiable manner.
Customer Service

Vhr. Article 23 (1) In order to serve supplied household customers, the provider of
universal services shall establish a customer service department which may be
(a) a permanent customer service office,
(b) a customer service branch
(hereinafter jointly referred to as: customer service department).
(2) Permanent customer service offices shall be opened for at least 6 hours on
every work day and taking a 5-work-day week as the basis at least 36 hours a
week. Permanent customer service offices shall be open until 20:00 on at least one
work day of the week. Operating an electronic queuing system, enabling payment by
bank cards, and holding cash transfer orders available shall be compulsory for
permanent customer service offices.
(3) Customer service branches shall be opened on at least two work days for a total
of at least 8 hours a week. Customer service branches shall be open until 20:00 on at
least one work day of the week. Customer service branches shall receive and
acknowledge the submissions of household customers, shall locally manage cases
belonging to the case types specified in the standard service agreement on site
according to locally available information, shall enable payment by bank cards and
shall hold cash transfer orders available, and, if the provider of universal services
offers the possibility of administration by telephone, shall provide access to this
service free of charge. Customer service branches shall not be required to operate
an electronic queuing system.
(4) A permanent customer service shall be operated
(a) in Budapest,
(b) in metropolitan municipalities.
(5) Customer service departments established in Budapest shall serve maximum
100 000 household customers.
(6) A customer service branch shall be operated in each of the micro-regions
specified in Act CVII of 2004 on the Establishment of Multi-purpose Micro-regional
Associations (hereinafter referred to as: micro-region), but the electricity trader may
decide to operate a permanent customer service office as well.
(7) A customer service branch shall be established in those micro-regions where no
customer service department is being operated when this decree enters into force.
(8) Users eligible for universal service and having a service location in the territory
of the customer service branch shall be entitled to administration at the permanent
customer service office as well.
(9) The provider of universal services shall not be required to operate a customer
service branch in those metropolitan municipalities and micro-regions in which
household customers supplied by it do not have any registered service location.
(10) The activities to be performed at customer service departments, the detailed
quality requirements for opening hours and pursuit of activities, and the standard of
services shall be determined by the Office within the framework of the standard
service agreements.
(11) In accordance with statutory provisions and the resolution of the Office referred
to in paragraph (10), the provider of universal services may request the Office to
declare customer service branches complying with the operational criteria of
permanent customer service offices to be permanent customer service offices. If the
authorised operator subsequently intends to operate the reclassified office once
again according to the rules pertaining to branches, it shall inform the Office no later
than 30 days before the change of operational conditions. On the basis of the

abovementioned notification the Office shall declare the reclassified office to be a


branch.
(12) Data relating to the number of clients administered shall be recorded by the
provider of universal services.
(13) Authorised distribution network operators must establish a customer service
department under the provisions pertaining to providers of universal services.
(14) Under the agreement of the authorised distribution network operator and the
provider of universal services the distribution network customer service may be
operated on the same premises as the commercial or universal services customer
service.
(15) If the distribution network customer service and the customer service of the
provider of universal services are operated on the same premises, the option of
individual administration relating to the various legal relationships shall be ensured
for users separately.
Vhr. Article 23/A The list of certifiers performing energy auditing and providing
energy-related services in the service area of the electricity trader and appointed or
accredited in accordance with Article 9 of Government Decree No 176/2008 (VI.30.)
on the energy certification of buildings, and their contact details and the means of
accessing measures and programmes for the improvement of energy efficiency shall
be published by the electricity trader on its homepage, and shall be made available
for users at the customer service departments free of charge.
Procedure of Disconnecting and Reconnecting Household Customers from and to
Supply
Vhr. Article 24 (1) In case of a dispute the burden of proof regarding the existence
of conditions laid down in Article 47(7) of the VET shall lie with the electricity trader.
(2) If a household customer who is not registered in the register of vulnerable
customers as an indigent user has not settled his debts, the electricity trader, at the
same time as sending the first written notification referred to in Article 47(7)(c) of the
VET and sent prior to disconnection, shall inform the customer in writing in an
understandable and clear manner about the benefits granted to vulnerable customers
and the procedure of applying for registration as a vulnerable customer, and shall
send him the data sheet contained in Annex 23/a which can be used an application
form.
(3) If a natural person who is not entered in the register of vulnerable customers as
an indigent user has not settled his debts in spite of the request and notification
referred to in paragraph (2), and has not applied for registration in the register of
vulnerable customers, the electricity trader shall inform the notary of the municipal
government competent as regards the service location (hereinafter referred to as:
notary) and the guardianship authority competent as regards the service location
(hereinafter referred to as: guardianship authority) about the debt in writing or by
electronic means in accordance with the provisions of the Act on the General Rules
of Administrative Proceedings and Services at the same as sending the second
written notification preceding disconnection, as referred to in Article 47(7)(c) of the
VET, to the user.
(4) If, according to the register of the notary in the case of customers referred to in
points (a) to (e) of Article 30(1), and to the knowledge of the guardianship authority in
the case of customers referred to in points (f) to (g) of Article 30(1), the customer
concerned or a person residing with the customer

(a) receives or is eligible for any of the benefits referred to in Article 30(1), or is
subject to Article 30(1)(g) (for the purposes of this Article and Article 37 hereinafter
jointly referred to as: receives benefits), the notary or the guardianship authority shall,
in respect of the benefits falling within their competence, draw the attention of the
customer concerned within 8 days after the receipt of the notification referred to in
paragraph (3) to the fact that under the conditions laid down in Article 47(7) of the
VET late payment may result in disconnection from electricity supply, shall provide
information to the customers about the benefits provided for vulnerable customers
and about the procedure of applying for entry in the register of vulnerable customers,
and shall send the customer the data sheet contained in Annex 23/a, in which it shall
certify in respect of the service location concerned that the customer is regarded as
indigent under the VET,
(b) has submitted an application for one of the benefits referred to in Article 30(1),
and the application is pending, the notary or the guardianship authority shall, in
respect of the benefits falling within their competence, draw the attention of the
customer concerned within 8 days after the receipt of the notification referred to in
paragraph (3) to the fact that under the conditions laid down in Article 47(7) of the
VET late payment may result in disconnection from electricity supply, shall provide
information to the customer about the benefits provided for vulnerable customers and
about the procedure of applying for entry in the register of vulnerable customers, and
shall send the data sheet contained in Annex 23/a to the customer,
and shall inform the electricity trader about the abovementioned measures within 14
days after the receipt of the notification referred to in paragraph (3).
(5) If the electricity trader is not informed about the measures referred to in
paragraph (4) within 20 days after the sending of the notification referred to in
paragraph (3), and the customer has not applied for entry in the register of vulnerable
customers, nor has he settled his overdue debts, the electricity trader may, at the
initiative of the authorised distribution network operator, disconnect the customer
concerned from service after a further 10 days, provided that other necessary
conditions are also met.
(6) If the electricity trader is informed about the measures referred to in paragraph
(4) within 20 days after the sending of the notification referred to in paragraph (3), the
authorised distribution network operator may disconnect the customer concerned
from service if the customer has not applied for registration as a vulnerable customer
to the authorised distribution network operator within 45 days after the sending of the
notification referred to in paragraph (2), nor has he settled his overdue debts,
provided that other necessary conditions are also met.
(7) If the notification of the electricity trader referred to in paragraph (3) concerns a
person who does not receive benefits referred to in Article 30(1) which fall within the
competence of the notary or the guardianship authority, the notary or the
guardianship authority shall forthwith take measures to delete the data received in
respect of such persons following the establishment of such circumstances.
(8) The notification on disconnection and suspension of service shall be sent to the
household customer by way of a letter with an acknowledgement of receipt.
(9) If the notification referred to in paragraph (8) is sent back to the authorised
operator concerned with the note unclaimed, the document shall be considered
delivered on the 10th day after the attempt of postal delivery, unless the opposite is
demonstrated.
(10) The period of the suspension of services under the contract for the sales of
electricity shall be maximum 30 days. If the household customer fails to settle his

debts within this period, the electricity trader shall terminate the contract on the 30th
day with immediate effect. The notification on the suspension of supply shall indicate
to the household customer the termination with immediate effect and the deadline
thereof.
(11) The provisions of paragraphs (3) to (7) shall apply if the authorised distribution
network operator intends to disconnect the customer from service between 15
October and 15 April due to debts.
(12) The information referred to in paragraph (2) shall be sent by the electricity
trader once a calendar year. Subsequently, the electricity trader may also fulfil its
information obligation referred to in paragraph (2) within the calendar year by sending
a reminder of the option of registration as a vulnerable customer, except if the
statutory conditions of registering vulnerable customers as indigent users and the
person of the household customer have changed since the last information.
Vhr. Article 25 (1) The household customer may be disconnected from supply at
the initiative of the electricity trader only on a date about which the household
customer was informed by the authorised distribution network operator in advance. In
the notification the authorised distribution network operator must indicate those 5
working days within which it intends to carry out disconnection. The notification shall
contain an itemised list of the total amount of claims on the household customer by
titles based on the data provided by the electricity trader as well as the original
deadline of payment of such claims.
(2) If the authorised distribution network operator is not able to carry out
disconnection within 30 days after the receipt of the notification of the electricity
trader, it shall inform the electricity trader accordingly. Following the receipt of the
notification of the failure of disconnection, the electricity trader may terminate the
contract for the sales of electricity and shall at the same time inform the authorised
distribution network operator.
(3) Following the termination of the contract for the sales of electricity the rules of
purchase by means other than contracted shall apply in respect of electricity
purchased by the household customer concerned until his disconnection.
(4) If the household customer intends to use electricity services he must
demonstrate the settlement of his debts to the electricity trader.
(5) Upon the initiative of the electricity trader as referred to in Article 47(9) of the
VET, the authorised distribution network operator shall reconnect the household
customer to electricity supply within 24 hours.
Vhr. Article 26 The provisions of Articles 24 to 25 shall not apply if the conduct of
the household customer endangers the safe operation of the electricity system.
Rules of Procedure Pertaining to the Handling of the Submissions of Users by
Authorised Operators and to Lodging such Submissions by Users and Household
Customers
Vhr. Article 28 (1) When handling the submissions of users, authorised operators
shall proceed in accordance with the following provisions, in addition to the provisions
of the Consumer Protection Act.
(2) The authorised operator shall issue certifications about the receipt of
submissions lodged in writing at its customer service departments. The authorised
operator concerned must keep all submissions of users until the end of the limitation
period in such a way as to enable retrieval.
(3) Within 8 days after the receipt of submissions, authorised operators must
consult with each other to determine which one of them has the right or obligation to

proceed in the given case. The user shall be forthwith informed about such
consultation in writing.
(4) If the submission concerns both the sales of electricity and network service, and
as a consequence affects several authorised operators, the authorised operators
concerned shall consult with each other within 15 days after the receipt of the
submission in order to clarify powers and to take the necessary measures.
(5) When administering submissions, authorised operators shall provide a
substantial response to users in writing within 15 days. The 15-day deadline for
giving a response may be extended with the duration of the establishment of the
procedural competence referred to in paragraph (3), and with the duration of the
consultation referred to in paragraph (4), if such procedures are necessary. The
period between setting appointments with the user and the completion of the on-site
check relating to the submission shall not be included in the time limit for giving a
response.
(6) In case of administration by telephone the authorised operator shall ensure the
documentation of administration through individual case numbers. The authorised
operator shall inform the user about the individual case number during administration
by telephone. The authorised operator may dispense with the investigation of
repeated submissions lodged by the same user if their content is the same as that of
a previous submission to which a substantial response was given and they do not
contain any new information, and of anonymous submissions.
(7) Standard service agreements may provide for more favourable provisions for
vulnerable customers.
(8) Applications submitted by users to the consumer protection authority or to the
Office in relation to responses of authorised operators which are of unacceptable
quality, or to the absence of a substantial response (hereinafter referred to as:
complaint) shall contain the following:
(a) telephone number and e-mail address of the applicant, the service location
concerned,
(b) brief description of the subject of the application, supported by available
documents, including in particular the response letter of the authorised operator sent
at the request of the user, a document demonstrating the request of the user, such
as the certification referred to in paragraph (2), the individual case number referred to
in paragraph (6) or, in the case of complaints submitted by post, the document
evidencing dispatch, and the signature of the applicant,
(c) the requested measure.
Vhr. Article 29 (1) Authorised operators shall include the detailed rules of the
handling of submissions of users and of the lodging of users complaints in their
standard service agreements.
(2) The provisions of Article 28(3) to (4) shall not apply if the customer service
activity of the authorised distribution network operator and the trader is performed by
the same organisational unit or organisation.
Network Connection and Network Use Agreement

VET Article 58 (1) Under the conditions and according to the procedure laid
down in specific other legislation and in the standard service agreement,
authorised network operators shall enter into network connection and network
use agreements with network users.

(2) Authorised network operators shall be subject to contracting obligation


concerning network use, which contracts shall cover the same term as their
authorisation. If the said authorisation is extended the relevant network use
agreement shall be extended accordingly by operation of the law.
(3) The mandatory content requirements of network connection agreements
shall be decreed by the Government.
(4) Authorised network operators, in connection with the refusal of
connection to the transmission and distribution network, shall proceed
according to Article 27.
VET Article 59 (1) The metering of the electricity consumption of users shall
be carried out by the authorised network operators in accordance with the
Supply Codes.
(2) The payment of network access fees may be assumed by third parties
based on an agreement with the person liable or on the basis of this Act, of
which the authorised distribution or transmission system operator affected
must be informed without delay.
(3) Authorised network operators may terminate network use agreements in
the following cases:
(a) in the event of any breach of contract under civil law, exclusive of the
contracts of vulnerable customers;
(b) in the event of any breach of contract on the part of vulnerable customers
as specified in specific other legislation;
(c) if the contracting user ceases to purchase electricity at the service
location specified in the contract.
(4) An authorised network operator shall be deemed to have breached the
contract in particular if:
(a) supplying electricity by ways other than agreed in the network use
agreement, or laid down in the Supply Codes and in the operating licence, and
if transferring electricity in violation of the prescribed quality requirements,
(b) failing to reinstate services to deliver contracted supplies to the user
affected following suspension, on the next working day upon receipt of notice
in writing concerning the termination of the reason for suspension,
(c) failing to notify the user in advance in the manner specified in the
standard service agreements or in the contract of the date and projected
duration of suspension of service due to scheduled maintenance or
renovation,
(d) applying a consumption meter without a valid certificate of approval.
(4a) The case referred to in point (d) of paragraph (4) shall not be regarded as
breach of contract by the authorised network operator if the network user has
prevented the inspection or replacement of the consumption meter and this
fact is attested by the relevant report.
(5) Authorised network operators shall pay users:
(a) a penalty for any violation of the contract under points (a) to (c) of
paragraph (4),
(b) a one-off penalty for any violation of the contract under point (d) of
paragraph (4).
(6) As regards network connection and network use agreements, in terms of
their nullity and contractual liability the relevant provisions of Act IV of 1959 on
the Civil Code (hereinafter referred to as: Civil Code) shall apply, unless this
Act contains provisions to the contrary. In connection with warranty claims, on

the other hand, the burden of proof shall lie with the authorised network
operator to show that it has taken all measures within reason with a view to
providing consumers with a secure supply of electricity of a specified quality.
(7) During the performance of the contract, the parties shall be required to
appropriately inform one another, including about any changes proposed to be
implemented within 3 months which affect essential clauses of the contract.
(8)
VET Article 60 (1) In the major clauses of the network use agreement
authorised network operators may not install terms which are discriminatory
as to the electricity trader from whom the user intends to purchase electricity.
(2) The rights fixed in the network connection agreement as due to the
network user may be transferred together with the service location, or may be
repurchased by the authorised network operator.
(3) The term of limitation for claims arising from network use agreements
shall be two years.
Contract for the Purchase of Electricity
VET Article 61 (1) Users may conclude contracts for the purchase of
electricity under the conditions laid down in specific other legislation and in
the relevant authorised operators standard service agreement with an
electricity trader or producer, or by way of the cross-border transmission of
electricity, as well as on the regulated electricity market in writing.
(2)
(3) Electricity traders shall provide membership in the balancing group to
their contracted users eligible for universal services free of charge.
VET Article 62 (1) The contracts for the purchase of electricity of users
eligible for universal services with electricity traders shall at least contain the
following information:
(a) names of the parties to the contract, for natural persons the name and
address, for legal persons, or legal entities established under the general
provisions of the Civil Code the registered seat, company registry number or
equivalent identifier, and tax number,
(b) starting date of service;
(c) description of rendered services, quality standard of these services
offered in accordance with statutory provisions, and the sanctions to be
imposed if the service provided is not in conformity with these quality
requirements, including the stipulation that payment of a penalty for nonconformity in the standard of service shall not exonerate liability for damages,
(d) the prices of services in effect at the time of contracting,
(e) the contact details of the electricity traders customer service,
(f) the duration of the contract, contract terms and conditions, and the
conditions for the extension, termination and cancellation of services and the
contract itself,
(g) cases and legal consequences of breach of contract, in particular the
detailed conditions of disconnection from supply,
(h) information concerning the submission and handling of complaints
lodged by users and household customers, as well as the means and
conditions for attempting to reach a settlement by agreement in any consumer
dispute governed under the Customer Protection Act, including the procedures
and the conditions for remedy if such attempt should fail,

(i) description and conditions of additional services rendered for an extra


charge, if the provider of universal services or the trader provides such
services,
(j) the name and registered seat of the authorised network operator to the
network of whom the user is connected indirectly or directly,
(k) indication of the service location and the metering point
(l) the quantity of the contracted electricity intended to be used, or an
indication that the service provides full supply, and
(m) accounting and billing periods, and the means and conditions of billing
and settlement of accounts.
(1a) As regards users who are not eligible for universal service, the contract
for the purchase of electricity to be concluded with the electricity trader shall at
least contain the conditions which are regarded as substantial content
elements under points (a), (d), (f), (g) and (j) to (m) of paragraph (1).
(2) In case of any proposed amendments in those terms and conditions of the
contracts for the purchase of electricity prescribed in the standard service
agreement which may be amended by them unilaterally, providers of universal
services and, as regards users eligible for universal services, electricity traders
shall, at least 30 days in advance of such changes going into effect
(a)
(b) post them in the customer service offices and on their homepage, and
(c) notify the users affected in writing concerning the proposed changes,
including the option to terminate the contract.
(3) Changes in prices must be notified to users eligible for universal services
in accordance with Article 143/A(2) to (3), irrespective of whether the electricity
is purchased from a provider of universal services or from an electricity trader.
(4) Users eligible for universal services may terminate contracts for the
purchase of electricity concluded for an indefinite period with a thirty-day
notice in writing. Any contract clause with the capacity to restrict the duration
of or prevent the right of users eligible for universal services to terminate their
contract shall be null and void.
(4a) If a non-household customer eligible for universal service intends to use
universal service again after the termination of the contract for the purchase of
electricity concluded with an electricity trader, the provider of universal
services shall be entitled to require the user to present a certificate issued by
the electricity trader proving that the contract for the purchase of electricity of
the non-household customer eligible for universal service was terminated for
reasons other than disconnection due to non-payment.
(4b) Under the relevant conditions, the electricity trader must issue the
certificate referred to in paragraph (4a) at the request of the non-household
customer eligible for universal service.
(4c) If the electricity trader has not issued the certificate because the contract
concluded by the non-household customer eligible for universal service was
terminated due to disconnection resulting from non-payment, the provider of
universal services shall be entitled to require a financial guarantee as a
condition of concluding the contract for the purchase of electricity, the amount
of which shall be specified in the Vhr.
(5)(6)
(7) During the performance of the contract for the purchase of electricity, the
parties shall be required to inform one another in due time and by appropriate

means of essential developments pertaining to the contract, including any


changes pertaining to major points of the contract proposed to be
implemented within 3 months.
(8) Contracts for the purchase of electricity shall be governed by the
provisions of the Civil Code, unless this Act and the Act on Product Liability
provides otherwise. In connection with warranty claims, the burden of proof
shall lie with the authorised operator.
VET Article 63 (1) Electricity traders and providers of universal services shall
be required to handle network connection agreements and network use
agreements, and contracts for the purchase of electricity jointly in the capacity
of an agent, when so agreed on with the user, or when so requested by the
user, respectively.
(2) Traders and authorised distribution network operators shall enter into an
agreement for compliance with the obligation set out in paragraph (1) guided
by the conditions laid down in their standard service agreements.
(3) The term of limitation for civil law claims arising from contracts for the
purchase of electricity concluded between the electricity trader and the user
shall be two years. The term of limitation shall begin on the day on which the
claim becomes due.
Exemption from Disconnection from Electricity Supply
VET Article 63/A (1) Social, child welfare, child protection, health care or
public education institutions specified in a governmental decree and
performing duties of the state or local governments (hereinafter referred to as:
public institutional user) may apply for an exemption from disconnection from
electricity supply resulting from late payment (hereinafter referred to as:
moratorium) to the electricity trader and the authorised distribution network
operator.
(2) The moratorium shall cover the period specified by the initiating public
institutional user, but maximum the period between 15 October of the given
year and 15 April of the following year.
(3) If the public institutional user meets the criteria laid down in this Act and
in the government decree referred to in paragraph (1), the electricity trader and
the authorised distribution network operator must grant the moratorium for the
period specified in the application of the public institutional user.
(4) If the public institutional user meets the criteria laid down in this Act and
in the government decree referred to in paragraph (1), the disconnection of the
public institutional user from electricity supply resulting from late payment
shall not be initiated during the period of the moratorium, but this shall not
affect the right of the electricity trader and the authorised distribution network
operator to enforce their claim at court or by other legal means.
(5) The public institutional user may reapply for a moratorium, if it has
completely fulfilled the payment obligation arising from the previous late
payment, and the obligations arising from the previous moratorium.
(6) The electricity trader and the authorised distribution network operator
providing the moratorium shall not pass on the costs incurred in connection
with the moratorium to other users. Such costs shall not be included in the
prices of products or services rendered by the electricity trader and the
authorised distribution network operator either directly or indirectly, and shall
not be billed separately. Such costs except for charges and interests of

products and services to be paid by the public institutional user shall be


borne by the electricity trader and the authorised distribution network operator.
(7) If the public institutional user has applied for a moratorium in accordance
with this Act and the government decree referred to in paragraph (1), the
electricity trader or the authorised distribution network operator shall not
terminate the contract concluded with the public institutional user with
reference to late payment.
(8) In respect of the moratorium the operator of the public institutional user
shall be held liable for the debt of the public institutional user incurred during
the moratorium as a surety as referred to in Article 274(1) of the Civil Code.
(9) The detailed rules of the moratorium, and the rights and obligations of
parties affected by the moratorium shall be decreed by the Government.
Detailed rules of Exemption from Disconnection from Electricity Supply
Vhr. Article 29/A For the purposes of the VET and this Decree, public institutional
user shall mean
(a) kindergartens, primary schools, kindergartens or schools for students with
special educational needs, or conductive kindergartens or schools under the Act on
public Education, and dormitories belonging to such institutions, if
(aa) maintained by the state or by a local government, or
(ab) having an effective public education agreement for performing duties of the
state or local governments,
(b) institutions providing care and assistance, rehabilitation institutes, nursing
homes, institutions providing temporary care, and social institutions providing day
care for homeless people under the Act on Social Administration and Social Benefits,
if
(ba) maintained by the state or by a local government, or
(bb) having an effective supply contract for performing duties of the state or local
governments,
(c) nurseries, family day care facilities, temporary homes for children, temporary
homes for families, childrens homes, residential homes, after-care homes and
correctional schools under the Act on Child Protection and Guardianship
Administration, if
(ca) maintained by the state or by a local government, or
(cb) having an effective supply contract for performing duties of the state or local
governments,
(d) health care institutions providing hospital services under the Act on Health Care,
if
(da) maintained by the state or by a local government, or
(db) having an effective contract for providing public health care services.
Vhr. Article 29/B (1) Public institutional users shall apply for the moratorium
referred to in Article 63/A of the VET (hereinafter referred to as: moratorium) to the
electricity trader and the authorised distribution network operator at least 15 days
before the commencement of the period affected by the moratorium (hereinafter
referred to as: moratorium period).
(2) At the same time as submitting the application for the moratorium, the public
institutional user shall prove by presenting the following documents that the criteria
laid down in Article 63/A of the VET and in Article 29/A of this Decree are met:
(a) statutes or operating licence for the public institutional users referred to in Article
29/A(a)(aa),

(b) statutes or operating licence, and effective public education agreement for the
public institutional users referred to in Article 29/A(a)(ab)
(c) statutes or operating licence for the public institutional users referred to in Article
29/A(b)(ba),
(d) statutes or operating licence, and effective supply contract for the public
institutions referred to in Article 29/A(b)(bb),
(e) statutes or operating licence for the public institutional users referred to in Article
29/A(c)(ca), except for correctional schools,
(f) statutes or operating licence, and an effective supply contract for the public
institutional users referred to in Article 29/A(c)(cb), except for correctional schools,
(g) statutes for correctional schools, and
(h) an effective contract for public financing for the public institutional users referred
to in Article 29/A(d).
Vhr. Article 29/C (1) Following a consultation with each other, the electricity trader
and the authorised distribution network operator shall jointly inform the public
institutional user within 5 days after the receipt of the application for moratorium
either that
(a) it complies with the criteria referred to in Article 29/B(2), and the moratorium is
granted for the period specified in the application, or
(b) it does not comply with the criteria referred to in Article 29/B(2), in which case
they shall give the reason for refusal.
(2) The refusal referred to in point (b) of paragraph (1) shall not prevent the public
institution user to submit a further application for moratorium.
Vhr. 29/D. (1) The electricity trader and the authorised distribution network
operator shall inform the public institutional user about the payment obligation arising
from consumption during the moratorium period within 10 days after the moratorium
period.
(2) The public institutional user shall fulfil the payment obligation referred to in
paragraph (1) in equal instalments until the final day of each month, but no later than
31 December following the moratorium period. The electricity trader and the
authorised distribution network operator may agree with the public institutional user
otherwise, but they shall not make the moratorium subject to the conclusion of such
agreement.
Vulnerable Customers
VET Article 64 (1) Vulnerable customers shall be afforded protection under
specific other legislation if, by definition, they are defined as indigent users or
disabled consumers, in the form of benefits by electricity traders and
authorised distribution network operators to the extent specified in detail in
specific other legislation.
(2) Indigent users shall, in particular, have access to the following benefits:
(a) payment in instalments or deferred payment,
(b) a prepayment metering device.
(3) The scope of indigent users, the procedure to verify eligibility for
treatment as vulnerable customers, and the conditions for payment in
instalments or deferred payment, for obtaining a prepayment metering device,
the requirement for offering the installation of a prepayment metering device,
and for eligibility for other benefits shall be decreed by the Government.

(4) Disabled consumers shall be offered certain privileges in particular in


connection with metering, reading and billing procedures and payment terms,
consistent with their respective needs. Those disabled consumers, whose
health or life is endangered by disconnection from or suspension of electricity
supply, shall not be disconnected from supply in case of late payment or nonpayment.
(5) In the case of late payment, indigent users may avail themselves of the
benefits referred to in paragraph (2). If an indigent user fails to settle his
outstanding debts after being granted the option of payment in instalments or
deferred payment, or fails to comply with the agreement on payment in
instalments or deferred payment, the electricity trader affected may make
further supply subject to the installation of a prepayment metering device. If
the indigent users does not give his consent to the installation of a prepayment
metering device, or hinders or prevents the installation or commissioning
thereof, such user may be disconnected from supply in accordance with Article
47(7) and (8). The price charged for electricity received through the prepayment
metering device may not exceed the price that was originally charged to the
indigent user under the contract for the purchase of electricity without the use
of a prepayment metering device.
(6) Any consumer to whom paragraphs (3) and (4) equally apply shall be
entitled to enjoy the benefits specified in paragraphs (2) and (4) to (5) at the
same time.
(7) In the case referred to in paragraph (5) the costs of the installation of the
prepayment metering device and of the conversion of the metering facility
necessary for connecting the consumption meter shall be borne by the
authorised distribution network operator. The costs relating to the operation of
the top-up system of the prepayment metering device and to the provision of
top-up shall be borne by the electricity trader. The property right of the
prepayment metering device shall be governed by the general rules pertaining
to consumption meters.
(8) The prepayment metering device shall be topped up by the indigent user.
Other persons may also perform top-up on behalf of the indigent user, subject
to indicating the service location. The suspension of supply resulting from the
failure of top-up or the exhaustion of the top-up amount shall not be regarded
as disconnection by the authorised operator.
VET Article 65 (1) Authorised distribution network operators shall keep a
register on vulnerable customers based upon which to provide the aforesaid
benefits; the register shall clearly indicate the type of benefit [Article 64(2) and
(4) to (5)] to which the customer is entitled, and the benefits he requested.
(2) In order to attest eligibility to be treated as a vulnerable customer, at the
request of the vulnerable customer the body that awarded the benefit
conferring entitlement to vulnerable customer status shall, subject to the
derogations stipulated in the government decree referred to in Article 64(3),
issue a certificate proving that the vulnerable customer is receiving the benefit
in question at the time of the submission of the application.
(3) On the certificate the body that awarded the benefit must indicate the
service location for which the certificate was issued. A certificate shall be
issued for one service location per customer at a time.
(4) Admission to the register shall be requested by users. Applications shall
indicate the preferential treatment or benefit referred to in this Act or the

government decree referred to in Article 64(3) to which the applicant is eligible


and intends to apply for. The documents evidencing the entitlement to be
treated as a vulnerable customer, as referred to in paragraph (2) and in Article
64(3), shall be attached to the application. The customer shall be notified of his
admission to the register within 8 days in writing.
(5) The register shall indicate only the customers name, the address of the
service location, the customer code, reference to Article 64(3) and (4), or the
type of preferential treatment referred to in paragraphs (2) and (4) to (5), and
the benefits available to the customer in question.
(6) Following admission to the register vulnerable customers shall supply
documentary proof by 31 March of each year to verify their compliance with the
relevant criteria for protection. Disabled consumers whose condition is not
expected to improve considerably as supported by medical evidence
specified in the Vhr. shall not be required to supply such yearly verification.
If, due to changes in the circumstances under which protection was granted,
the household customer is no longer entitled to the benefits described in
Article 64(2) and (4) to (5), the data of such customer shall be deleted from the
register; however, they shall remain accessible for a period of 5 years from the
time when they were recorded. The relevant data processor shall notify the
customer whose data was deleted from the register in writing within 8 days.
Detailed rules Pertaining to Vulnerable Customers
Vhr. Article 30 (1) For the purposes of the VET and this Decree indigent user shall
mean persons who, or persons residing with persons who:
(a) receive allowance for the elderly under Article 32/B of Act III of 1993 on Social
Administration and Social Benefits (hereinafter referred to as: Szoctv.),
(b) are eligible for the benefits for persons of active age under Article 33 of the
Szoctv.,
(c) receive home maintenance support under Article 38 of the Szoctv.,
(d) receive nursing fee under Articles 40 to 44 of the Szoctv.,
(e) receive regular child protection allowance under Article 19 of Act XXXI of 1997
on Child Protection and Guardianship Administration (hereinafter referred to as:
Gyvt.),
(f) received a housing subsidy under Article 25 of the Gyvt., in which case indigent
status shall last for 3 years after the establishment of the subsidy, or
(g) are foster parents or professional foster parents under Article 54 of the Gyvt.,
who raise children under temporary or permanent care in their own households.
(2) For the purposes of this title the term household shall be interpreted according
to Article 4(1)(f) of the Szoctv.
(3) Indigent users may exercise their rights arising from protection at only one
service location. If the indigent user requests entry into the register referred to in
Article 65(1) of the VET with reference to a person residing with him, that person
shall not be entitled to request his entry into the register in respect of another service
location either.
(4) Indigent users shall attest their compliance with paragraph (1) to the authorised
distribution network operator by presenting the original
(a) form under Annex 23/a which shall be filled in and signed, and shall not be older
than 30 days, or

(b) certificate or resolution issued by the body establishing the benefit or fact
conferring entitlement to indigent user status, which attests the eligibility and shall not
be older than 30 days.
The authorised distribution network operator shall keep the copies of the documents
presented for the purpose of attestation for 5 years after the termination of eligibility.
(5) The authorised distribution network operator must register the indigent user
within 8 days after the attestation of indigent status, and shall inform the electricity
trader being in a legal relationship with the consumer about the registration at the
same time as informing the consumer.
(6)
(7) If the circumstance being the basis of registration persists for a fixed period, and
the extension thereof is not attested by the vulnerable customer in spite of the written
warning sent by the authorised distribution network operator 30 days before the
expiry of the final deadline, the authorised distribution network operator shall delete
the user concerned from the register within 8 days after the expiry of the final
deadline set in the attesting document. The vulnerable customer concerned shall be
informed about the deletion from the register by the authorised distribution network
operator. As regards the establishment of the data of the user the provisions of
Article 65(4) of the VET shall apply.
(8) The authorised distribution network operator shall inform those users who are
included in the register of vulnerable customers as of 15 February of the reference
year as indigent users and must reattest their eligibility referred to in Article 65(4) of
the VET about this obligation until March 1 of the reference year in writing, in an
understandable manner, and shall send then the data sheet in Annex 23/a. The
authorised distribution network operator shall delete those vulnerable customers
subject to reattestation of eligibility from the register who fail to fulfil this obligation
until 31 March of the reference year. As regards the establishment of the data of the
user the provisions of Article 65(4) of the VET shall apply.
(9) Indigent users shall reattest their eligibility under Article 65(4) of the VET for the
first time in the calendar year following their registration.
Vhr. Article 31 (1) Indigent users may apply for payment in instalments or deferred
payment within 5 days after the receipt of the second payment notice. The payment
notice shall draw the attention of the indigent user to the above. The electricity trader
must give a substantial response to the application of the user for a payment
allowance within 15 days.
(2) Payment in instalments and deferred payment may be granted for those
indigent users who undertake that they will pay the consideration of the electricity
consumed during the period of payment in instalments and deferred payment, the
instalments of the debt, and the deferred amount of the debt within the deadline.
Payment in instalments and deferred payment may be granted for users once in 12
calendar months.
(3) If the indigent user breaches the agreement on payment in instalments or
deferred payment, the electricity trader shall be entitled to terminate the agreement
on payment in instalments or deferred payment with immediate effect. During the
period of payment in instalments or deferred payment the user shall not be required
to pay interests on payment obligations affected by the payment allowance.
(4) The period of payment in instalments shall not be shorter than
(a) two months for debts not exceeding the consideration of the average
consumption of one month calculated on the basis of the consumption billed in the 12
months preceding the application,

(b) five months for debts not exceeding the consideration of the average
consumption of 3 months calculated on the basis of the consumption billed in the 12
months preceding the application,
(c) six months for debts exceeding the consideration of the average consumption of
3 months calculated on the basis of the consumption billed in the 12 months
preceding the application.
(5) The period of deferred payment shall be maximum 30 days.
(6) In respect of payment in instalments and deferred payment these provisions
may be derogated from only for the benefit of the indigent user.
(7) In addition to ensuring payment in instalments and deferred payment the
electricity trader shall after consulting with the authorised distribution network
operator draw the attention of the user to the option to install a prepayment
metering device. If the user was granted payment in instalments or deferred
payment, and fails to meet the criteria thereof, the electricity trader may make further
consumption subject to the installation of a prepayment metering device; the indigent
user shall be informed about this in the notification on granting payment in
instalments or deferred payment.
(8) If the indigent user switches traders or providers of universal services after
being registered, the previous trader or provider of universal services shall attest at
the termination of the previous contract for the purchase of electricity that the user
was granted deferred payment or payment in instalments in the previous 12 months
and that the agreements were fulfilled.
(9) If the electricity trader rejects the application of the indigent user for payment in
instalments or deferred payment, or the indigent user fails to meet the criteria of
payment in instalments or deferred payment, the authorised distribution network
operator shall, at the initiative of the electricity trader, inform the indigent user about
the installation of a prepayment metering device.
Vhr. Article 32 (1)
(2) A prepayment metering device shall be provided for all indigent users who
request it.
(3) The electricity trader, in cooperation with the authorised distribution network
operator, shall ensure the operation (top-up) of prepayment metering devices at
customer service departments and by electronic means.
(4) At the same time as installing the prepayment metering device, the authorised
distribution network operator shall inform the indigent user in writing about the use of
the prepayment metering device, and about the relevant contractual conditions.
(5)
(6) At the same time as installing the prepayment metering device, the electricity
trader and the indigent user shall agree on the settlement of any outstanding debts
accrued until the installation of the meter. The period of payment in instalments shall
not be shorter than
(a) 4 months for debts not exceeding the consideration of the consumption of 1
month considered over the same period of the previous year and calculated on the
basis of the consumption billed in the 12 months preceding the application,
(b) 10 months for debts exceeding the consideration of the consumption of 1 month
considered over the same period of the previous year and calculated on the basis of
the consumption billed in the 12 months preceding the application, but not exceeding
the consideration of the consumption of 3 months, or

(c) 12 months for debts exceeding the consideration of the consumption of 3


months considered over the same period of the previous year and calculated on the
basis of the consumption billed in the 12 months preceding the application.
During the period of payment in instalments the user shall not be required to pay
interests on payment obligations affected by the payment allowance.
(7) If a household customer requests his entry into the register of vulnerable
customers as an indigent user during or following disconnection from supply due to
debt, he may at the same time request the installation of a prepayment metering
device in the event of registration, under the conditions laid down in paragraph (6).
(8) The prepayment metering device shall in every case be installed by taking the
principle of minimum cost into account.
(9) In the agreement referred to in paragraph (6) the parties must lay down that if
the indigent user is delayed in completing the agreement, the trader may, at the topup of the prepayment metering device, use
(a) 25% of the amount paid by the indigent user in case of debts below
HUF 75 000, or
(b) 50% of the amount paid by the indigent user in case of debts equal to or above
HUF 75 000
to reduce the amount of the debt, provided that the trader has fulfilled its obligation to
provide information on the installation of the prepayment metering device in
accordance with the provisions of the VET and this Decree.
Vhr. Article 33 (1) Disabled household customers shall prove their eligibility for
being included in the register of vulnerable customers
(a) by submitting the form under Part A of Annex 23/b, which shall be filled in and
signed, and shall not be older than 30 days, and
(b) if
(ba) the customer receives allowance for the blind, by presenting the original of the
resolution or certificate evidencing eligibility issued by the body granting or paying the
allowance, which shall not be older than 30 days, or by submitting the form under
Part B of Annex 23/b, which shall be filled in and signed and shall not be older than
30 days;
(bb) the customer receives disability allowance, by presenting the original of the
resolution or certificate evidencing eligibility issued by the body granting or paying the
allowance, which shall not be older than 30 days, or by submitting the form under
Parts B and C of Annex 23/b, which shall be filled in and signed and shall not be
older than 30 days; or
(bc) if the disconnection from or interruption of electricity supply directly endangers
the life or health of the household customer or any person residing with him, by
submitting the form under Part C of Annex 23/b, which shall be filled in and signed
and shall not be older than 30 days.
(2) The submitted documents and copies of the presented documents shall be kept
by the authorised distribution network operator for 2 years after the termination of
eligibility.
(3) The nature of the disability which prevents the disabled consumer from
reading the meter, from communicating the metering data, from reading the bill or
from paying the bill at a location other than the service location and by means other
than in cash or the compliance with point (b)(bc) of paragraph (1) shall be attested
by the medical specialist, or, in the absence of such, by the general practitioner of the
customer by filling in the form under Part C of Annex 23/b in order to enable the

authorised operator to identify the nature and content of the special treatment
pursuant to legislation and the standard service agreement of the authorised
operator. If the competence of the National Rehabilitation and Social Affairs Office to
deliver an expert opinion covers the person concerned, the medical specialist and the
general practitioner shall fill in the form under Part C of Annex 23/b on the basis of
this expert opinion.
Vhr. Article 34 (1) A person who receives allowance for the blind or disability
allowance shall not be required to be afforded special treatment as a disabled
consumer as corresponds to his personal circumstances if an adult person who is not
a disabled consumer resides with him.
(2) Disabled consumers may exercise their rights arising from protection only at one
service location.
(3) On grounds of a disabled person covered by point (b)(bc) of Article 33(1)
residing with them, users who are not regarded as disabled persons may request
their entry into the register of disabled consumers, but with reference to the same
disabled person only one service location of only one user can be included in the
register as eligible for protection.
(4) Special treatment granted to disabled consumers covered by points (b)(ba) and
(bb) of Article 33(1) may mean the following:
(a) monthly (interim) meter reading at the service location,
(b) paying bills in cash at the service location,
(c) establishment of a metering facility different from the usual, but complying with
technical and safety standards,
(d) special assistance provided in accordance with the standard service agreement
of the authorised operator concerned, for example, bills printed in larger font sizes,
explanation of the bill at the site, translation of bills, and
(e) other services specified in the standard service agreement of the authorised
operator concerned, which make participation in electricity supply easier for disabled
persons.
(5) When submitting the application for entry in the register of disabled consumers,
the household customer shall make a statement in which he shall choose from the
services referred to in paragraph (4) or from other services rendered by the
authorised operators concerned. Provision of the service applied for shall commence
no later than the 30th day following the registration. Those persons who, in spite of
being requested to do so, fail to make a statement in respect of the services to be
rendered in the framework of special treatment shall not be registered.
(6) The authorised operator concerned shall not be required to fulfil those requests
of persons included in the register of disabled consumers which are not supported by
submitted documents.
Vhr. Article 35 (1) The certificate issued in accordance with Part C of Annex 23/b
shall contain the contact details of the person who is to be notified if the electricity
supply of the disabled consumer covered by point (b)(bc) of Article 33(1) is
disconnected, suspended or interrupted. In the case of interruption or scheduled
suspension of supply, the rules of notifying household customers about scheduled
suspension shall apply to the date of notification.
(2) At the request of disabled consumers covered by point (b)(bc) of Article 33(1),
consumers included in the register of disabled consumers with reference to a
disabled person falling within the above scope, or the person to be notified the
authorised distribution network operator shall provide an emergency power supply for
the period of the scheduled switch-off no later than from the day preceding the initial

date of the scheduled switch-off; said power supply shall have the capacity
necessary for the energy supply of machines and equipment necessary for the
medical treatment or for maintaining the vital functions of the disabled person
concerned.
(3) In order to prevent the consequences of an unforeseeable malfunction, the
authorised distribution network operator shall, no later than on the 30th day after the
registration, deploy an uninterruptible power supply in due time at the service location
specified in the application, which shall have the capacity necessary for the energy
supply of machines and equipment necessary for the medical treatment or for
maintaining the vital functions of the disabled consumer concerned and which shall
meet the criteria agreed on with the disabled customer covered by point (b)(bc) of
Article 33(1), the consumer included in the register of disabled consumers with
reference to a disabled person falling within the above scope, the person to be
notified, and, if necessary, the organisation providing medical care.
(4) The authorised distribution network operator shall not be held liable for the
consequences resulting from any hidden defects of the emergency power supply or
uninterruptible power supply which could not be recognised by it, and shall not be
required to operate, maintain or repair the emergency power supply or the
uninterruptible power supply.
(5) When deploying the emergency power supply or uninterruptible power supply
the authorised distribution network operator shall prepare a handover report and shall
have it signed by the user included in the register of disabled consumers or his
representative. Within the limits set forth in the standard service agreement of the
authorised distribution network operator, the handover report shall in compliance
with the principle of minimum cost provide for the detailed agreement on
installation, operation maintenance and repair.
(6) The authorised distribution network operator shall inform users who are included
in the register of vulnerable customers as disabled consumers as of 15 February of
the reference year, and who must reattest their eligibility referred to in Article 65(4) of
the VET about this obligation of theirs until March 1 of the reference year in writing, in
an understandable manner, and shall send them the data sheet under Annex 23/b.
The authorised distribution network operator shall delete those vulnerable customers
subject to reattestation of eligibility from the register who fail to fulfil this obligation
until 31 March of the reference year. As regards the establishment of the data of the
user the provisions of Article 65(4) of the VET shall apply.
(7) Disabled consumers shall reattest their eligibility under Article 65(4) of the VET
for the first time in the calendar year following their registration.
Vhr. Article 36 (1) Users included in the register of disabled consumers may modify
their statement referred to in Article 34(5) maximum two times a year. If the user
modifies his previous statement, provision to the user of the service intended to be
used shall commence no later than the 30th day after the receipt of the request for
modification. The modification shall be indicated in the register.
(2) Any stipulation making the benefit and special treatment provided by the
authorised operator subject to consideration shall be null and void.
Vhr. Article 37 (1) Vulnerable customers shall inform the authorised operator
concerned in writing about the change or termination of the circumstance conferring
entitlement for protection within 15 days. The authorised distribution network operator
shall indicate the change in the register within 8 days after the receipt of the
notification on the change of circumstances conferring entitlement to protection, or, in
the case of the termination of such circumstances, shall without prejudice to the

obligation set forth in Article 65(4) of the VET in respect of the establishment of the
data of the user delete the vulnerable customer from the register.
(2) If a vulnerable customer or a person receiving support conferring entitlement to
protection who is residing with a customer moves to another service location, the
change shall be notified in accordance with the rules pertaining to changes in the
person of users, and a new application may be submitted on the basis of the contract
concluded at the new service location.
(3) If the new service location is located within the territory of operation of the same
authorised distribution network operator as the previous one, the vulnerable customer
need not be deleted from the register on the basis of the notification of change;
instead the authorised operator concerned shall indicate the notified changes in the
register.
(4) The provisions of paragraph (2) shall also apply if a vulnerable customer
switches electricity traders. The authorised distribution network operator shall inform
the new electricity trader about the existence of protection and the data entered in
the register of vulnerable customers.
Resale of Electricity
VET Article 66 (1) Users may resell electricity to purchasers through private
lines if they have authorisation to set up a private line, or if the private line is
located within a single building. As regards users who set up a private line
within a single building for the purposes referred to in Article 39(1)(b) and (c),
the provisions of Article 66(2) to (7) and Article 66/A pertaining to authorised
operators of private lines shall apply to the resale of electricity as appropriate.
(2) The authorised operator of the private line may terminate the legal
relationship between itself and the purchaser only if the latter breaches his
commitments stipulated in the relevant agreement, or if the legal relationship
between the authorised operator of the private line and the authorised network
operator is terminated. If there is a legal dispute pending between the
authorised operator of the private line and the purchaser concerning the
breach of contract, and the parties are unable to reach an agreement in terms
of further supply to the purchaser, resale shall continue under the original
terms and conditions stipulated in the contract until the dispute is settled
finally.
(3) If the purchaser decides to purchase electricity only under Article 56(2)
rather than through resale, he must proceed in accordance with Article 39/B.
(4) Resale of electricity shall not be regarded as trade if the average price of
the electricity resold in this way does not exceed the average price of the
electricity purchased by the authorised operator of the private line during the
same financial year. As regards the documents of the authorised operator of
the private line to verify compliance with the provisions of this paragraph, the
provisions of Article 168(2) and (3) shall apply as appropriate.
(5) For the purposes of paragraph (4):
(a) the average price of purchased electricity shall be calculated on the basis
of the quotient of the acquisition cost of all electricity the authorised operator
of the private line has purchased during the financial year including the costs
of balancing supply and the quantity of electricity purchased; and
(b) the average price of electricity resold shall be calculated on the basis of
the quotient of the turnover from all electricity resold during the financial year
and the quantity of electricity resold.

(6) If a trading licence is issued for the authorised operator of the private line,
it shall no longer be entitled to resale. In such cases purchasers shall become
users under Article 39/B. The authorised operator of the private line holding a
trading licence shall inform purchasers that it has obtained a trading licence
and the legal effects thereof in accordance with the provisions of the Vhr.
(7) In addition to the average purchase price referred to in point (a) of
paragraph (5) the reselling user may claim the average network access fee paid
by him (as the fee of mediated service), the financial assets under Article 147
and taxes, as well as the costs of the operation of the private line including
the costs of the network losses of the private line divided by the total amount
of resold electricity as separate items on his bill.
VET Article 66/A (1) An authorised operator of a private line who resells
electricity to purchasers must inform the electricity trader with whom the
operator is in a contractual relationship about the reselling activity under the
conditions laid down in the Vhr.
(2) Electricity traders shall be authorised to request the authorised network
operator to disconnect the authorised operator of the private line from
electricity supply for reasons of late payment only if all of the following criteria
apply:
(a) if the payment of the authorised operator of the private line is delayed by
at least 60 days,
(b) the consultation with the electricity trader initiated by the authorised
operator of the private line in respect of deferred payment or payment in
instalments did not produce any results, and
(c) the electricity trader has notified the authorised operator of the private line
about the debt and the possibility of disconnection at least twice in writing, and
has placed a visible notification at the service location for purchasers
connected to the private line about the debt and the possibility of
disconnection.
(3) If the authorised operator of the private line disconnected from electricity
supply settles its debts owed to the electricity trader, the electricity trader must
initiate the reconnection of the authorised operator of the private line to supply
within 24 hours.
(4) The authorised network operator shall fulfil the requests specified in
paragraphs (2) and (3) without delay.
Private Lines
Vhr. Article 12 (1) The authorised operator of a private line must ensure the
uninterrupted operation of the private line in accordance with the provisions of the
VET, this Decree and other relevant legislation, and must maintain and develop the
private line in such a way as to ensure compliance with the quality requirements laid
down in legislation, official specifications and standards.
(2) The provisions of Act IV of 1959 on the Civil Code (hereinafter referred to as:
Ptk.) shall apply to the legal relationship between the owner and the operator of the
private line, and to the legal relationship between the owner or operator of the private
line and purchasers connected to the private line, subject to the derogations set forth
in this Decree.
(3) The operator of the private line shall keep a network log about outages, network
losses, malfunctions and voltage variations affecting purchasers and users supplied

from the private line, and about its correspondence with the users of its private line
service.
(4) The authorised network operator, the purchaser and the user shall have access
to those parts of the network log which pertain to them, shall be provided with copies
or extracts of such parts if they request so, may request information from the operator
of the private line in relation to the incidents referred to in paragraph (3), and may
indicate their counter-opinion or position in the network log. The operator of the
private line must provide access to the log, and must provide requested information
in writing.
(5) Unless otherwise provided for by law, the operator of the private line shall keep
the network log and its correspondence with the users of its private line service for
one year.
(6) The operator of the private line shall provide private line service to purchasers
and users for a reasonable, cost-based fee. If the parties do not agree otherwise on
the fee of the service, the basis of the fee shall be the certified costs of the line
service, and the cost of capital calculated on the basis of said costs as published by
the Office and applied to the asset value of the operated line.
(7) The operator of the private line, in relation to the resale of electricity and the line
service subject to the provisions set forth in paragraph (6), and the operator of the
private line subject to authorisation, in relation to the line service subject to the
provisions set forth in paragraph (6), shall keep separate records which ensure
transparency, non-discrimination and the exclusion of cross-financing in respect of
their other activities. If the operator of the private line is company, it must prepare a
separate summary evaluation of its operation relating to such activities.
(8) If the operator of the private line supplies electricity to purchasers by resale
under the VET, on the bill issued for the rendered service it must separately indicate
the price of electricity and the price of the rendered line service, as well as the
network access fee payable by the operator of the private line for the service
rendered to purchasers and for the use of the public utility system. If the operator of
the private line is not required to issue a bill under the provisions of specific other
legislation a certificate with the same content shall be issued instead of a bill shall.
(9) The operator of the private line shall not restrict the rights of purchasers and
users referred to in paragraphs (4) to (6).
(10) If the purchasers purchasing electricity through resale jointly request the Office
to declare the private line to be subject to authorisation, the documents created in
connection with the provisions of paragraph (4) shall be attached to the application.
(11) During the procedure referred to in Article 66(8) of the VET the Office may
request the owner and the operator of the private line to submit any statements,
documents and other evidence which it deems necessary for delivering a resolution.
The owner or the operator of the private line shall fulfil the request of the Office within
the deadline set. If the client hinders the procedure, the Office may apply the
sanctions referred to in points (a) to (b) of Article 96(1) of the VET.
(12) The operator of the private line shall inform the users and purchasers
concerned about scheduled annual maintenance and renovation works, and about
the initial date and projected duration of suspension of service resulting from such
works at least 15 days before the commencement of such suspensions in writing.
Vhr. Article 13 (1) The agreement concluded with the purchaser or the user for
connecting to the private line, for the provision of private line service, and for the
resale of electricity in the case of purchasers shall contain in particular the following:
(a) the location of the connection point or points;

(b) the capacity (kVA) and technical specifications of the connection point of the
private line;
(c) the capacity available at the connection point in the case of purchasers and
users (kVA), with an indication of whether the available capacity is transmitted to the
purchaser or user temporarily or permanently;
(d) the technical specifications of the consumer equipment of the purchaser or the
user;
(e) if necessary, the maximum permissible extent of the effect of the consumer
equipment of the purchaser or user on the network, and the technical solutions for
reducing such effects;
(f) the financial and technical conditions for the connection to the private line, and
the rules of connection;
(g) the technical specifications of the electricity supplied;
(h) the rules of availability pertaining to the operator;
(i) provisions pertaining to metering the consumption of electricity supplied through
the private line and the private line subject to authorisation, with particular reference
to the obligations of the operator, purchasers and users relating to metering, the
metering periods, and the rules of the property rights, placement, installation,
maintenance and replacement of meters;
(j) the rules of billing and billing complaints;
(k) the detailed rules of paying fees;
(l) the obligation of mutual information, and the rules of data provision between
parties, with particular reference to the notification referred to in Article 12(12);
(m) the procedure of managing the complaints of purchasers and users;
(n) provisions pertaining to the network log;
(o) the rules of the restriction applicable in the case of scheduled annual
maintenance, malfunction and other operational incidents;
(p) the cases of breach of contract, with particular reference to unauthorised
purchase, and the cases of the temporary or permanent exclusion of purchasers and
users from the private line service;
(q) provisions pertaining to legal remedy.
(2) The provisions of Article 12(3) to (12) shall apply to private lines not subject to
authorisation only if the private line supplies purchasers who are separate from the
owner or operator of the private line legally or organisationally.
Resale of Electricity
Vhr. 38. (1) The average network access fee paid by the reselling user and
claimable from the purchaser, as referred to in Article 66(7) of the VET, shall mean
the quotient of the amount of the fee included in the last bill on network access fees
issued by the reselling user without taxes and the quantity expressed in kWh being
the basis of the consumption-based fee indicated on the bill. If there is a difference
between the electricity consumption per contracted capacity unit of the purchaser and
the reselling user, the effect of such difference may be taken into account when
calculating the average price.
(2) Following the end of a given financial year the reselling user and the purchaser
shall settle the difference between the prices of electricity and network access fees
claimed in the bills on resale and the amounts calculated using the actual average
electricity purchase price and average network access fee for the given financial year
within 30 days.

(3) The user shall not resell purchased electricity to another person outside the
service location.
Vhr. Article 39 (1) In its notification referred to in Article 66/A(1) of the VET the
authorised operator of the private line shall inform the electricity trader about the
number of purchasers supplied through resale, and about its estimated annual
electricity demand broken down by purchasers.
(2) If the authorised operator of the private line informs the purchaser that it has
submitted an application for an electricity trading licence to the Office and resale will
thereby terminate, the authorised operator shall act in accordance with the provisions
of Article 13/C(5) in order to ensure the uninterrupted electricity supply of the
purchaser.
(3) If the purchaser makes the decision referred to in Article 66(3) of the VET, he
may terminate the contract for resale with a period of notice of at least 60 days.
(4) If the reporting obligation referred to in Article 66/A(1) of the VET is not met, the
electricity trader may apply the general rules pertaining to the disconnection of users
to the reselling authorised operator of the private line instead of the provisions of
Article 66/A(2) of the VET.
Declaring Lines to be Public
Vhr. Article 40 (1) During the procedure for the classification of lines or equipment
(for the purposes of Articles 40 to 45 hereinafter jointly referred to as: network
components) as public or for the reclassification of network components the Office
shall assess the public nature of each network component individually, subject to the
exception set forth in paragraph (2).
(2) Low and medium-voltage network components, which are established in
accordance with Article 24(1) to (2) of the VET and the property right of which is
obtained by the authorised distribution network operator, shall be considered as
public distribution network components.
(3) Only network components owned by the transmission system operator shall be
considered as part of the transmission network.
(4) The provision of paragraph (3) shall not apply to transmission system
managers.
Vhr. Article 41 (1) The following shall be attached to applications for classification
or reclassification:
(a) the designation of the network component as indicated in the Operating or
Distribution Code,
(b) indication of the nominal voltage of the network component,
(c) description of the role of the network component in the electricity system,
(d) description of the number of connecting users and the volume of their
consumption,
(e) the opinion of the transmission system operator in the case of high-voltage
network components.
(2) In addition to the data specified in paragraph (1), the following shall be attached
to the application in the case of direct lines, production lines or private lines:
(a) description of the technical condition of the network component,
(b) the statement of the authorised network operator on the estimated costs of and
the time needed for the establishment of the public utility system in order to supply
purchasers or users who are supplied or intended to be supplied through the line,
(c) the statement of the authorised network operator on the foreseeable costs of
operation by the authorised network operator in accordance with legislation should

the line be classified as public, and on the developments of the line deemed
necessary by the authorised network operator, and the estimated costs of such
developments,
(d) the statement of the electricity purchaser supplied through the direct or private
line on the fact that he is in possession of a valid contract or pre-contractual
agreement for the purchase of electricity after the line is declared to be public,
(e) the contract or pre-contractual agreement of the authorised operator of the
direct or private line concluded with the authorised network operator, in which the
parties settle the property and cable rights status of, and the rules of the operation of
the line classified as public, with effect from the date on which the line is declared to
be public, and
(f) description of the number of users and purchasers connected to the direct or
private line, and the volume of their consumption.
Vhr. Article 42 (1) Procedures for reclassifying public network components as
transmission or distribution network components shall be launched at the request of
the authorised network operator concerned, or, for the purpose of ensuring the safe
operation of the electricity system, ex officio.
(2) Procedures for the classification of production or direct lines as public lines,
more specifically as transmission or distribution network components, shall be
launched at the request of the owner or operator of the line, or, in the cases referred
to in Article 86(5) of the VET, ex officio.
(3) If an application for the classification of a network component as public, or for
the reclassification of such a component is submitted, the Office may request the
authorised network operator to deliver its opinion. The authorised network operator
shall deliver its opinion concerning the application to the Office within 30 day after the
receipt of the Offices request.
(4) The Office shall request the transmission system operator to deliver its opinion
on the classification of high-voltage network components as public and on the
reclassification of such components. The transmission system operator shall deliver
its opinion to the Office within 30 days after the receipt of the Offices request.
Vhr. Article 43 A network component which is declared to be public may be
reclassified only in case of a change in the details under points (a) to (c) and (e) of
Article 41(1) or in the nature of the component as a transmission or distribution
network component.
Vhr. Article 44 (1) If a proceeding is launched ex officio, the Office shall obtain the
statement of the authorised operator of the direct, production or private line, and the
authorised network operator concerning the details under Article 41(1) to (2) and the
classification or reclassification.
(2) The authorised network operator shall cooperate with the authorised operator of
the direct. production or private line during the procedure for the classification of a
component as public.
(3) In order to ensure the conclusion of the contract referred to in Article 41(2)(e)
the Office shall call on the authorised network operator and the authorised operator
of the direct or private line to reach an agreement. If the parties do not manage to
reach an agreement, the Office shall, in accordance with paragraph (1), request the
parties to make statements, and shall issue a resolution on the proportionate
distribution fee for the line declared to be public, and on the settlement of operational
costs between the authorised operator and the authorised operator of the network
component.

Vhr. Article 45 (1) The Office shall decide on the classification of a network
component as public, and on the reclassification of such components in view of the
interoperability of the electricity system, the security of supply, the efficient and
uninterrupted supply of electricity, the number of users or purchasers connecting to
the given network component and the volume of their consumption, the network
development plan under Article 25 of the VET, and other circumstances which are
relevant in the given case.
(2) The Office shall not refuse to classify a network component as public, or to
reclassify such a component, if it is included in the network development plan
approved by the Office. The Office shall withdraw its resolution on classifying a
network component as public if the network component has not been implemented
yet, but is no longer included in the approved network development plan.
(3) At the same time as classifying a direct, production or private line as public, the
Office shall modify the operating licence of the authorised network operator ex officio.
(4) In the event that a direct line or private line is classified as public, the authorised
network operator shall conclude a network connection and network use agreement
with the purchaser supplied through the direct line or private line if the purchaser so
requests. If the connection to an existing private or direct line does not require any
modification in terms of technical conditions and the volume of available capacity, the
purchaser supplied through the direct or private line shall have the right of connection
free of charge and without any additional reimbursement liability at the connection
point through which he had been connected to the private or direct line as a
purchaser before the network component was declared to be public.
(5) If the direct or private line is refused to be classified as public, the Office may
require the authorised network operator to establish a public utility system until the
deadline set by the Office in order to supply electricity to purchasers or users
supplied through the direct or private line.
(6) Until the connection to the public utility system is established, the authorised
operator of the private line shall provide access to the private line under the same
conditions, and shall operate and maintain the direct line in accordance with the
provisions of the VET, this Decree and relevant legislation.
Chapter X
NETWORK CODES
VET Article 67 The transmission system operator, upon consultation with the
authorised operators and, via their representative organisations, with the
users, shall develop
(a) an Operating Code containing the rules, procedures and methods
pertaining to the technical functions of the electricity system and the
transmission network,
(b) a Commercial Code containing the essential provisions relating to trade in
electricity, the minimum content elements of the collection, processing and
provision of tariff metering data, the cross-border transmission of electricity,
and ancillary services.
VET Article 68 Authorised operators and operators of power plants which are
not subject to authorisation and which are connected to the electricity system
shall cooperate in accordance with this Act and specific other legislation

adopted under authorisation of this Act, and with Electricity Supply Codes as
approved by the Office.
VET Article 69 Distributors, upon consultation with the authorised operators
and, via their representative organisations, with the users, shall develop a
Distribution Code to regulate the operation of the distribution network.
VET Article 70 (1) The Electricity Supply Codes shall be drawn up in view of
the security and quality requirements of supply, equal treatment, open access
to transmission and distribution networks and the principle of minimum cost.
(2) Consultation in connection with the development and review of the
Electricity Supply Codes shall be conducted by the regulatory committees set
up and functioning according to specific other legislation and comprising the
delegates of authorised operators and the representative organisations of
users.
(3) The rules of procedure for the consultation referred to in paragraph (2)
shall constitute an integral part of the Electricity Supply Codes.
(4) The Electricity Supply Codes and amendments thereto shall be approved
by the Office; the Office may refuse to grant approval or render its approval
subject to certain conditions.
(5)
(6) The Office, upon the failure of consultation with authorised operators and
network users, shall have powers to amend the Electricity Supply Codes by
way of a resolution adopted ex officio, if the codes in question are an
impediment to effective market competition or to the provisions pertaining to
the price control regime, or if they allow for unjustified discrimination.
(7) The prevailing consolidated text of the Electricity Supply Codes and their
subsequent amendments shall be made available, together with the approval of
the Office, by the authorised operators responsible for the preparation of the
codes on their official websites.
(8) The detailed regulations concerning the contents of the Electricity Supply
Codes shall be laid down in specific other legislation.
VET Article 71 Authorised operators shall exchange the data and information
specified in the Electricity Supply Codes with each other, and shall supply
them to the transmission system operator as well, according to the procedure
and within the time limit specified therein with a view to ensuring the secure
and efficient operation of the electricity system.
VET Article 72 (1) The transmission system operator, authorised distribution
network operators and the authorised operator of the regulated electricity
market, and with the exceptions set out in paragraph (5) the electricity
traders and authorised producers, shall adopt their standard service
agreements.
(1a) Authorised operators required to adopt a standard service agreement
shall operate a homepage.
(2) The standard service agreement shall specify the general technical,
commercial, billing and payment terms of contracts for the services provided
by authorised operators.
(3) Subject to the derogation set forth in paragraph (4a), the standard service
agreements adopted by authorised operators upon consultation with the
representative organisations of users shall be approved by the Office after
having obtained the preliminary opinion of the consumer protection authority.
The Office shall refuse to approve the standard service agreement or any

section of the standard service agreement, if found in violation of legislation or


the Electricity Supply Codes, or if otherwise harmful to substantial legitimate
interests.
(4) The Office following consultation with authorised operators and network
users, and upon the failure of such consultation shall have powers to order
the authorised operators affected, by way of a resolution adopted ex officio, to
amend their standard service agreement with a view to enforcing the
provisions of this Act and in the decree issued for the implementation thereof.
(4a) The draft of the standard service agreement of the transmission system
operator shall be approved by the Office after having obtained the opinions of
authorised distribution network operators, electricity traders and authorised
producers. The transmission system operator shall submit the draft of its
standard service agreement, together with the received opinions, to the Office
for approval.
(5) Upon request, the Office may exempt producers and electricity traders
which are subject to authorisation under this Act from the obligation to prepare
standard service agreements, if they supply electricity to an authorised
operator or a single user only, and the contract concluded with the authorised
operator or user meets the requirements laid down in this Act, in legislation
issued under the authorisation thereof, in the Electricity Supply Codes and in
the Offices resolutions.
(6) Any authorised operator that has been exempted from the obligation to
prepare a standard service agreement shall be permitted to supply electricity
under circumstances other than those specified in paragraph (5) only upon the
Offices approval of their submitted standard service agreement prior to the
commencement of sales.
(7) The mandatory content elements of standard service agreements, their
mandatory provisions, the general requirements concerning their structure, the
provisions relating to public consultation, and the formal requirements
concerning the submission of standard service agreements shall be laid down
in specific other legislation.
Electricity Supply Codes
Vhr. Article 46 (1) In order to ensure the efficient operation of the competitive
electricity market and the provision of appropriate information to market participants
the Electricity Supply Codes shall in particular govern the following fundamental
subjects:
(a) the subject and scope of the Electricity Supply Codes,
(b) the identification data of standards to be applied,
(c) the list of specific definitions applied in the Codes,
(d) general rules of quality and quality control,
(e) recommendations pertaining to the relationship between authorised operators
on the one hand and network users falling outside the scope of the Electricity Supply
Codes on the other hand, which must be included in the standard service
agreements of authorised operators,
(f) the system and rules of communication and information exchange between the
subjects of the Electricity Supply Codes, the consultation mechanism,
(g) the possibilities of making comments on the provisions of the Electricity Supply
Codes, and the procedure of consulting about requests for amendments and of
submitting such requests to the Office,

(h) the list of annexes and directives, and the index of changes.
(2) In order to ensure secure, uninterrupted supply to users at an appropriate
quality, the Electricity Supply Codes shall provide in particular for the following under
the fundamental subjects:
(a) provisions pertaining to the authorised operators of the electricity system and
the operators of micro power plants, whether connected, obliged to connect or
intending to connect to the system,
(b) the basic requirements for an interoperable electricity system, drawn up
separately for each field.
(c) rights relating to organisation and control, and the presentation of such relations,
(d) terms not defined in legislation and the application of such terms,
(e) within the framework of metering and settlement of accounts:
(ea) measurements to be carried out, the details of the certified billing of the
performance of contracts, the summary of metering data, and the forwarding of such
data to the transmission system operator,
(eb) the technical specifications of equipment used for the tariff metering of
electricity consumption and generation,
(f) within the framework of network access:
(fa) the detailed technical conditions of open access to the public utility system, the
procedure of publishing available free network capacities,
(fb) the schedule of activities necessary during the application of the rules
pertaining to access to the public utility system
(fc) the detailed rules of refusing access to the public utility system and those of the
restriction or suspension of transmission and distribution,
(fd) the conditions of connecting customer production equipment to the network,
(g) the general technical conditions of connecting private lines subject to
authorisation to the public utility system,
(h) within the framework of the operation and improvement of transmission and
distribution networks:
(ha) the rules of controlling the operation of distribution networks not influencing the
operation of the transmission network,
(hb) the procedure of the establishment and notification of lines not included in the
network development plan or proposal but subject to a notification obligation,
(hc) the procedure of notifying the establishment of direct lines and network
components to the transmission system operator,
(hd) the detailed rules of controlling the operation of the transmission network and
the distribution networks influencing the operation thereof,
(he) the subjects on which the authorised network operator and the owner of the
third-party network component or the owner of the real estate on which the network is
located must agree,
(i) within the framework of data and information provision:
(ia) the procedure of data and information provision by authorised network
operators to each other and to the transmission system operator in order to facilitate
the safe and efficient operation of the electricity system,
(ib) the procedure of informing users and authorised operators about the date and
projected duration of suspension of service due to scheduled maintenance or
renovation,
(ic) the procedure of preparing the output and energy consumption account for the
system, and the procedure of informing the Minster for Energy Policy (hereinafter

referred to as: minister) and the Office about the projected development of the
account, power plant capacities, public utility systems and consumption,
(id) the following data to be provided by the persons referred to in Article 152 of the
VET and by users to the transmission system operator:
1. notification of timetables,
2. notification of daily modifications of the timetable,
3. offers for transmission capacities at cross-border interconnections,
4. technical data of cross-border transmissions and agreements on transmission
through the Hungarian control block,
5. notification of offers for activities necessary for the provision of ancillary services,
6. forwarding of metering data of the distribution network,
7. schedule of maintenance,
8. data necessary for the performance of the tasks of the transmission system
operator referred to in Article 16 of the VET,
9. metering and calibration data determined on the basis of readings under Article
40(3) of the VET,
10. basic network development and network planning data,
(ie) the following data to be provided by the transmission system operator to
persons under Article 152 of the VET with whom it is engaged in relations and to
users:
1. acknowledgement of the receipt of the data referred to in point (id),
2. logged data on availability,
3. notification on the restriction or withdrawal of the obtained transmission capacity
rights,
4. data of the metering readings carried out by the transmission system operator
and authorised distribution network operators under Article 40 of the VET and the
data of the quantitative settlement under Article 41 of the VET, in the format required
for the issuance of bills,
5. itemised acknowledgment of import, export and transmission through the
Hungarian control block,
6. authorisations for amending or derogating from the timetable,
7. in the case of a malfunction in the electricity system, data on quantity and
duration, and instructions for recovery,
8. data on the offers selected from among the offers received on the market of
activities necessary for the provision of ancillary services,
(if) the following data provided by the transmission system operator to persons
under Article 152 of the VET with whom it is not engaged in relations and to the
users:
1. provision of data on transmission capacities available at cross-border
interconnections,
2. publication of offers received at the auction of cross-border interconnection
transmission capacities and the clearing prices established,
3. amount of reserves intended to be contracted,
4. preliminary summary data of scheduled shut-downs, and subsequent summary
data of the scheduled or non-scheduled shut-downs of the previous day in production
units with a capacity over 100 MW,
5. data on the quantity and clearing price of balancing supply provided on the
system level.
(j) in connection with malfunctions and restrictions:

(ja) provisions for the case of a malfunction of the electricity system, or the
suspension or restriction of supply,
(jb) actions to be taken in the case of a disturbance of supply which does not reach
the level of electricity crisis,
(k) the procedure and rules of determining the costs of commissioning and
operation if the production equipment is used by the transmission system operator
according to Article 5(3) of the VET, and
(l) the rules of procedure for coordinating demand-side management measures, and
the relevant tasks of the transmission system operator.
(3)
(4) The prevailing consolidated texts of the Operating and Commercial Codes, and
the Distribution Code shall be published by the transmission system operator and the
authorised distribution network operators respectively together with the approving
resolution of the Office on their own homepage. The approved code shall be sent to
the Office by the authorised operator in electronic format, and shall then be published
by the Office on its homepage.
(5) For the purposes of point (i) the data referred to in points (ie) and (if) shall not
be considered as business secrets.
Vhr. Article 47 (1) In accordance with the provisions of Article 46, the provisions of
the Operating Code shall cover at least the following:
(a) the technical operation of producers participating in the interoperable electricity
system and that of the transmission system operator, as well as the conceptual basis
and planning of such operation,
(b) scope of ancillary services,
(c) transmission system operation, handling of malfunctions,
(d) registration of operational incidents,
(e) the procedure of data and information provision relating to malfunctions and
operational incidents,
(f) quantitative account of electricity supply, including the infrastructural systems
necessary for operation,
(g) the form, mandatory content elements and assessment criteria of documents to
be prepared by the transmission system operator on the forecast of consumer
demands and the medium and long-term capacity improvements of the electricity
system on the sources side, and of network development plans to be prepared by
authorised network operators, and
(h) the rules of cooperation between authorised network operators during the
preparation of the network development plan of the electricity system.
(2) In accordance with the provisions of Article 46, the provisions of the Commercial
Code shall cover at least the following:
(a) rules relating to trade in electricity,
(b)
(c) the detailed rules of balancing group accounting,
(d) rules of the procurement and use of capacities necessary for providing ancillary
services,
(e)
(f) the procedure of determining balancing supply, and the pricing rules and
accounting of balancing supply,
(g) the relationship between the authorised operator of the regulated electricity
market and the transmission system operator, and

(h) the rules of the cross-border import or export of electricity, including the
agreements on cross-border transmissions at the various borders.
(3) In accordance with the provisions of Article 46, the provisions of the Distribution
Code shall cover at least the following:
(a) the technical operation of the authorised distribution network operator,
(b) the conditions for the connection of power plants connecting to the distribution
network, including the cases where a feasibility study and a connection plan is
necessary, and their general content elements, and
(c) the rules of profile-based consumption and settlement of accounts.
(4) The Electricity Supply Codes shall be in conformity with each other.
General Rules of Drawing Up the Electricity Supply Codes
Vhr. Article 48 (1) The consultation relating to the preparation, maintenance and
revision of the Electricity Supply Codes shall be carried out by the regulatory
committees set up in accordance with Articles 49 to 50 of this Decree.
(2) The transmission system operator and the authorised distribution network
operators shall arrange for the preparation of the Operational and Commercial Code,
and of the Distribution Code, respectively, in such a way as to ensure the security
and quality of supply, neutrality of competition, open access to the public utility
system and compliance with the principle of minimum cost.
(3) The procedure of the amendment and revision of the Electricity Supply Codes,
and the detailed rules of the operation and composition of the regulatory committees
shall be included in the relevant Electricity Supply Code in accordance with this
Decree.
(4) The transmission system operator and authorised distribution network operators
shall make all information and documents necessary for successful consultation
available to the members of the regulatory committees within such time as to enable
the delivery of a substantial opinion, shall cooperate with the regulatory committees,
and shall consult with committee members as required.
(5) The detailed content of the data provision between authorised operators and
network users necessary for the uninterrupted operation of the electricity system, as
stipulated in specific other legislation, shall be laid down in the Electricity Supply
Codes.
Regulatory Committees
Vhr. Article 49 (1) The transmission system operator shall set up and operate
separate regulatory committees in order to ensure consultation on the preparation,
amendment and revision of the Operating Code and the Commercial Code.
(2) The transmission system operator with the involvement of the regulatory
committee shall perform preparatory work so as to enable the entry of necessary
amendments into the Operating Code and the Commercial Code and the submission
of such amendments to the Office for approval within 90 days after the publication of
the relevant amendments of legislation.
(3) In addition to the transmission system operator, the following shall participate
and have voting rights in the regulatory committee in accordance with the provisions
of the relevant Electricity Supply Code:
(a) the groups of authorised operators concerned through the representatives
elected by them, and

(b) the representative organisations of users through the representatives elected by


them.
(4) The various groups of authorised operators and the representative
organisations of users shall operate according to their own rules of procedure, based
on which they shall elect their own representatives. In the absence of a
representative the authorised operators and users concerned may send their
observations to the transmission system operator directly.
(5) The date, agenda, and the content of those items on the agenda of the meeting
of the regulatory committee which concern the amendment of the Operating Code or
the Commercial Code shall be published by the transmission system operator on its
homepage no later than 7 days before the meeting.
(6) The various groups of authorised operators and network users shall make
proposals on the provisions and rules pertaining to their own activities, and on their
amendment, and shall send such proposals to the transmission system operator
during the preparation, amendment and revision of the Operating Code and the
Commercial Code.
(7) The regulatory committee shall issue a reasoned opinion on the draft, which
shall contain any rejected proposals and observations of members, as well as the
reasons of rejection.
(8) The transmission system operator shall be held liable for the activity of the
regulatory committee being performed in accordance with the rules of procedure. The
transmission system operator shall send the draft of the Operating and Commercial
Codes, and the minutes of the meeting of the regulatory committee to the Office
within 7 days after the meeting, together with the statements of reasons.
(9) The convening of the regulatory committee may be initiated by any person
concerned through their representatives with the transmission system operator.
Vhr. Article 50 (1) The authorised distribution network operators shall set up and
operate a regulatory committee in order to ensure consultation on the preparation,
amendment and revision of the Distribution Code.
(2) The authorised distribution network operators with the involvement of the
regulatory committee shall perform preparatory work which enables the entry of
necessary amendments into the Distribution Code and the submission of such
amendments to the Office for approval within 90 days after the publication of the
relevant amendments of legislation.
(3) In addition to the authorised distribution network operators, the following shall
participate and have voting rights in the regulatory committee in accordance with the
Distribution Code through their appointed representatives:
(a) the groups of authorised operators concerned, and
(b) the operators of micro power plants not subject to authorisation, and the
representative organisations of users.
(4) The various groups of authorised operators and network users shall operate
according to their own rules of procedure, based on which they shall elect their own
representatives. In the absence of a representative the authorised operators,
operators of micro power plants not subject to authorisation, and users concerned
may send their observations to the authorised distribution network operators directly.
(5) The date, agenda, and the content of those items on the agenda of the meeting
of the regulatory committee which concern the amendment of the Distribution Code
shall be published by the authorised distribution network operators on their
homepage no later than 7 days before the meeting.

(6) The various groups of authorised operators and network users shall make
proposals on the provisions and rules pertaining to their own activities, and on their
amendment, and shall send such proposals to the authorised distribution network
operators during the preparation, amendment and revision of the Distribution Code.
(7) The regulatory committee shall issue a reasoned opinion on the draft, which
shall contain any rejected proposals and observations of members, as well as the
reasons of rejection.
(8) The authorised distribution network operators shall be held liable for the activity
of the regulatory committee being performed in accordance with the rules of
procedure. The authorised distribution network operators shall jointly send the draft of
the Distribution Code, and the minutes of the meeting of the regulatory committee to
the Office within 7 days after the meeting, together with the statements of reasons.
(9) The convening of the regulatory committee may be initiated by any person
concerned through their representatives with the authorised distribution network
operators.
Vhr. Article 50/A (1) The purpose of the Regulated Electricity Market Code shall be
to ensure the non-discriminative operation of the regulated electricity market and it
shall cover at least the following:
(a) the scope of products marketed on the regulated electricity market,
(b) the scope of permitted transactions, the detailed rules of submitting tenders,
including the requirements of the content and format of tenders and withdrawal of
tenders, as well as the rules for the period during which the tenderer must maintain
the tender,
(c) the method of trade and the trading period,
(d) the rules of the introduction, withdrawal and modification of what is provided for
in points (a) to (c),
(e) the content and conditions of regulated electricity market membership, including
the detailed rules of establishing, suspending, restricting and terminating
membership,
(f) the content and conditions of trading rights, including the detailed rules of
establishing, suspending, restricting and terminating trading rights,
(g) the detailed rules of trading, transactions and financial accounting,
(h) the rules of suspending trade,
(i) the content, location, procedure, date and detailed rules of information, data
provision and publication liabilities between members and the authorised operator of
the regulated electricity market,
(j) the detailed rules of data management,
(k) general contractual terms and conditions, including the cases and legal
consequences of breaches of contract,
(l) the detailed rules of keeping contact on the regulated electricity market, and
(m) the most important requirements for the content and form of the register
necessary for fulfilling the information and data provision obligations of the authorised
operator of the regulated electricity market.
(2) The authorised operator of the regulated electricity market shall arrange for the
setting up of the regulatory committee of the regulated electricity market. The
regulatory committee of the regulated electricity market shall consist of the
representatives of the members of the regulated electricity market, and shall deliver
opinions and give advice in respect of the amendment of the provisions of the
Regulated Electricity Market Code.

(3) The authorised operator of the regulated electricity market shall publish the draft
of the Regulated Electricity Market Code sent to the Office for approval, and the
Regulated Electricity Market Code approved by the Office on its homepage.
(4) The authorised operator of the regulated electricity market may prepare the
Regulated Electricity Market Code and its own standard service agreement in a
single document, in which case it shall arrange for the appropriate layout thereof and
the clear separation of the individual subjects.
Standard Service Agreement
Vhr. Article 51 (1) Authorised operators shall publish the draft of their standard
service agreement on their homepage. The transmission system operator shall
inform the authorised operators concerned about the publication of the draft of its
standard service agreement.
(2) Authorised operators with the exception of the transmission system operator
shall hold a direct consultation with the representative organisations of energy users
on the draft of their standard service agreement.
(3) Authorised operators shall provide at least 20 days for making observations.
Received opinions and the result of the consultation shall be recorded. If the opinion
of the representative organisation or the authorised operator is not incorporated into
the standard service agreement and the conflict of interest between parties cannot be
resolved, or if the person making the observation requests so, the opinion of the
person making the observation shall be attached to the application for the approval of
the standard service agreement submitted to the Office.
(4) During the procedure for approval the Office shall decide on any remaining
disputes referred to in paragraph (3), and shall approve the standard service
agreement, shall make approval subject to certain conditions, or shall refuse
approval.
(5) Applications for exemption under Article 72(5) of the VET from preparing a
standard service agreement shall be accompanied by the contract template to be
applied by the authorised operator.
(6) The provisions of paragraph (5) shall not apply to sales in the balancing group
established for the accounting of electricity subject to purchase obligation and in the
affiliated balancing group.

Unilateral Amendment of Network Use Agreements


and Contracts for the Sales of Electricity
VET Article 73 (1) The standard terms and conditions fixed in the standard
service agreement may permit the unilateral amendment of network use
agreements and the contracts for the sales of electricity according to
paragraph (2).
(2) The transmission system operator, authorised distribution network
operators, providers of universal services and, as regards users eligible for
universal services, electricity traders shall be authorised to unilaterally amend
the network use agreements or contracts for the sales of electricity only in the
following cases subject to the prior consent of the Office:
(a) upon the occurrence of conditions stipulated in the network use
agreement and in contracts for the sales of electricity, or in the standard terms

and conditions, with the proviso that with the exceptions set out in Article
62(2), Article 141(7) and Article 143/A(2) to (3) of this Act, and under specific
other legislation such amendment may not result in any substantial
amendment of the contract terms and conditions to the detriment of users;
(b) if so justified by any amendment of the relevant legislation or by decision
of the Office.
(3) Substantial amendment shall mean, in particular, any modification
affecting the conditions for using the service, the duration of service or the
quality of service parameters, the right of cancellation, and the price of service
in the case of contracts for the sales of electricity.
(4) If the provider of universal services has the right in the cases specified in
the standard terms and conditions to modify the contract for the sales of
electricity by unilateral decision, the users affected must be notified as
specified in this Act at least 30 days before the changes are set to take place,
including information as to the users right to cancel the contract.
(5) In the case referred to in paragraph (4) users shall be entitled subject to
the derogation specified in paragraph (6) to cancel the contract in
accordance with Article 62(4) within 30 days following receipt of the
notification of the amendments.
(6) If the amendment contains provisions to the disadvantage of users, they
shall be entitled to cancel the contract for the sales of electricity within 45
calendar days from the date of notice without any further consequences in
accordance with Article 62(4).
(7) The notification deadlines referred to in paragraph (4) need not be applied
in connection with any amendment of the standard terms and conditions where
the amendment of the standard terms and conditions is necessitated solely by
the introduction of a new service, and the amendment does not concern the
standard terms and conditions pertaining to services already provided, or if the
only result of the amendment is the reduction of a service charge.
(8) The provider of universal services shall lay down the detailed conditions
for the amendment of the standard service agreement in accordance with
specific other legislation.
(9) The obligations set forth in paragraphs (4) to (8) shall apply to the
electricity trader as well vis--vis users eligible for universal service.
Chapter XI
GENERAL CONDITIONS RELATING TO THE PERFORMANCE OF
ELECTRICITY ACTIVITIES
General Rules on Authorisation Procedures
VET Article 74 (1) The activities specified below may be performed only in
compliance with and in possession of the appropriate authorisation issued by
the Office:
(a) the establishment of a micro power plant with a nominal capacity of 0.5
MW or more, generation of electricity, and the termination of electricity
generation by the micro power plant,
(b) the establishment of a power plant with a nominal capacity of 50 MW or
more, generation of electricity, as well as the expansion of said power plant or

the increase or decrease of its nominal capacity to an extent set out in specific
other legislation, and the suspension or termination of electricity generation of
the power plant,
(c) transmission system control,
(d) distribution of electricity,
(e) trade in electricity,
(f) provision of universal service,
(g) the operation of the regulated electricity market,
(h) the establishment, expansion and decommissioning of private lines
referred to in Article 39(1)(b) and (c), except for the establishment, expansion
and decommissioning of private lines located within a single building,
(i) the installation and decommissioning of direct lines, exclusive of the direct
lines supplying electricity to purchasers on the premises of the power plant
(2)
(3) If a permit for an indefinite term for an activity subject to authorisation
under the Act on District Heating (hereinafter referred to as: Tszt.) and a permit
for a fixed term under this Act is issued as a single permit, the procedure for
the extension of the permit under this Act shall not affect the effect of parts of
the permit concerning the activity under the Tszt.
VET Article 75 (1) The Office shall issue authorisation if the application
therefor is in compliance with the requirements set forth by law.
(2)
(3) The Office shall refuse to issue an authorisation
(a) in the event of non-compliance with statutory provisions and in the
absence of any of the statutory requirements, or if the applicant does not have
the authorisations specified in specific other legislation,
(b) if the content of the application fails to comply with legal and energy
policy requirements regarding new generation capacity or the establishment of
power plants, with particular regard to the criteria set out in Article 78, and to
the restrictions concerning primary energy sources under the legislation
referred to in Article 79,
(c) if the applicant fails to meet the financial, economic and technical criteria
and does not have the facilities and qualified staff described in specific other
legislation as required for the continuous and long-term execution of the
activity for which the authorisation is requested, or does not comply with
energy efficiency requirements,
(d) if the applicant is subject to bankruptcy or liquidation proceedings,
(e) if any of the licences under Article 74(1) of the applicant or of its legal
predecessor have been revoked ex officio within a ten-year period prior to the
submission of the application,
(f) if any information provided by the applicant is false or misleading.
(4) Extension of operating licences shall be subject to the rules pertaining to
the granting of the licence in question. The validity period of combined micro
power plant authorisations and operating licences for electricity generation
may be extended no sooner than two years five years in the case of nuclear
power plants and coal-fired power plants before the expiry of the
authorisation.
General Rules on Authorisation Procedures

Vhr. Article 52 (1) The conditions of pursuing the activities subject to authorisation
referred to in Article 74 of the VET shall be laid down by the Office in the
authorisation, subject to the provisions of Article 84(1); if such conditions are not met,
the Office shall apply the sanctions referred to in Article 96 of the VET.
(2)
(3) The authorisation referred to in paragraph (1), other resolutions of the Office
and other eligibilities granted by such resolutions shall not be transferred either fully
or partially.
Vhr. Article 53 (1) Applications for authorisation or approval shall be submitted to
the Office in writing with the content specified in this Decree and in the form specified
by the Office and published on its homepage in an electronically downloadable
format, and also in an electronically editable format.
(2) In his application the applicant for authorisation shall support by the documents
and data specified in the Annex to this Decree pertaining to the given application that
he is capable of performing the activity subject to authorisation.
(3)
(4)
Vhr. Article 54 (1) In addition to the documents specified in the Annexes to this
Decree pertaining to the individual types of authorisations, the following documents
shall be attached to applications for the authorisations referred to in Article 74(1) of
the VET, while taking the provisions of paragraph (3) into account:
(a) the memorandum and articles of association, or the statutes of the company
applying for the authorisation (hereinafter referred to as: memorandum of
association),
(b) a certificate of incorporation which shall not be older than 30 days; if there is any
change underway, the document being the basis of the change and an application for
the registration of changes affixed with a RECEIVED stamp by the company court, or
an electronic certificate referred to in Article 36(1) of Act V of 2006 on Public
Company Information, Company Registration and Winding-up Proceedings, and
(c) a document attesting the payment of the administrative service fee specified in
specific other legislation to the Office.
(2) The presentation of the availability of a staff of appropriate number and
qualification, and plans for ensuring such availability shall be attached to applications
for the authorisations referred to in Article 74(1)(b) to (d) and (f) to (i) of the VET
(except for the authorisation for the termination of electricity generation), while taking
the provisions of paragraph (1) into account.
(3) If the applicant fails to attach a certification of incorporation no older than 30
days, the document being the basis of the change, the application for the registration
of changes affixed with a RECEIVED stamp by the company court, and the electronic
certificate referred to in the Act on Public Company Information, Company
Registration and Winding-up Proceedings, the Office shall in order to obtain the
data necessary for the assessment of the case contact the body keeping the
company register.
Vhr. Article 55 Activities subject to authorisation as referred to in Article 74(1)(a)
and (h) to (i) of the VET shall only be performed by companies having a registered
seat in Hungary as stipulated in Article 685(c) of the Ptk.; activities subject to
authorisation as referred to in Article 74(1)(b) of the VET shall only be performed by
private limited-liability companies or companies limited by shares having a registered
seat in Hungary, if they meet the criteria laid down in the VET, this Decree and other
relevant legislation.

Vhr. Article 56 (1) In respect of their activities subject to authorisation under the
VET the authorised distribution network operator, the provider of universal services,
the transmission system manager and in the case of the total ownership unbundling
of the transmission system operator the transmission system operator must
continuously fulfil at least the following obligations in respect of their employees in
accordance with the authorisation:
(a) for the transmission system operator and the transmission system manager:
(aa) preparation, control and evaluation of the operation of the electricity system,
(ab) preparation of the balance sheet on system-level,
(ac) coordination of electricity sales,
(ad) planning of ancillary services, and the settlement of accounts relating to the
use of such services,
(ae) contribution to the implementation of transactions concluded ion the regulated
electricity market, and
(af) ordering any measures necessary for maintaining the interoperability of the
electricity system;
(b) for authorised distribution network operators
(ba) controlling the operation of high, medium and low-voltage public utility
systems,
(bb) controlling the operation of power plants which are not covered either directly
or indirectly by the operation control of the transmission system operator through a
centralised management of power plants,
(bc) performing tasks relating to capacity regulation and
(bd) exercising the rights of decision-making and control and fulfilling obligations
relating to the service activity of the authorised operator in the field of operation,
operation control and customer service activities; and
(c) for the provider of universal services, exercising the rights of decision-making
and control and fulfilling obligations relating to the provision of universal services.
(2) During the performance its activity subject to authorisation under the VET, the
transmission system operator referred to in Articles 102 to 102/E of the VET shall, in
addition to meeting the obligations laid down in paragraph (1), continuously comply
with the provisions of Article 102/B(3)(c) of the VET in respect of its own employees.
Vhr. Article 57 The procedure for the extension of the period of validity of
authorisations issued for a fixed period shall be governed by the rules of
authorisation procedures.
VET Article 76 (1) An operating licence shall provide exclusive rights for and
specify the obligations
(a) of the transmission system operator concerning the control of
transmission network operations,
(b) of authorised distribution network operators concerning the distribution
of electricity in the community, district of a community, or service location
specified in the authorisation,
(c) of the authorised operator of the regulated electricity market concerning
the operation of the regulated electricity market.
(2) An authorisation for providing universal services shall constitute an
obligation to provide universal services in the service area specified in the
authorisation.
VET Article 77 (1) The detailed regulations for authorisation proceedings shall
be decreed by the Government.

(2) The authorisations regulated by this Act shall not affect the authorisations
and authorisation procedures specified in specific other legislation.
VET Article 78 New generation capacity shall be authorised in a transparent
manner, under the principle of equal treatment, according to the following
criteria:
(a) the safety of the electricity system and associated equipment;
(b) protection of public health and safety;
(c) protection of the environment and nature;
(d) land use and siting;
(e) improvement of energy efficiency;
(f) priority of renewable energy sources;
(g) use of advanced technical capabilities;
(h) the security of electricity supply;
(i) protection of users.
VET Article 79 In the event of any threat to the balance in Hungarys
electricity supply system or to the security of supplies of individual energy
sources, and with a view to ensuring the implementation of energy policy,
including the enforcement of the targeted energy mix for primary energy
sources taking into consideration in particular the medium-term demandsupply analysis for the entire system as submitted by the Office under the Act
on Natural Gas (hereinafter referred to as: Get.) the Minister may adopt
legislation, in view of the Offices recommendation, to restrict the use of
certain specific primary energy sources in authorisations granted for new
generation capacity, including the extent and duration of such restriction.
Combined Micro Power Plant Authorisation
VET Article 80 (1) In the cases specified in Article 74(1)(a) simplified
authorisation proceedings shall be conducted in connection with micro power
plants with a nominal capacity of 0.5 MW or more.
(2) The Office shall issue a single authorisation for the establishment of a
micro power plant and for its electricity production (simplified authorisation
proceedings).
(3) The construction of a micro power plant with a nominal capacity of 0.5 MW
or more in accordance with Article 39 of Act LXXVIII of 1997 on the Formation
and Protection of the Built Environment (hereinafter referred to as:
construction) may commence upon receipt of the final combined micro power
plant authorisation. The deadline of construction shall be defined by the Office
in the combined micro power plant authorisation based on the information
supplied by the applicant.
(4) Within at least two months prior to the scheduled commissioning of a
micro power plant with a nominal capacity of 0.5 MW or more, the authorised
operator shall notify the Office and the transmission system operator
accordingly.
(5) A combined micro power plant authorisation shall be granted for a fixed
period determined by the Office at request, and may be renewed.
(6) The Office may extend the deadline of construction referred to in
paragraph (3) at the request of the holder of the authorisation. The deadline of
construction may be extended by a total of maximum three additional years
from the original deadline of construction.

(7) If the holder of the authorisation delays in the commencement of


construction for reasons within his control, and consequently the original or
the extended deadline of construction cannot be maintained, the Office shall
withdraw the combined micro power plant authorisation. If authorisation is
withdrawn under this paragraph, the holder of the authorisation may not
demand compensation from the Office.
(8) If the client also intends to engage in an activity falling within the
competence of the Office and subject to authorisation under the Tszt., he must
apply for the authorisations required by the Tszt. at the same time as
submitting his application for a combined micro power plant authorisation.
(9) In the case referred to in paragraph (8) the Office shall issue the combined
micro power plant authorisation and the authorisations under the Tszt. in a
single authorisation.
Preliminary Authorisation for Power Plants Significantly Influencing the Operation of
the Electricity System
VET Article 80/A (1) If the nominal capacity of an independent electricity
generating unit of a power plant (hereinafter referred to as: generating unit)
(a) reaches or exceeds 500 MW at installation, or
(b) reaches or exceeds 500 MW following expansion or nominal capacity
improvement,
an application for a preliminary authorisation shall be submitted to the Office
prior to the installation, or prior to the expansion or nominal capacity
improvement of the generating unit, respectively.
(2) Authorisation proceedings for
(a) the establishment of a new nuclear facility,
(b) installation, expansion or nominal capacity improvement under this Act,
and
(c) construction
relating to the installation, expansion or nominal capacity improvement of
generating units with a nominal generating capacity of 500 MW or more may be
initiated after the issuance of the preliminary authorisation, and the procedure
for the installation, expansion or nominal capacity improvement of power
plants under this Act may be initiated on the basis of the preliminary
authorisation.
(3) In the case of nuclear power plants applications may be submitted to the
Office after the publication of Parliaments preliminary approval in principle
as effective on the date of the submission of the application referred to in
Article 7(2) of Act CXVI of 1996 on Atomic Energy.
(4) The granting of the preliminary authorisation shall not grant exemption
from conducting the authorisation procedures under Article 74(1)(b).
(5) Applications for a preliminary authorisation shall be accompanied by a
study presenting the expected impact of the operation of the generating unit
with a nominal generating capacity of 500 MW or more, prepared in accordance
with the requirements on form and content set forth in the Vhr. The impact
study shall cover taking into account the preliminary authorisations and
construction permits issued pursuant to this Act to other applicants up to the
date of the submission of the application the impacts on the safe operation of
the electricity system, the security of supply, the improvement needs of the

transmission and distribution network, ancillary services, losses in the


transmission network, and the interoperability of electricity systems.
(6) In the preliminary authorisation the Office shall lay down those technical
requirements which must be met by the applicant in order to ensure the
uninterrupted and safe operation and balance of the electricity system, and
those conditions which must be met at the time of issuance of authorisations
under Article 74(1)(b) in order to ensure safe operation and the security of
supply. Based on assessments carried out or commissioned by the Office, the
Office may derogate from the findings of the impact study during the issuance
of the preliminary authorisation.
(7) The preliminary authorisation shall be valid for 3 years and may be
extended for periods of 3 years. The rules pertaining to the granting of the
preliminary authorisation shall apply to the extension thereof, with the
stipulation that the modification of the impact study referred to in paragraph (5)
shall be necessary only if the investments which are included in the network
development plan and are scheduled to be implemented in the following 3
years are modified in respect of the data being the basis of the preliminary
authorisation as compared to the network development plan in force at the
time of the issuance of the authorisation.
(8) A preliminary authorisation shall not be necessary if the generating unit
with a nominal capacity of 500 MW or more is established as a result of a call
for tender referred to in Article 8(1).
Combined Micro Power Plant Authorisation
Vhr. Article 62 (1) Applications for authorisation shall be accompanied by the
documents referred to in Annex 4.
(2) The combined micro power plant authorisation shall be issued by the Office only
if the micro power plant meets the minimum energy efficiency requirements laid down
in specific other legislation.
Preliminary authorisation for power plants significantly influencing the operation of
the electricity system
Vhr. Article 62/A Applications for a preliminary authorisation shall be accompanied
by the documents set forth in Annex 4/A.
Authorisation of the Establishment of a Power Plant with a Nominal Capacity of 50
MW or More
VET Article 81 (1) The construction of a power plant with a nominal capacity
of 50 MW or more shall be subject to authorisation by the Office, and
construction may commence if in possession of such authorisation only.
(2) As a precondition of the authorisation of the construction of a power
plant, the provisions relating to the selection of primary energy sources shall
be laid down in specific other legislation.
(3) An authorisation for the construction of a power plant shall remain
effective for a fixed term. Upon request, the Office may extend the
authorisation once, for a term identical to that for which the authorisation for
construction was granted, not to exceed three additional years.

(4) Upon request, the Office may amend the authorisation for the construction
of a power plant.
(5) If the client also intends to engage in an activity falling within the
competence of the Office and subject to authorisation under the Tszt., he must
apply for an authorisation for the construction of a district heating generator as
required by the Tszt. at the same time as submitting his application for an
authorisation for construction.
(6) In the case referred to in paragraph (5) the Office shall issue the
authorisation for construction and the authorisation for the construction of a
district heating generator under the Tszt. in a single authorisation.
Authorisation of the Establishment of a Power Plant with a Nominal Capacity of 50
MW or More
Vhr. Article 63 (1) Applications for authorisation shall be accompanied by the
documents referred to in Annex 5.
(2) In the authorisation for construction the Office shall specify the primary energy
source of the power plant in accordance with Annex 7.
(3) The Office shall grant the operating licence for the construction of a power plant
with a nominal capacity of 50 MW or more only if the power plant complies with the
minimum energy efficiency requirements laid down in specific other legislation.
Authorisations for the Expansion or Nominal Capacity Improvement of, and for the
Suspension or Termination of the Electricity Generation of a Power Plant
VET Article 82 (1) The regulations pertaining to the expansion of a power
plant in a manner or to the extent described in specific other legislation, to the
nominal capacity improvement and change of the primary energy source of a
power plant and to the suspension or termination of electricity generation shall
be subject to the provisions governing the construction of power plants, with
the derogations set out in specific other legislation.
(2) If the nominal generating capacity of a micro power plant reaches or
exceeds 50 MW as a result of expansion or nominal capacity improvement, the
operator shall be obliged to request the Offices authorisation for the
expansion, improvement of nominal generating capacity or operation.
(3) If the client applies for an authorisation for the expansion of a power plant
in a manner or to the extent specified in specific other legislation, for the
nominal capacity improvement or change of the primary energy source of a
power plant or for the suspension or termination of electricity generation, and
the amendment of the authorisations issued under the Tszt. and falling within
the competence of the Office is justified for the same reasons, the client shall
apply for such amendment to the Office at the same time.
(4) In the case referred to in paragraph (3) the Office shall issue the amended
authorisation under this Act and the amended authorisations under the Tszt. in
a single authorisation.
Authorisation for the Expansion of Power Plants
Vhr. Article 64 (1) Increasing the nominal generating capacity specified in the
operating licence by at least 10% through the installation of new main equipment
shall be considered as the expansion of a power plant. Increasing the nominal

generating capacity of a micro power plant through the installation of new equipment
shall be considered as the expansion of the power plant if the nominal generating
capacity of the micro power plant reaches or exceeds 50 MW after the expansion.
(2) The power plant to be expanded must meet the minimum energy efficiency
requirements stipulated in specific other legislation.
(3) Applications for an authorisation for the expansion of a power plant shall be
accompanied by the documents and data specified in Annex 5 to this Decree.
(4) Following the expansion the authorised operator shall apply for the modification
of its operating licence, or, in the case micro power plants, for the issuance of an
operating licence for the generation of electricity within 30 days after the date of the
final report on the test run.
Authorisation for Increasing the Nominal Generating Capacity of Power Plants
Vhr. Article 65 (1) Increasing the nominal generating capacity specified in the
operating licence or the nominal generating capacity of a micro power plant by
modifications or improvements shall be regarded as the increase of the nominal
generating capacity of the power plant, if the volume of the increase in the nominal
generating capacity of any existing equipment (power plant unit or turbo generator
set) or the total nominal generating capacity of all such equipment exceeds 10% of
the nominal generating capacity specified in the operating licence, or if the nominal
generating capacity of the micro power plant reaches or exceeds 50 MW with the
increase.
(2) Applications for an authorisation for increasing the nominal generating capacity
of a power plant shall be accompanied by the documents and data specified in
Annex 5.
(3) Following the increase of nominal generating capacity the authorised operator
shall apply for the modification of its operating licence, or, in the case of micro power
plants, for the issuance of an operating licence for the generation of electricity within
30 days after the date of the final report on the test run.
Authorisation for Decreasing the Nominal Generating Capacity of Power Plants with
a Nominal Capacity of 50 MW or More
Vhr. Article 66 (1) Decreasing the nominal generating capacity specified in the
operating licence by more than 10% or 10 MW (the higher value shall be taken into
account in every case) through one or more instances of decrease shall be
considered as the decrease of the nominal generating capacity of a power plant, if
the duration of the decrease exceeds 1 year.
(2) Applications for an authorisation for decreasing the nominal generating capacity
of a power plant shall be accompanied by the documents and data specified in
Annex 5.
(3) The non-scheduled decrease of the nominal generating capacity specified in the
operating licence by more than 10% or 10 MW (the higher value shall be taken into
account in every case) shall be considered as the decrease of the nominal
generating capacity of a power plant, if the duration of the decrease exceeds 1 year.
(4) Following the decrease of nominal generating capacity the authorised operator
shall apply for the modification of its operating licence, or, in the case of micro power
plants, for the issuance of a combined micro power plant authorisation within 30 days
after the date of the final report on the test run.

Authorisation for the Operation of a Power Plant with a Capacity of 50 MW or More


VET Article 83 (1) An authorised producer shall be entitled to generate and
sell electricity based on an operating licence.
(2) An operating licence required for electricity generation shall be issued for
a fixed period determined by the Office at request, and may be extended.
(3) If the client also intends to engage in an activity falling within the
competence of the Office and subject to authorisation under the Tszt., he must
apply for an authorisation for the operation of a district heating generator as
required by the Tszt. at the same time as submitting his application for an
operating licence.
(4) In the case referred to in paragraph (3) the Office shall issue the operating
licence and the authorisation for the operation of a district heating generator
under the Tszt. in a single authorisation.
Operating Licence for the Electricity generation of a Power Plant with a Nominal
Capacity of 50 MW or More
Vhr. Article 67 (1) The Office shall issue an operating licence for the generation of
electricity for power plants with a nominal generating capacity of 50 MW or more
(hereinafter referred to as: operating licence for the generation of electricity) on the
basis of the authorisation for construction, or, in the case of micro power plants, the
authorisation for increase of capacity or expansion, if
(a) the power plant meets the technical specifications laid down in the authorisation
for construction (capacity increase, expansion) following the successful
commissioning procedure,
(b) the applicant is in possession of the basic equipment necessary for the activity
and
(c) complies with the relevant criteria laid down in legislation.
(2) Applications for operating licences for the generation of electricity shall be
accompanied by the documents and data specified in Annex 6 to this Decree.
(3) The person applying for the extension of the validity period of the operating
licence shall attach the documents and data specified in Annex 6 to this Decree to
the application for the licence.
(4) In the operating licence for the generation of electricity the Office shall specify
the scope of basic equipment of the authorised operator which is necessary for
performing the activity covered by the licence.
(5)
Authorisation for the Suspension of the Electricity Generation of Power Plants with
a Nominal Capacity of 50 MW or More and the Conditions of Resuming the
Generation of Electricity
Vhr. Article 68 At the written request of the authorised operator the Office may
authorise the suspension of the electricity generation activity of the authorised
operator for a fixed duration, provided that this does not endanger the operation of
the electricity system or the security of supply. The authorised operator shall submit
its application to the Office no later than 90 days before the initial date of the planned
suspension.
Vhr. Article 69 (1) Applications for the approval of suspension shall be
accompanied by the documents specified in Annex 8 to this Decree.

(2) The duration of the suspension shall not be shorter than 30 days, and shall not
exceed 3 years even in the case of extension.
Vhr. Article 70 If the authorised operator intends to resume the suspended activity,
it shall request the approval of the Office in this respect, and shall attach the
documents specified in Annex 9 to this Decree to its application. Having regard to the
duration of the suspension, the Office may choose not to require the submission of
certain documents.
Authorisation for the Termination of Electricity Generation
Vhr. Article 71 Based on the authorisation for the termination of electricity
generation the authorised producer must terminate the generation of electricity under
the conditions laid down by the Office in the authorisation. The Office may issue an
authorisation for the termination of electricity generation only if it does not endanger
the operation of the electricity system or the security of supply.
Vhr. Article 72 (1) Authorised producers shall apply for an authorisation for the
termination of electricity generation in the following cases:
(a) there are 180 days left until the expiration of the authorisation for the generation
for electricity, and the extension of the authorisation has not been applied for,
(b) the authorised producer is unable to continue the authorised activity in
compliance with the authorisation for the generation of electricity,
(c) the authorised producer intends to terminate electricity generation within the
validity period of the authorisation,
(d) the duration of the suspension of electricity generation approved by the Office
has expired, and the authorised operator did not apply for the approval of the
resumption of the electricity generation activity, or the suspension has reached the
maximum permissible duration.
(2) Applications for an authorisation for the termination of the generation of
electricity shall be accompanied by the documents specified in Annex 10 to this
Decree.
(3) If the authorised producer terminates the generation of electricity without asking
the approval of the Office, the Office shall apply the sanctions referred to in Article 96
of the VET.
Common Rules of Power Plant Authorisation
Vhr. Article 58 In respect of the authorisation of power plants except for wind
farms the generating capacity limit of 0.5 MW or 50 MW shall be applied when
determining the nominal generating capacity of a power plant by considering the sum
of the generating capacity of all power plant units capable of generating electricity
which are owned and operated by the applicant at a single establishment. For the
purposes of this paragraph establishment shall mean an establishment as defined in
point 33 of Article 4 of Act LXXXI of 1996 on Corporate Tax and Dividend Tax. For
authorisation purposes a wind farm shall be considered as one power plant.
Vhr. Article 59 (1) During the authorisation of power plants the Office shall enforce
the following energy-related criteria:
(a) the objective of ensuring the establishment of power plants the efficiency of
which corresponds to the best available technology, in order to reduce primary
energy source consumption,
(b) the promotion of decentralised electricity generation,

(c) to ensure that any termination of electricity generation is scheduled in such a


way as to not endanger the operation of the competitive electricity market or the
electricity supply of certain areas,
(d) the enforcement of the provisions of the ministerial decree issued under Article
79 of the VET,
(e) the energy policy objectives relating to the energy mix for primary energy
sources,
(f) the target values specified in Hungarys Renewable Energy Utilisation Action
Plan.
(2) An operating licence for the generation of electricity for a new gas-fired power
plant with a nominal generating capacity of 50 MW or more, or an authorisation for
expansion for a power plant with a nominal generating capacity of 50 MW or more
may be issued only if the natural gas supply of the power plant can be replaced by an
alternative energy source [fuel oil, gas turbine oil, LPG, liquid (natural) gas, etc] to the
extent and by the means stipulated in the ministerial decree on the minimum amount
of the energy source reserves of power plants with a nominal capacity of 50 MW or
more and the rules of keeping reserves issued under point 4 of Article 170(2) of the
VET.
Vhr. Article 60 During the proceedings relating to the issuance of combined micropower plant authorisations, or authorisations for the construction of power plants with
a nominal generating capacity of 50 MW or more, and during the public
administrative proceedings of authorised producers the Office shall be entitled to
request that the transmission system operator deliver its opinion on matters relating
to system control within 30 days.
Vhr. Article 61(1) The Office shall issue its authorisations for nuclear power plants
only if the authorisations stipulated in Act CXVI of 1996 on Atomic Energy have been
issued.
(2)
Operating Licences for Electricity Distribution

VET Article 84 (1) Authorised distribution network operators shall be


business associations operating in the form of companies limited by shares or
private limited-liability companies.
(2) Operating licences issued for electricity distribution shall be valid for a
period of twenty-five years, and may be extended.
Operating Licences for Electricity Distribution
Vhr. Article 73 (1) The territory of operation of an authorised distribution network
operator shall be specified by the Office in the operating licence for electricity
distribution (hereinafter referred to as: distribution licence) in such a way as to ensure
distribution network coverage in the entire territory of the country.
(2) The Office shall determine the territory of operation with a view to ensuring the
security of supply, the quality of service and metering possibilities necessary for the
settlement of accounts. When determining a territory of operation the Office may
request the opinion of the transmission system operator.
(3) The applicant must be in possession of the following:
(a) a distribution network suitable for supplying electricity to users throughout the
territory of operation at the safety and quality level set forth in legislation and

standards, including the necessary lines, switching and transforming stations, and the
service equipment, facilities and qualified staff necessary for the operation of the
network and for serving users connected to the network;
(b) input points with the capacity necessary to satisfy the electricity demand of
users to be supplied from the distribution network, and contracts on network
capacities available at input points, and other relevant contracts.
(4) Prior to the establishment, modification or decommissioning of high-voltage
distribution lines the authorised operator shall apply to the Office for the modification
of its operating licence.
(5) Applications for a distribution licence shall be accompanied by the documents
under Annex 11 to this Decree.
Authorisation of Private Lines
VET Article 85 (1)
(2)
(3)
(4) The Office may impose the sanctions referred to in Article 96 upon the
authorised operator of the private line for any breach of the obligations set out
in this Act and in legislation issued for the implementation thereof, or in the
authorisation for the establishment of the private line in a proceeding launched
upon request or ex officio, or may declare the line to be a public utility line in
accordance with point 9 of Article 159(1) and the provisions of specific other
legislation.
Declaring Lines to be Public
Vhr. Article 40 (1) The Office shall examine the public nature of every high-voltage
line.
(2) Procedures for the classification of lines as transmission or distribution lines or
public lines, or for the reclassification of such lines shall be launched at the request of
the authorised network operator or, for the purpose of ensuring the safe operation of
the electricity system, ex officio.
(3) Procedures for the classification of private lines subject to authorisation, or
production lines referred to in Article 74(3) of the VET as transmission or distribution
lines or public lines, or for the reclassification of such lines shall be launched at the
request of the owner or operator of the line, or, in the cases referred to in Article
85(4), Article 86(5) and Article 66(9) of the VET, ex officio.
Vhr. Article 41 (1) At the request of the Office, the transmission system operator
and the authorised distribution network operators shall deliver their opinion to the
Office about applications for the classification of medium and low-voltage lines as
public lines, more specifically as distribution lines, and for the reclassification of such
lines within 30 days after the receipt of the application.
(2) The transmission system operator shall make a proposal to the Office in
connection with the public utility system in respect of the classification of high-voltage
lines as public lines, more specifically as transmission or distribution lines, and of the
reclassification of such lines.
Vhr. Article 42 During the procedure conducted by the Office in the competence
referred to in Article 37(1) of the VET the transmission system operator must deliver
its opinion to the Office in connection with the public utility system in order to facilitate
the assessment of the application for exemption for the interconnecting line.

Vhr. Article 43 (1) The authorised network operator, and the operator of the direct
line, the production line or the private line subject to authorisation shall attach the
following to the application for classification or reclassification:
(a) the designation of the line or network equipment as indicated in the Operating or
Distribution Code,
(b) indication of the nominal voltage of the line or network equipment,
(c) description of the role of the line or equipment in the electricity system,
(d) description of the number of connecting users and purchasers and the volume
of their consumption,
(e) the proposal of the transmission system operator in the case of high-voltage
lines.
(2) In addition to the data specified in paragraph (1), operators of direct, production
or private lines shall attach the following to their applications for the reclassification of
their lines as public, more specifically as transmission or distribution lines:
(a) description of the technical condition of the line,
(b) the statement of the authorised network operator having an operating licence
covering the given territory on the estimated costs of and the time needed for the
establishment of the public utility system in order to supply purchasers or users who
are supplied or intended to be supplied through the line,
(c) the statement of the authorised network operator having an operating licence
covering the given territory on the foreseeable costs of and time needed for the
operation by the authorised network operator in accordance with legislation should
the line be classified as public, and on the developments of the line deemed
necessary by the authorised network operator, and the estimated costs of such
developments,
(d) the statement of the electricity purchaser supplied through the direct, production
or private line on the fact that he is in possession of a valid contract or precontractual agreement for the purchase of electricity after the line is declared to be
public,
(e) the contract or pre-contractual agreement of the operator, or if the operator
and the owner are not the same person the owner of the direct, production or
private line concluded with the authorised network operator having an operating
licence covering the given territory, in which the parties settle the property and cable
rights status of, and the rules of the operation of the line classified as public upon
request, with effect from the date on which the line is declared to be public.
(3) If a proceeding is launched ex officio, the Office shall obtain the statement of the
operator of the direct, production or private line, and of the authorised network
operator having an operating licence covering the given territory concerning the
details under paragraphs (1) and (2).
(4) The authorised network operator having an operating licence covering the given
territory shall cooperate with the operator of the direct, production or private line
during the procedure for the classification of a component as public, and shall make
the statements necessary for the procedure of the Office under paragraph (3)
available within the deadline set by the Office. If the client hinders the procedure, the
Office may apply the sanctions referred to in points (a) to (c) of Article 96(1) of the
VET.
(5) During its proceedings launched ex officio for classifying a direct, production, or
private line as public, the Office shall obtain the statement of the authorised network
operator having an operating licence covering the given territory, and, if they do not

otherwise participate in the proceeding as clients, of the owner or operator of the


direct or private line on the classification of the line as public.
(6) In order to ensure the conclusion of the contract referred to in point (e) of
paragraph (2) the Office shall endeavour to mediate an agreement between the
authorised network operator and the operator of the direct, production or private line.
If the parties do not manage to reach an agreement, the Office shall proceed in
accordance with paragraphs (3) and (5) and shall issue a resolution on the
proportionate distribution fee for the line declared to be public, and on the settlement
of operational costs between the authorised network operator and the owner or
operator of the line.
Vhr. Article 44 (1) The Office shall decide on the classification of a line as a
transmission or distribution line, or as public, and on the reclassification of such lines
in view of the interoperability of the electricity system, the security of supply, the
efficient and uninterrupted supply of electricity, the number of users or purchasers
connecting to the given line, and the volume of their consumption, the network
development plan of the electricity system, and other circumstances which are
relevant in the given case.
(2) The Office shall not refuse to classify lines as public, or to reclassify such lines,
if they are included in the network development plan of the electricity system
approved by the Office.
(3) At the same time as classifying a high-voltage direct, production or private line
as public, the Office shall modify the operating licence of the authorised network
operator having an operating licence covering the given territory ex officio. At the
same time the Office shall withdraw the operating licence of the operator of the
private line subject to authorisation.
(4) In the event that a direct or production line, or a private line subject to
authorisation is classified as public, the authorised network operator shall conclude a
network connection and network use agreement with the purchaser supplied through
the direct line or production line or the user supplied through the private line subject
to authorisation if they so request. If the existing network connection does not require
any modification in terms of technical conditions and the volume of available
capacity, the electricity purchaser supplied through the direct or production line, and
the user supplied through the private line subject to authorisation shall have the right
of connection obtained as an electricity purchaser supplied through the direct or
production line, or as a user supplied through the private line subject to authorisation
free of charge and without any additional reimbursement liability.
(5) If the direct or production line or private line subject to authorisation is refused to
be classified as public, the Office may require the authorised distribution network
operator having an operating licence covering the given territory to establish a public
utility system until the deadline set by the Office in order to supply electricity to
purchasers or users supplied through the direct or production line, or through the
private line subject to authorisation.
(6) The public utility system to be set up pursuant to the resolution of the Office,
and connection to that system shall be established on the basis of the claims
submitted by users, and under the conditions laid down in relevant legislation.
(7) Until the connection to the public utility system is established, the operator of the
direct or production line, or the private line subject to authorisation shall provide
access to the direct or production line, or the private line subject to authorisation
under the same conditions. The operator of the direct or production line, and the
private line subject to authorisation must operate and maintain the line in accordance

with the provisions of the authorisation, the VET, this Decree, and other relevant
legislation; otherwise the Office shall be entitled to proceed against it in accordance
with Article 96(1) of the VET.
Vhr. Article 45 A line which is declared by the Office to be public may be
reclassified only in case of a change in the details under points (a) to (c) and (e) of
Article 43(1) or in nature of the line as a transmission or distribution line.
Authorisation of Private Lines
Vhr. Article 74 (1) The application for the authorisation referred to in Article
74(1)(h) of the VET may be submitted by the user.
(2) Applications for authorisation shall be accompanied by the documents referred
to in Annex 13.
Vhr. Article 75 In respect of the authorisation referred to in Article 74(1)(h) of the
VET any increase of the capacity available at the connection point of the private line
and the public utility system shall be considered as expansion.
Vhr. Article 76 (1) An authorisation for the decommissioning of a private line
established before 1 October 2011, as referred to in Article 39(1)(b) to (c) of the VET,
may be issued only if
(a) no purchaser or user is connected to the private line,
(b) any purchaser or user connecting to the private line can be directly supplied
through the public utility system following the decommissioning, or
(c) the service location or the private line has been transferred, and the new user
has been granted the authorisation referred to in Article 74(1)(h) of the VET.
(2) If the conditions laid down in paragraph (1) are not met in the case of an
application for the decommissioning of a private line, the Office may proceed against
the authorised operator of the private line in accordance with Article 39/E of the VET.
Authorisation of Direct Lines
VET Article 86 (1)
(2) The Office in its proceedings concerning the construction of direct lines
shall be liable to obtain the statement of the authorised network operator on
whether a purchaser is connected to the public utility system directly, and, in
the case of connection to the public utility system, it shall also obtain the
agreement referred to in Article 38(3). If a direct line has already been
authorised, the purchaser must notify the Office about the connection to the
public utility system, and must forthwith submit the agreement referred to in
Article 38(3) to the Office.
(3) The Office in its proceedings concerning the decommissioning of a direct
line shall be liable to obtain the statement of the transmission system operator
or the authorised distribution network operator empowered to provide
connection containing the financial and technical conditions for the supply of
purchasers from the public utility system.
(4) Plans for the construction or decommissioning of a direct line must be
notified to the transmission system operator and to the authorised distribution
network operator eligible for providing connection by the means prescribed in
the Electricity Supply Codes.
(5) The Office may declare a direct line to be a public line by applying the
provisions of point 9 of Article 159(1) and the decree issued for the
implementation of this Act as appropriate,

(a) if the agreement concluded with the purchaser supplied through the direct
line is terminated and a new agreement is not concluded, and electricity supply
to the purchaser in question cannot be ensured otherwise,
(b) if the authorised operator of the direct line notifies the Office regarding the
decommissioning of the direct line, and electricity supply to any purchaser
previously supplied through the direct line cannot be ensured otherwise.
(c)
(6) Further rules of the establishment and operation of direct lines shall be
decreed by the Government.
Declaring Lines to be Public
Vhr. Article 40 (1) The Office shall examine the public utility nature of every highvoltage line.
(2) Procedures for the classification of lines as transmission or distribution lines or
public lines, or for the reclassification of such lines shall be launched at the request of
the authorised network operator or, for the purpose of ensuring the safe operation of
the electricity system, ex officio.
(3) Procedures for the classification of private lines subject to authorisation, or
production lines referred to in Article 74(3) of the VET as transmission or distribution
lines or public lines, or for the reclassification of such lines shall be launched at the
request of the owner or operator of the line, or, in the cases referred to in Article
85(4), Article 86(5) and Article 66(9) of the VET, ex officio.
Vhr. Article 41 (1) At the request of the Office, the transmission system operator
and the authorised distribution network operators shall deliver their opinion to the
Office about applications for the classification of medium and low-voltage lines as
public lines, more specifically as distribution lines, and for the reclassification of such
lines within 30 days after the receipt of the application.
(2) The transmission system operator shall make a proposal to the Office in
connection with the public utility system in respect of the classification of high-voltage
lines as public lines, more specifically as transmission or distribution lines, and of the
reclassification of such lines.
Vhr. Article 42 During the procedure conducted by the Office in the competence
referred to in Article 37(1) of the VET the transmission system operator must deliver
its opinion to the Office in connection with the public utility system in order to facilitate
the assessment of the application for exemption for the interconnecting line.
Vhr. Article 43 (1) The authorised network operator, and the operator of the direct
line, the production line or the private line subject to authorisation shall attach the
following to the application for classification or reclassification:
(a) the designation of the line or network equipment as indicated in the Operating or
Distribution Code,
(b) indication of the nominal voltage of the line or network equipment,
(c) description of the role of the line or equipment in the electricity system,
(d) description of the number of connecting users and purchasers and the volume
of their consumption,
(e) the proposal of the transmission system operator in the case of high-voltage
lines.
(2) In addition to the data specified in paragraph (1), operators of direct, production
or private lines shall attach the following to their applications for the reclassification of
their lines as public, more specifically as transmission or distribution lines:
(a) description of the technical condition of the line,

(b) the statement of the authorised network operator having an operating licence
covering the given territory on the estimated costs of and the time needed for the
establishment of the public utility system in order to supply purchasers or users who
are supplied or intended to be supplied through the line,
(c) the statement of the authorised network operator having an operating licence
covering the given territory on the foreseeable costs of and time needed for the
operation by the authorised network operator in accordance with legislation should
the line be classified as public, and on the developments of the line deemed
necessary by the authorised network operator, and the estimated costs of such
developments,
(d) the statement of the electricity purchaser supplied through the direct, production
or private line on the fact that he is in possession of a valid contract or precontractual agreement for the purchase of electricity after the line is declared to be
public,
(e) the contract or pre-contractual agreement of the operator, or if the operator
and the owner are not the same person the owner of the direct, production or
private line concluded with the authorised network operator having an operating
licence covering the given territory, in which the parties settle the property and cable
rights status of, and the rules of the operation of the line classified as public upon
request, with effect from the date on which the line is declared to be public.
(3) If a proceeding is launched ex officio, the Office shall obtain the statement of the
operator of the direct, production or private line, and of the authorised network
operator having an operating licence covering the given territory concerning the
details under paragraphs (1) and (2).
(4) During the procedure for classifying a line as public, the authorised network
operator holding an operating licence covering the given territory shall cooperate with
the operator of the direct line, production line or private line, and they shall submit the
statements necessary for the Offices proceeding referred to in paragraph (3) within
the deadline set forth by the Office. If the client hinders the procedure, the Office may
apply the sanctions referred to in points (a) to (c) of Article 96(1) of the VET.
(5) During its proceedings launched ex officio for classifying a direct, production or
private line as public, the Office shall obtain the statement of the authorised network
operator having an operating licence covering the given territory and, if they
otherwise do not take part in the proceeding as clients, the statement of the owner or
operator of the direct or private line on the classification of the line as public.
(6) In order to ensure the conclusion of the contract referred to in point (e) of
paragraph (2) the Office shall endeavour to mediate an agreement between the
authorised network operator and the operator of the direct, production or private line.
If the parties do not manage to reach an agreement, the Office shall proceed in
accordance with paragraphs (3) and (5), and shall issue a resolution on the
proportionate distribution fee for the line declared to be public, and on the settlement
of operational costs between the authorised network operator and the owner or
operator of the line.
Vhr. Article 44 (1) The Office shall decide on the classification of a line as a
transmission or distribution line, or as public, and on the reclassification of such lines
in view of the interoperability of the electricity system, the security of supply, the
efficient and uninterrupted supply of electricity, the number of users or purchasers
connecting to the given line, and the volume of their consumption, the network
development plan of the electricity system, and other circumstances which are
relevant in the given case.

(2) The Office shall not refuse to classify lines as public, or to reclassify such lines,
if they are included in the network development plan of the electricity system
approved by the Office.
(3) At the same time as classifying a high-voltage direct, production or private line
as public, the Office shall modify the operating licence of the authorised network
operator having an operating licence covering the given territory ex officio. At the
same time the Office shall withdraw the operating licence of the operator of the
private line subject to authorisation.
(4) In the event that a direct or production line, or a private line subject to
authorisation is classified as public, the authorised network operator shall conclude a
network connection and network use agreement with the purchaser supplied through
the direct line or production line or the user supplied through the private line subject
to authorisation if they so request. If the existing network connection does not require
any modification in terms of technical conditions and the volume of available
capacity, the electricity purchaser supplied through the direct or production line, and
the user supplied through the private line subject to authorisation shall have the right
of connection obtained as an electricity purchaser supplied through the direct or
production line, or as a user supplied through the private line subject to authorisation
free of charge and without any additional reimbursement liability.
(5) If the direct or production line or private line subject to authorisation is refused to
be classified as public, the Office may require the authorised distribution network
operator having an operating licence covering the given territory to establish a public
utility system until the deadline set by the Office in order to supply electricity to
purchasers or users supplied through the direct or production line, or through the
private line subject to authorisation.
(6) The public utility system to be set up pursuant to the resolution of the Office,
and connection to that system shall be established on the basis of the claims
submitted by users, and under the conditions laid down in relevant legislation.
(7) Until the connection to the public utility system is established, the operator of the
direct or production line, or the private line subject to authorisation shall provide
access to the direct or production line, or the private line subject to authorisation
under the same conditions. The operator of the direct or production line, and the
private line subject to authorisation must operate and maintain the line in accordance
with the provisions of the authorisation, the VET, this Decree, and other relevant
legislation; otherwise the Office shall be entitled to proceed against it in accordance
with Article 96(1) of the VET.
Vhr. Article 45 A line which is declared by the Office to be public may be
reclassified only in case of a change in the details under points (a) to (c) and (e) of
Article 43(1) or in the nature of the line as a transmission or distribution line.
Authorisation of Direct Lines
Vhr. Article 77 (1) If the producer intends to suspend or terminate the generation of
a power plant which supplies electricity to purchasers through a direct line, and has
agreed with the authorised operator of the direct line and the purchasers that they will
switch from direct line supply to private line supply, an application for the
decommissioning of the direct line and an application for the establishment of a
private line shall be submitted at the same time as submitting the application for the
suspension or termination of electricity generation.
(2) Applications for an authorisation for the establishment or decommissioning of a
direct line shall be accompanied by the documents referred to in Annex 14.

Transmission System Control Operating Licence

VET Article 87 (1) The transmission system operator shall be a business


association operating in the form of a company limited by shares.
(2) The operating licence for transmission system control shall be valid for a
period of twenty-five years, and may be extended.
(3) The condition for submitting an application for a transmission system
control operating licence shall be for the Office to establish in its certification
procedure that the applicant complies with the separation rules pertaining to
the transmission system operator or the transmission system manager.
(4) The transmission system operator and the transmission system manager
shall be appointed by way of the transmission system control operating licence
issued by the Office. The content of the licence, depending on whether it is
issued for the transmission system operator or the transmission system
manager, shall be specified by the Office according to the provisions of this
Act and the Vhr. pertaining to the transmission system operator or to the
transmission system manager, respectively. The Office shall inform the
European Commission about the issuance of the licence, and shall send the
licence to the European Commission in order that it can be published in the
Official Journal of the European Union.
Transmission System Control Operating Licence
Vhr. Article 78 (1) Applications for a transmission system control operating licence
may be submitted within 30 days after the day following the publication of the
resolution on certification.
(2) The applicant certified in view of the separation rules referred to in Article 104 of
the VET shall have at least the right of use in respect of the following:
(a) the equipment necessary for transmission system operation as set forth in the
VET, this Decree and the Electricity Supply Codes, including network, system and
operation control, tariff metering and information technology equipment, and
(b) the transmission network and network equipment for transferring electricity in
conformity with the safety and quality requirements laid down in legislation and
standards.
Vhr. Article 78/A (1) A transmission system control operating licence may be
issued only for a company limited by shares under direct or indirect state control, and
only if
(a) it complies with the criteria laid down in the VET and in this Decree, and
(b) the subscribed capital thereof is at least HUF 100 billion HUF 10 billion in the
case of a transmission system manager certified in view of the separation rules
referred to in Article 104 of the VET the total amount of which has been paid or
made available.
(2) Applications for a transmission system control operating licence shall be
accompanied by the documents referred to in Annex 12/a.
Vhr. Article 78/B The transmission system manager shall be governed by the
provisions of this Decree pertaining to the transmission system operator, with the
stipulation that any reference to transmission system operator shall except in
Articles 99 to 99/B mean the transmission system manager.

Authorisation to Engage in Trading in Electricity

VET Article 88 (1)


(2) An all-inclusive authorisation to engage in trading in electricity, also
conferring entitlement to the direct supply of users, may be granted only to
business associations vested with legal personality, or the branch of a
company established in any Member State of the European Union or in a State
that is a party to the Agreement on the European Economic Area registered in
the domestic territory.
(3) A restricted authorisation to engage in trading in electricity, without
entitlement to supply users directly, may be granted to a foreign business
association registered in a Member State of the European Union or in a State
that is party to the agreement on the European Economic Area as a business
association, which engages in actual and lawful electricity trade in that state,
meets the criteria laid down in legislation issued by virtue of the authorisation
granted in this Act, is able to produce credible evidence to verify that it meets
said criteria, and operates an office in Hungary, which is continuously at the
disposal of the Office.
(a)(b)
(c)
(d)
(4)
Authorisation and Restricted Authorisation to Engage in Trading in Electricity
Vhr. Article 79 (1) Applications for authorisations and restricted authorisations to
engage in trading in electricity shall be accompanied by the documents specified in
Annex 15.
(1a) Applications for the operation of the branch referred to in Article 88(2) of the
VET shall be submitted by the parent company.
(2) A foreign business association may also fulfil the requirements for the operation
and availability of an office, as set forth in Article 88(3) of the VET, through any of its
Hungarian offices or legal representatives. The legal relationship between the
applicant and the Hungarian office or legal representative, and the lawfulness of
office use shall be attested in a credible manner when submitting the application.
(3) Notwithstanding Article 54(1)(b), the application shall be accompanied by the
certificate issued by the authority responsible for registration in accordance with the
law applicable to the establishment of the applicant foreign company on the
registration of the company and the registered data thereof.
(4) If the applicant fails to attach the certificate referred to in paragraph (3), or fails
to attest that it trades in electricity in the state of establishment in accordance with the
law, the Office shall in order to obtain the data necessary for the assessment of the
case contact the authority keeping the register of the foreign company, or the
authority supervising trade in electricity in the state of establishment.
Authorisation for the Operation of the Regulated Electricity Market

VET Article 89 (1) The operation of the regulated electricity market shall be
subject to authorisation under this Act.

(2) An authorisation for the operation of the regulated electricity market may
be issued only for a company limited by shares, or for a branch registered in
Hungary of a foreign company having a registered seat in a Member State of
the European Union, or in a State that is party to the Agreement on the
European Economic Area.
(2a) In addition to the cases referred to in Article 75(3), the Office may also
refuse to issue an authorisation for the operation of the regulated electricity
market if the applicant does not meet the criteria stipulated in Article 55(5).
(3) Applications for authorisation for the operation of the regulated electricity
market by means of branches may be refused by the Office, apart from the
reasons specified under paragraph (2a), if:
(a) there is no valid and effective international cooperation agreement
between the Office and the supervisory authority of the registered seat of the
applicant which is based on mutual recognition of supervisory authorities and
covers the supervision of branches,
(b) the applicant fails to supply a statement in which it offers full guarantees
for the liabilities incurred by its branch under its corporate name,
(c) the applicant fails to submit the permit for the foundation of a branch
issued by the supervisory authority of the registered seat of the applicant, or
its declaration of approval or acknowledgment,
(d)
(e) the head offices of the applicant are not located in the country where it
has a registered seat.
(4) The duties, rights and obligations of the authorised operator of the
regulated electricity market in relation to physical electricity trade shall be laid
down in specific other legislation and, within the framework of such legislation,
the operating licence and the Commercial Code.
(5)
Authorisation for the Operation of the Regulated Electricity Market
Vhr. Article 80 (1) Applications for an authorisation for the operation of the
regulated electricity market shall be accompanied by the documents specified in
Annex 16 shall be attached to .
(2) Applications for the operation of the branch referred to in Article 89(2) of the
VET shall be submitted by the parent company.
(3) In the case of authorised operators of the regulated electricity market operating
as branches, the restriction referred to in Article 54(1) of the VET shall apply to the
foreign company that established the branch.
Authorisation for Providing Universal Services
VET Article 90 (1) Authorisation for providing universal services shall be
granted by the Office for the service area indicated in the application. In the
process of issuing authorisations for providing universal services the Office
shall ensure that universal services are available throughout the entire territory
of Hungary.
(2) The Office may grant authorisation for providing universal services only to
the electricity traders referred to in Article 88(2). The activities of providers of
universal services carried out under authorisation to engage in trade in

electricity may not be permitted to interfere with the provision of universal


services.
(3)
(4) In the event that universal services are not available throughout the entire
territory of Hungary for any reason, the Office shall subject to paragraph (1)
have powers to compel electricity traders with significant power on the retail
market to submit an application for authorisation for providing universal
services.
Authorisation for Providing Universal Services
Vhr. Article 81 (1) The smallest service area which may be indicated in the
application for an authorisation for providing universal services shall be the county,
which shall include the metropolitan municipality located within the territory of the
county.
(2) Based on their operating licence providers of universal services shall be entitled
to import and export electricity.
(3) Applications for an authorisation for providing universal services shall be
accompanied by the documents referred to in Annex 17.
Amendment of Authorisations
VET Article 91 (1) The contents of an authorisation may, in the event of
significant changes in circumstances, be amended at the request of the holder
of the authorisation.
(2) The Office may amend an authorisation ex officio in the event of and for
compliance with changes in the regulatory environment.
(3) The amendment of an authorisation shall not be detrimental to the
security, quality and price of electricity supplied to users.
(4) The Office may withdraw the authorisation upon the request of the holder
of the authorisation.
Amendment of Authorisations
Vhr. Article 82 (1) In the event of the occurrence of circumstances providing
grounds for the amendment of an authorisation in particular changes in the content
of the annexes to the authorisation the holder of the authorisation shall inform the
Office and apply for the amendment of the authorisation within 30 days after such
changes have occurred.
(2) The rules pertaining to the issuance of authorisations shall apply to their
amendment as appropriate.
Common Provisions Relating To Corporate Events
VET Article 92 (1) (1) The demerger (division, separation), merger with another
company (merger by the formation of a new company or merger by
acquisition), winding up without succession, or reduction of the share capital
or equity capital by at least one-quarter, in accordance with Act IV of 2006 on
Business Associations (hereinafter referred to as: Gt.), of any authorised
operator (hereinafter referred to collectively as: corporate event), shall be
subject to a resolution of approval by the Office. Applications for registration

(or for the registration of any changes) in the company register shall be
submitted to the company court together with the resolution of the Office. The
Office may not refuse to grant an approval of the reduction of share capital or
equity capital if the reduction is rendered mandatory for the authorised
operator under specific other legislation.
(2) In the event of merger (merger by the formation of a new company or
merger by acquisition) under paragraph (1), the provisions of Article 70 of the
Gt. shall not apply to the authorisation issued by the Office.
(3) In connection with the corporate events referred to in paragraph (1), the
Offices resolution of approval prescribed in paragraph (1) shall not be required
in the following cases:
(a) in the case of a holder of a combined micro power plant authorisation,
(b) in the case of authorised operators of private lines, or
(c) in the case of authorised operators of direct lines.
(4) In the case of the transmission system operator, authorised distribution
network operators, providers of universal services, and the authorised
operator of the regulated electricity market a control agreement under Article
55(1) of the Gt. may not be concluded, any such agreement shall be null and
void, and Article 64 of the Gt. shall not apply to these authorised operators.
VET Article 93 (1) A contracting party shall notify the Office without delay if
the proportion of its direct and indirect shares conferring voting rights,
holdings, voting rights, or direct and indirect influence in any electricity
company reaches or exceeds the proportion set forth in Article 61(3) of Act
CXX of 2001 on the Capital Market (hereinafter referred to as: Tpt.). The Office
shall confirm the acknowledgement of the notification within 40 days from the
day after the receipt of the notification, or, in the case of a request for
information, after the receipt of the information requested by the Office. The
provisions of the Tpt. shall apply to the right to vote, indirect influence,
acquisition, the extent of the aforesaid, persons acting in concert, and the
content of the notification as appropriate.
(2) The prior approval of the Office shall be required for the acquisition of
voting rights or influence of more than 25%, 50% or 75% in any electricity
company, and for the exercise of the rights associated therewith.
(2a) After reaching the percentages approved under paragraph (2) the prior
approval of the Office shall not be necessary until the acquiring person
reaches the next level of acquisition subject to the prior approval of the Office
under paragraph (2) through further acquisition. However, the acquiring person
shall not be exempted from the notification liability referred to in paragraph (1).
(3) The provisions contained in paragraphs (1) to (2a) shall also apply to the
acquisition of interest among electricity companies falling within the scope of
this Act and among natural gas companies falling within the scope of the Get.
(4) The notification referred to in paragraph (1) shall not apply to authorised
operators of direct lines and private lines, and the acquisition of interest
referred to in paragraph (2) shall not be subject to the prior approval of the
Office in the following cases:
(a) in the case of a holder of a combined micro power plant authorisation,
(b) in the case of authorised operators of private lines,
(c) in the case of authorised operators of direct lines.
(5) Companies engaged in electricity generation, natural gas extraction or
trade in electricity or natural gas, and controlling shareholders of such

companies shall not acquire controlling shares in the transmission system


operator or its controlling shareholder either directly or indirectly. Acquiring
controlling shares in the transmission system operator or its controlling
shareholder shall be subject to the preliminary approval of the Office. This
provision shall not affect the provision of Article 102(1).
(6) The Offices preliminary resolution of approval shall be necessary for the
conclusion of legal transactions as a result of which a third-country national or
nationals would exercise control over the transmission system operator or its
controlling shareholder.
VET Article 94 (1) The Offices prior resolution of approval shall be required
for the authorised operator to outsource a major part, as specified in the Vhr.,
of its activities subject to authorisation under this Act; the authorised operator
shall inform the Office in advance about the outsourcing of other parts, as
specified in the Vhr., of its activities subject to authorisation under this Act.
Outsourcing may not result in the transfer of activities which are subject to
authorisation under Article 74 of this Act to a third person in their entirety.
(2) In the case of outsourcing the authorised operator shall be held liable for
the fulfilment of its obligations stipulated in legislation or official resolution as
if the activity was performed by itself.
(3) The prior resolution of approval or prior notification of the Office as
referred to in paragraph (1) shall not be required in connection with
outsourcing
(a) in the case of authorised producers,
(b) in the case of electricity traders, with the exception of authorised
providers of universal services,
(c) in the case of authorised operators of private lines or
(d) in the case of authorised operators of direct lines.
(4) The Offices prior resolution of approval shall be required for the
authorised operator to transfer, assign or lease its fundamental assets and
rights of material value specified in the operating licence to a third person, or
to convey or encumber them in any other way or pledge them as collateral
(hereinafter referred to collectively as: disposition of fundamental assets).
(5) The Offices prior resolution of approval referred to in paragraph (4) shall
not be required in connection with disposition of fundamental assets
(a) in the case of a holder of a combined micro power plant authorisation,
(b) in the case of electricity traders, with the exception of authorised
providers of universal services,
(c) in the case of authorised operators of private lines or
(d) in the case of authorised operators of direct lines.
VET Article 95 (1) The Office may refuse to grant approval or render its
approval conditional for the transactions referred to in Articles 92 to 94, if they
are deemed to pose any potential threat to the security of electricity supply, to
public safety, to energy policy objectives, to the discharge of activities subject
to authorisation, or the regulations for determining the price of transmission
system control and distribution activities and universal services, and the
regulations for determining the quality of such services, as well as the
principle of minimum cost.
(2) The Office shall refuse to grant approval for the transactions referred to in
Articles 92 to 94 if in consequence the authorised operator is no longer able to
comply with the requirements set out in Article 75(3)(c).

(2a) The Office shall refuse to grant approval for the transactions referred to
in Article 93(5) and (6) if during the certification procedure it established that,
as a consequence of the transaction, the transmission system operator would
no longer be able to comply with the separation rules pertaining to it.
(3) In the case of failure to notify the acquisition referred to in Article 93(1), or
in the absence of a confirmation of acknowledgement, or in the absence of the
resolution of approval referred to in Article 92(1) and Article 93(2), (5) and (6)
the acquiring party may not exercise any right vis--vis the company in respect
of its shares, except for the eligibility for dividend, and shall not be entered in
the share register or in the register of members. Applications for registration in
the share register, register of members and the company register shall be
submitted to the Office together with the document attesting the confirmation
or approval of the Office.
Common Provisions Relating To Corporate Events
Vhr. Article 83 (1) In the case of corporate events referred to in Article 92(1) of the
VET the application shall be submitted to the Office by the authorised operator
affected by the corporate event (if more than one authorised operator is affected,
applications shall be submitted separately).
(2) In the case of acquisition referred to in Article 93(2) of the VET the application
shall be submitted to the Office by the person intending to acquire interest directly.
(3) In the case of the transactions referred to in Article 94(1) and (4) of the VET the
application shall be submitted to the Office by the authorised operator concerned, or,
in the case of the transmission system manager, the owner of the transmission
network or the owner of the equipment necessary for transmission activity.
(4) The following shall be attached to the application referred to in paragraphs (1) to
(3) with due consideration of paragraph (6):
(a) if the application is submitted by a person other than the authorised operator,
the name (full company name) of the authorised operator affected by the change or
by the application, and the name and contact details of its representative,
(b) a certificate of incorporation of the authorised operator, which shall not be older
than 30 days, or a copy thereof,
(c) a document evidencing that the financial and operational requirements laid
down in this Decree are still met,
(d) the statement of the authorised operator that the reasons for exclusion referred
to in Article 75(3)(c) to (e) of the VET do not apply,
(e) designation of the application for official approval, detailed description of the
transaction requiring official approval,
(f) the document attesting the payment of the fee of the proceeding (one for each
applicant),
(g)
(h) the specimen signature certified by a notary public, or sample signature
countersigned by an attorney-at-law during participation in a company registration
(change registration) proceeding of those persons who signed the documents
attached to the application, or an authentic copy of the above.
(5) In addition to the documents specified in paragraph (4), the following shall be
attached to the application referred to in paragraph (2), taking into account paragraph
(6):
(a) telephone number and e-mail address of the applicant intending to acquire
influence,

(b) the certificate of incorporation of the applicant intending to acquire influence,


which shall not be older than 30 days, or a copy thereof; in the case of a foreign
company, the certificate issued by the authority responsible for registration in
accordance with the law applicable to the establishment of the company on the
registration of the company and the registered data thereof,
(c) presentation of the investments and shares in the Hungarian electricity sector of
the applicant intending to acquire influence, and of its affiliated companies, in the
authorised operators covered by the VET and the Act on Natural Gas Supply,
(d) the statement of the applicant intending to acquire influence, laid down in a
private document providing full evidence, in which the applicant gives its consent to
the checking of the authenticity of the document(s) attached to the application by the
bodies requested by the Office,
(e) a figure showing the corporate structure (structure of authorised operators) prior
to the transaction for acquisition and after the conclusion of such transaction, which
shall indicate the direct and indirect ownership and management relations.
(6) If the applicant except if it is a foreign company other than a foreign business
association registered in a Member State of the European Union or a State that is
party to the Agreement on the European Economic Area fails to attach the
documents referred to in point (b) of paragraph (5) to the application, the Office shall
contact the body keeping the company register or the authority keeping the register
of the foreign company in order to obtain the data necessary for the assessment of
the case.
Rules Pertaining to the Performance of Activities Subject to Authorisation by Third
Persons
Vhr. Article 84 (1) The transmission system operator referred to in Articles 102 to
102/E of the VET shall not be entitled to outsource any of the daily transmission
system control activities, and the transmission system operator referred to in
Article 103 of the VET, the transmission system manager, the authorised distribution
network operator and the provider of universal services shall not be entitled to
outsource the activities covered by Article 56.
(2) In addition to the activities listed in the authorisation, those activities without
which the authorised operator would not be able to perform the activities subject to
authorisation at an appropriate quality and in a safe and uninterrupted manner shall
be regarded as significant parts of the activity subject to authorisation, regardless of
whether the authorised operator has concluded or intends to conclude one or more
transactions concerning the activity.
(3) The authorised operator referred to in paragraph (1)
(a) shall be entitled to outsource that part of its activity subject to authorisation
under the VET which is considered to be significant under paragraph (2) after the
preliminary approval of the Office,
(b) shall be entitled to outsource that part of its activity subject to authorisation
under the VET which is not considered to be significant under paragraph (2) after
sending a notification to the Office in advance.
(4) If the Office gives its consent to the outsourcing of the activity during the
proceeding referred to in point (a) of paragraph (3), and the activity is not included in
the operating licence, the authorised operator shall apply to the Office for the
modification of its operating licence within 30 days after the delivery of the approving
resolution.

(5) During the proceeding referred to in point (a) of paragraph (3) launched on the
basis of the application referred to in Article 83(3) to (4) the Office shall carry out an
in-depth examination of compliance with the principle of minimum cost pursuant to
Article 95(1) of the VET. To obtain approval the authorised operator must prove that
performing the activity by way of outsourcing is more compliant with the principle of
minimum cost and the interests of users under the given financial conditions and
during the period of outsourcing than performing the activity by itself.
Vhr. Article 85 (1) The authorised operator shall ensure that outsourcing is in
accordance with the provisions of the VET and legislation issued under the
authorisation thereof, its authorisation, the Offices resolutions pertaining to the
authorised operator, its standard service agreement and the Electricity Supply
Codes.
(2) The person performing the outsourced activity (hereinafter referred to as:
partner) shall comply with the provisions of paragraph (1). If the partner fails to
comply with the provisions of paragraph (1), the Office
(a) shall apply the sanctions referred to in Article 96 of the VET against the
authorised operator, and
(b) with reference to the severity of infringement, may withdraw its resolution on the
approval of outsourcing, and may require the authorised operator to perform all or
part of the activity covered by the resolution through its own personnel or assets, or
to issue a new call for tender for a new partner.
Vhr. Article 86 For the preliminary approval referred to in Article 84(3)(a) the
authorised operator shall submit the outsourcing contract or the draft thereof, which
shall include at least the following for each outsourced activity:
(a) the content of the activity, including its location and date,
(b) the parameters for measuring the quality of the service,
(c) the expected values of such parameters,
(d) the consequences of non-compliance with the expected quality of the service,
(e) the method of costing,
(f) the provisions for data flow in respect of malfunction recovery as a priority
service, the norms for the period of malfunction recovery, and the system of archiving
factual data, and
(g) the conditions, procedure and legal consequences of termination of contract.
Vhr. Article 87 (1) If the partner is an affiliated company of the authorised operator,
it shall not authorise any other company to perform all or part of the outsourced
activity.
(2) The partner shall not involve the affiliated company of the authorised operator in
the performance of the activity as a subcontractor.
Vhr. Article 88. (1) During the selection and appointment of the partner if this
procedure is not covered by the Act on Public Procurement (hereinafter referred to
as: Kbt.) the authorised network operator shall proceed in accordance with the
internal selection codes referred to in Article 24(2) of the VET.
(2) In the internal selection codes referred to in paragraph (1) the authorised
network operator shall lay down the criteria of competition or tendering for the
procurement of services rendered upon selection and appointment, and for activities
outsourced under the resolution of approval of the Office. The selection code shall
contain at least the following:
(a) the criteria on the basis of which the authorised operator establishes that
procurements relating to the maintenance, repair, renewal and improvement of the

network and customer service activities are governed by the provisions of the Kbt., or
if the authorised operator will not carry out such procurements, reference to this fact;
(b) the criteria on the basis of which the authorised operator establishes that
procurements relating to the maintenance, repair, renewal and improvement of the
network, and customer service activities are governed by the criteria and procedures
of its internal selection code;
(c) the rules of procedure of competition or tendering, and a description of the
system of rules applied in such procedures,
(d) the rules of procedure and criteria according to which a natural person or
economic operator may submit a tender for selection and appointment.
(3) The internal selection code shall be approved by the Office. The authorised
operator shall apply for the approval of any modification of the internal selection code
prior to the implementation of the modification within the administrative time limit
specified in Article 168 of the VET.
(4) The authorised network operator shall publish its consolidated and numbered
internal selection codes on its homepage in a chronological order.
(5) In respect of outsourced activities under Article 84(3)(a) the authorised network
operator shall carry out the selection procedure referred to in Article 24(2) of the VET
at least every three years.
Vhr. Article 89 (1) If the authorised network operator makes participation in the
selection procedure subject to preliminary qualification as to the capability to perform
the activities to be outsourced (hereinafter referred to as: qualification procedure), the
conditions of application, the rules of procedure, and the criteria of adjudging
candidates shall be laid down in an internal qualification code. The internal
qualification code and the amendments thereto shall be published by the authorised
network operator on its homepage.
(2) In the case referred to in paragraph (1) the authorised network operator shall
carry out the qualification procedure at least once a year, and shall publish the initial
date of the procedure on its homepage at least three months before the
commencement of the qualification procedure.
Rules of the Disposition of Fundamental Assets
Vhr. Article 90 (1) In the authorisation of the transmission system manager, the
authorised distribution network operator and the provider of universal services the
Office with due consideration of the sub-activities and partial activities of the activity
subject to authorisation under the VET shall determine those fundamental assets
and rights of material value the disposition of which is subject to the approval of the
Office, and shall determine the conditions of the disposition of such assets.
(2) The transmission system manager, the authorised distribution network operator
and the provider of universal services shall perform the elements of their activities
subject to authorisation which are specified in the authorisation through the use of
their own assets. The transmission system manager, the authorised distribution
network operator and the provider of universal services must be in possession of at
least the following:
(a) for transmission system managers, equipment for system and operation control
and operation, and information technology and other equipment necessary for
system control, metering and settlement of accounts,
(b) for authorised distribution network operators
(ba) the high-voltage and medium- and low-voltage distribution network, and

(bb) metering equipment, and metering data collection systems for the settlement of
accounts;
(bc) operation control equipment, including telecommunication equipment for
operation control, and equipment for capacity regulation, and
(bd) information technology equipment for the data processing and billing of the
systems referred to in point (bb) and for operation control, and
(c) for the provider of universal services, equipment for the settlement of accounts.
(3) In the case of the transmission system operator referred to in Articles 102 to
102/E or 103 of the VET the approval of the disposition of fundamental assets shall
be conditional on the resolution on certification adopted as result of the proceeding
launched under Article 160(4) of the VET.
Breach of Authorisation
VET Article 96 (1) In the event of the authorised operators breach of any of
the obligations specified in this Act and in specific other legislation
implementing it, in Regulation (EC) No 714/2009, in the directly and generally
applicable legal acts and provisions of the European Union issued by the
European Commission on the basis of Regulation (EC) No 714/2009, in the
binding decisions issued by the Agency on the basis of Regulation (EC) No
713/2009 of the European Parliament and of the Council of 13 July 2009
establishing an Agency for the Cooperation of Energy Regulators (hereinafter
referred to as: Regulation (EC) No 713/2009), in the Electricity Supply Codes
and in its own standard service agreement, or the resolutions issued by the
Office, the Office shall
(a) shall call on the authorised operator in writing indicating the applicable
legal consequences to comply with its obligations,
(b) may impose a fine in the amount specified in the relevant government
decree, also in individual cases consistent with the substantive severity of the
infringement,
(c) may amend or withdraw the authorisation, if despite the written notice
referred to in point (a) and the fine imposed under point (b) the authorised
operator in question fails to cease the infringement or fails to honour its
obligations,
(d) shall revoke the authorisation if:
(da) the authorised operator is unable to comply with its obligations, or
operates the electrical installation in a manner that seriously endangers
security of supply, human life, health, safety of operation or property or the
environment,
(db) the requirements for issuing the authorisation are no longer satisfied,
and this cannot be remedied within a reasonable time limit,
(dc) the licence of the founder of a branch for the activity concerned has been
revoked by the supervisory authority of its registered seat,
(dd) the authorisation has been obtained by deceit, by supplying false
information, or in any other unlawful way.
(2) The Office may impose the sanctions referred to in points (a) and (b) of
paragraph (1) upon the authorised operator of a micro power plant that is not
subject to authorisation under this Act, and upon a user reselling electricity
through a private line not subject to authorisation that was established before
1 October 2011, or through a private line established within a single building
for the purposes referred to in Article 39(1)(b) and (c) for any infringement of

their obligations prescribed by law, or may prohibit the person in question


from pursuing the activity with immediate effect.
(3) The Office may impose the sanctions referred to in points (a) and (b) of
paragraph (1) upon an integrated electricity companys member that is not
subject to authorisation under this Act, and upon the owner of electronic
communication network components for any infringement of their obligations
prescribed in this Act and specific other legislation adopted under
authorisation of this Act.
(3a) The Office may impose the sanctions referred to in points (a) and (b) of
paragraph (1) upon the owner of the transmission network for any infringement
of his obligations prescribed in the legislation and legal acts of the European
Union referred to in paragraph (1), and in the Offices resolutions.
(4) In order to ensure the continuous and secure supply of electricity, the
activities specified in the operating licence shall be uninterrupted and
sustained until the conclusion of proceedings conducted under paragraphs (1)
to (3) and until the conclusion of any liquidation or dissolution proceeding.
Unauthorised Performance of Activities
Which are Subject to Authorisation

VET Article 97 The Office may impose the sanctions referred to in Article
96(1)(a) and (b) for the unauthorised performance of any activities which are
rendered subject to authorisation by this Act, or may prohibit the person in
question from pursuing the activity with immediate effect.
Penalties
VET Article 98 (1) In the cases of levying a fine under Articles 96 to 97, the
Office shall weigh the relevant facts of the infringement, with particular regard
to the following:
(a) gravity of the infringement (the gravity of jeopardising electricity supply,
scope and extent of private interests violated);
(b) duration of the illegal conduct;
(c) extent of damage caused by the infringement, or the financial gain
obtained by the infringement;
(d) market position and influence of the infringer;
(e) any detrimental impact the infringement has on the electricity market;
(f) the degree of responsibility;
(g) any prior infringement;
(h) any conduct of cooperation in terms of action taken to cease the
infringement;
(i) any voluntary action taken to cease the infringement prior to and
independently from the Offices proceedings.
(2) Fines may not be added to costs to comprise a price increasing factor.
Breach of Authorisation, Penalties
Vhr. Article 91 (1) The Office may apply the sanctions referred to in Article 96(1)(a)
and (b) of the VET jointly as well.

(2) The upper limit of the penalty imposed under Articles 96 to 97 of the VET shall
be the higher of the following amounts:
(a) 1% of the annual net turnover of the authorised operator from its activity subject
to authorisation in the year preceding the reference year,
(b) HUF 100 million, or
(c) in case of the transmission system operator, 10% of its annual turnover from its
transmission system control activity in the year preceding the reference year.
(3) The penalty may be imposed repeatedly as well.
(4) The penalty shall be paid through a cash transfer order or by transfer to the cash
account of the Office which is indicated in the resolution imposing the penalty.
Appointment of an Authorised Operator with a View to Ensuring Uninterrupted
Supply

VET Article 99 (1) With a view to securing the uninterrupted supply of


electricity the Office may appoint another authorised operator within the
framework of the procedure described in specific other legislation, if the
activities specified in the authorisation are not being performed in compliance
with the relevant statutory provisions, thereby posing a direct threat to the
security of electricity supply or could directly lead to a significant breakdown
in the electricity system.
(1a) The Office may order the transfer of all or certain activities of the
transmission system operator to a person certified under Article 160(1)(e) and
appointed by the Office (hereinafter referred to as: transmission system
manager), if
(a) the transmission system operator fails to fulfil its obligations stipulated in
the legislation and legal acts of the European Union referred to in Article 96(1),
(b) the application of the sanctions under Article 96(1)(a) and (b) did not
produce any results, and
(c) the court acting in public administration cases has confirmed the
resolution of the Office during the revision of the resolution being the basis of
the imposition of the sanctions referred to in Article 96(1)(a) and (b), or the
resolution of the Office was not contested within the time provided for such
contestation.
(1b) If a transmission system manager is appointed under paragraph (1a), the
Office shall require the owner of the transmission network to fulfil its
obligations referred to in Article 104(2) to (4), and, by issuing the authorisation
referred to in Article 87(4), shall require the transmission system manager to
perform its duties.
(2) In the event of appointing another authorised operator, the Office may
compel the original authorised operator to transfer its facilities necessary for
the continuous and secure supply and generation of electricity, transmission,
distribution, provision of services, trade and system control, as specified by
the Office. to the appointed authorised operator and to make available the
records and data required to perform those activities.
Chapter XII
SEPARATION OF ACTIVITIES

Common Regulations on Separation Relating to Vertically Integrated Electricity


Companies
VET Article 100 (1) In connection with the requirements of separation of
activities, and independence in terms of legal personality, organisation and
decision making, the provisions of the Gt. shall apply to authorised network
operators that are members of a vertically integrated electricity company
subject to the derogations set out in this Act.
(2) In connection with transmission system control or distribution operations
performed by a vertically integrated electricity company, transmission system
control and distribution operations shall be separated from operations other
than transmission system control and distribution in terms of legal personality,
organisational structure and decision-making.
(3) In order to ensure the independence referred to in paragraph (2), the
following minimum criteria shall be met:
(a) the authorised network operator may not participate in any other activity
that is subject to authorisation under this Act;
(b) the authorised network operator may not acquire shares in another
authorised operator, with the exception of authorised operators of the
regulated electricity market and other authorised network operators;
(c) the rights and obligations, wages, other allowances or remunerations, the
conditions of work, competences and reporting obligations of the authorised
network operators executive officers, manager, executive employees,
supervisory board members peremptory supervisory board members in the
case of authorised distribution network operators and the director of the
department performing the authorised activities (hereinafter referred to as:
director of department), as laid down in the employment contract, contract
governing any other legal relationship for employment, or in the document of
appointment (for the purposes of this Chapter hereinafter jointly referred to as:
employment contract), shall be determined so as to ensure an independent,
unbiased and non-discriminatory decision-making process with respect to the
functioning of the authorised network operator;
(d) persons who have concluded an employment contract as referred to in
point (c) shall not acquire shares in an authorised operator other than the
authorised network operator, or in the affiliated company of an authorised
operator, shall not function as an executive officer, supervisory board
member peremptory supervisory board member in the case of authorised
distribution network operators or manager of an authorised operator, and
shall not establish an employment relationship or other legal relationship for
employment with another authorised operator;
(e) the manager, executive employee and director of department referred to in
point (c) shall not be assigned to another member of the integrated electricity
company;
(f) any executive officer, supervisory board member peremptory
supervisory board member in the case of authorised distribution network
operators manager and executive employee referred to in point (c) shall be
authorised to join another authorised operator in the capacity of an executive
officer, manager, supervisory board member or executive employee within one
year from the time of termination of his previous employment relationship,
other legal relationship for employment or appointment (for the purposes of

this Chapter hereinafter jointly referred to as: employment relationship) subject


to the prior consent of the Office; this provision, however, shall have no effect
on the compensation paid in connection with the obligation set forth in Act XXII
of 1992 on the Labour Code arising after the termination of employment.
(4) The provisions of point (d) of paragraph (3) shall not apply between the
authorised operator of the regulated electricity market and the transmission
system operator if the transmission system operator owns shares in that
particular company limited by shares operating the regulated electricity
market.
(5) In the case of activities performed by third persons which are not subject
to authorisation under this Act (hereinafter referred to as: supporting activity)
the authorised network operator shall be held liable for the fulfilment of its
obligations laid down in legislation, official approving resolutions and the
operating licence as if the given activity was performed by the authorised
network operator itself.
Common Regulations on Separation Relating to Vertically Integrated Electricity
Companies
Vhr. Article 92 Following the termination of their employment relationship, any
other legal relationship for employment, or appointment (hereinafter jointly referred to
as: employment relationship) the executive officer, supervisory board member
peremptory supervisory board member in the case of authorised distribution network
operators , manager, executive employee or the director of the department
performing authorised activities (hereinafter referred to as: director of department) of
the authorised network operator shall manage any information obtained from the
authorised network operator to which market participants do not have open access
as business secrets.
Vhr. Article 93 (1) The authorised network operator shall provide for a department,
and department staff, which is able to make independent decisions concerning
activities outsourced under Article 84(3) in accordance with the provisions of Articles
84 to 89.
(2) The documents sent by the Office in respect of outsourced activities shall be
delivered to the addresses indicated in the authorisation of the authorised network
operator.
Vhr. Article 94 (1) The authorised network operator shall update the compliance
program at least once every four years, and shall submit it to the Office for approval
until 30 September of the year preceding the period affected by the updated
compliance program.
(2) The authorised network operator shall publish the approved compliance
program and the approving resolution of the Office on its homepage.
(3) The mandatory content elements of the compliance program shall be the
following:
1. description of the internal and external business processes of the authorised
network operator on the level of activities, which ensures that the operation of the
authorised operator is independent from the other members of the vertically
integrated electricity company and that it has independent decision-making
capacities, including a presentation of those competences of the other members of
the vertically integrated electricity company which affect the operation of the
authorised network operator;

2. competences, and routes of information flow and reporting, relating to the


different management levels and resulting from the organisational structure of the
vertically integrated electricity company and from the statutes of the member
companies of the vertically integrated electricity company;
3. composition of the main decision-making bodies of all members of the vertically
integrated electricity company;
4. availability of personal, material and financial resources necessary for the
independent performance of the activities subject authorisation under the VET;
5. possible reasons for the termination of the employment relationship of the
executive officer, manager, supervisory board member peremptory supervisory
board member in the case of authorised distribution network operators , executive
employee and director of department;
6. elements of the remuneration of the executive officer, manager, supervisory
board member peremptory supervisory board member in the case of authorised
distribution network operators , executive employee and director of department, as
well as the premiums and bonuses received by such persons;
7. description of the processes of customer relations management;
8. detailed rules of conduct which pertain to persons in an employment relationship
with the authorised network operator and ensure equal treatment;
9. the obligations of persons in an employment relationship with the authorised
network operator in relation to the implementation of the compliance program;
10. the system of training courses for presenting the separation of activities to
persons in an employment relationship with the authorised network operator, and its
course outline;
11. data management methods and their implementation in the information
technology systems, including the categorisation of the various types of data, and the
management of confidential information;
12. data management rules and procedures required in the case of outsourcing;
13. supervision and monitoring of the application of the rules for the separation of
activities;
14. system of sanctions applicable in the case of violations of the rules for the
separation of activities;
15. the circumstances and contractual conditions of performing outsourced
activities belonging to transmission system control and authorised distribution
network operation, with a detailed description of the criteria of pricing and service
quality;
16. the circumstances and contractual conditions of performing supporting
activities, with a detailed description of the criteria of pricing and service quality;
17. measures taken in order to physically separate network activity within the
vertically integrated electricity company and to create a unique image, as well as a
presentation of the means by which the authorised network operator differentiates
itself from the other members of the vertically integrated electricity company in terms
of communication and branding;
18. schedule of the implementation of provisions laid down in the compliance
program, presentation of future expectations in addition to the results and progress
achieved and
19. appointment of a department of the authorised network operator for the
compilation of the compliance program.

Vhr. Article 95 (1) The compliance inspector shall prepare the compliance report in
each calendar year, and shall send it to the Office for approval until 1 March of the
year following the given calendar year.
(2) The compliance report shall not be rendered subject to approval within the
vertically integrated electricity company.
(3) The mandatory content elements of the compliance report shall be the following:
(a) annual experiences and evaluation of the implementation of the compliance
program pertaining to the separation of activities, following the mandatory and other
content elements of the compliance program;
(b) description and explanation of any changes in the compliance program since its
approval, highlighting business processes, organisational structures, competences,
as well as the routes of information flow and reporting;
(c) changes in the management of the authorised network operator and the
explanation for such changes;
(d) courses held on the basis of the compliance program;
(e) changes in information technology and administration implemented on the basis
of the compliance program;
(f) measures to be taken in the following calendar year in connection with the
separation of activities;
(g) any derogation from the compliance program and the explanation for such
derogations;
(h) presentation of litigation and other disputes relating to the separation of
activities, providing a detailed description of disputes relating to network access and
information management;
(i) detailed evaluation of supporting and outsourced activities, highlighting marketbased pricing and the supervision of quality requirements and
(j) measures taken in order to ensure an individual corporate image, communication
and brands independent from the vertically integrated electricity company and
continuous independence.
(4) If misleading or false information is provided, the Office shall refuse the approval
of the compliance report and shall impose the sanctions referred to in Article 96(1) of
the VET upon the authorised network operator.
Vhr. Article 96 At the same time as submitting the compliance program and the
compliance report to the Office, in the case of confidential information, the authorised
network operator or the compliance inspector may request certain parts of the
compliance program and the compliance report to be managed as confidential. In the
case of the approval of the Office the parts which are classified in the approving
resolution as confidential shall not need to be published on the homepage of the
authorised network operator.
Vhr. Article 97 (1) At the same time as submitting the annual compliance report the
transmission system operator and the authorised distribution network operator shall
make a statement declaring that they do not have an ownership share in another
authorised operator, not including another authorised network operator and the
authorised operator of the regulated electricity market.
(2) At the same time as submitting the compliance report, the authorised network
operator shall inform the Office annually whether the person referred to in
Article 100(3)(c) of the VET has acquired a share in an authorised operator under the
VET other than an authorised network operator, or in the affiliated company thereof,
or functions as the executive officer of such authorised operator, or has established
an employment relationship with such authorised operator.

(3) The person referred to in Article 100(3)(c) of the VET shall provide all necessary
information to the authorised network operator with whom he has established an
employment relationship in order to allow for the fulfilment of the authorised network
operators obligations referred to in paragraph (2).
Rules on Separation pertaining to Vertically Integrated Electricity Companies where
a Member is an Authorised Distribution Network Operator
VET Article 101 (1) In order to ensure the independence referred to in Article
100(2), the following minimum criteria shall apply to authorised distribution
network operators in addition to the criteria laid down in Article 100(3):
(a) the remuneration or wages and other benefits for the executive officer,
manager, peremptory supervisory board members and executive employees of
an authorised distribution network operator may not be established contingent
upon the profitability of activities of the vertically integrated company that are
not related to distribution operations;
(b) in due consideration of the provisions of this Act, authorised distribution
network operators shall take their decisions with respect to technical means,
finances and personnel required to carry out the activities subject to
authorisation under this Act, including the decisions regarding day-to-day
operations within the framework of the annual business plan, and decisions
regarding supporting activities, outsourcing, and the construction,
maintenance and renovation of distribution lines in an unbiased and nondiscriminatory manner. This shall not prevent the parent company of the
authorised distribution network operator from approving the authorised
distribution network operators annual business plan, and from imposing
general limitations to keep the indebtedness of its subsidiary in check, with the
stipulation that the parent company shall not be permitted to give instructions
to the authorised network operator during the implementation of the annual
business plan in respect of the day-to-day operations, and the construction,
maintenance and renovation of distribution lines;
(c) the authorised distribution network operator shall have independent
power of decision on whether to keep the management of its cash flows within
the financial year independent or to join the common cash flow system of the
company group;
(d) the authorised distribution network operator must be in possession of the
personnel and financial resources, as well as the assets and technical
equipment necessary for distribution activities;
(e) the authorised distribution network operator shall differentiate itself from
the vertically integrated electricity company in terms of communication and
branding; and
(f) the authorised distribution network operator shall prepare a compliance
program which presents the measures and conditions ensuring nondiscriminatory and independent operation. The authorised distribution network
operator shall prepare an annual compliance report on the implementation of
the compliance report and on the results and deficiencies found.
(2) The compliance program referred to in point (f) of paragraph (1) shall be
approved by the Office.
(3) The monitoring of the implementation of the compliance program and the
preparation of the compliance report shall be the responsibility of the
independent compliance inspector appointed by the authorised distribution

network operator. The compliance inspector may have access to all


information of the authorised distribution network operator and its affiliated
company to the extent necessary for performing his duties laid down in
legislation. The compliance report shall be submitted to the Office for approval,
and shall be published by the authorised distribution network operator on its
homepage after approval.
(4) The compliance inspector shall be a legal entity or a natural person
without criminal records, and for the purpose of independence the provisions
of Article 102/A(3)(a) and Article 102/B(1) and (2) shall apply to him as
appropriate.
Rules of Separation pertaining to Vertically Integrated Electricity Companies where
a Member is an Authorised Distribution Network Operator
Vhr. Article 98 (1) The rules on the rights and obligations, wages, other allowances
or remunerations, the conditions of work, competences and reporting obligations, as
well as the termination of the employment relationship of the executive officer,
manager, peremptory supervisory board member, executive employee and director of
department of the authorised distribution network operator shall be laid down in the
employment contract, in the contract governing any other legal relationship for
employment, or in the document of appointment (hereinafter jointly referred to as:
employment contract). In respect of the persons mentioned above the authorised
distribution network operator shall forthwith inform the Office about any terminations
of employment and their reasons and circumstances.
(2) The authorised distribution network operator shall make a proposal to the parent
company in respect of its own annual business plan and the extent of indebtedness.
If the parent company does not approve the proposal of the authorised distribution
network operator, the authorised distribution network operator shall inform the Office
about the refusal or modification, as well as the reasons and circumstances thereof.
(3) If the authorised distribution network operator has a holding in the authorised
operator of the regulated electricity market, it must make a statement within the
deadline set in Article 97(1) concerning compliance with the ownership limits referred
to in Article 54 of the VET.
Rules of Separation pertaining to Vertically Integrated Electricity Companies where
a Member is a Transmission System Operator
VET Article 102 (1) Subsidiaries of vertically integrated electricity companies,
which are engaged in production or trade shall not acquire shares, either
directly or indirectly, in the transmission system operator. The transmission
system operator shall not acquire shares, either directly or indirectly, in
subsidiaries of vertically integrated electricity companies, which are engaged
in production or trade.
(2) The transmission system operator shall set up a supervisory board and
shall provide it with the authorisations necessary for performing its tasks
stipulated in this Act. In addition to the powers laid down in the Gt., the
supervisory board shall decide on the following:
(a) matters which are likely to have a significant effect on the value of the
property of shareholders,
(b) the matters referred to in Article 102/A(1),

(c) the appointment and termination of the term of office of the compliance
inspector referred to in Article 102/E.
(3) Resolutions affecting the annual and long-term financial plan of the
transmission system operator, the dividend payable to shareholders, and the
level of indebtedness of the transmission system operator shall be issued in
accordance with point (a) of paragraph (2).
(4) The competence of the supervisory board shall not cover decisions
relating to the day-to-day operation of the transmission system operator, the
day-to-day operation of the transmission network, and the preparation of the
network development plan.
(5) From amongst the members of the supervisory board, the provisions of
Article 102/A(2) to (3), Article 102/A(4)(a), Article 102/A(6), and Article 102/B(1)
to (2) shall apply to the half minus one of the members, with the exception that
Article 102/A(2)(b) shall apply to all members of the supervisory board.
(6) The supervisory board shall consist of members representing the
vertically integrated electricity company, third-party shareholders, and, in
accordance with Article 38(1) of the Gt., employees. By way of derogation from
the proportions set forth in the Gt., 1/9 of the members, but at least 1 person,
shall represent the employees.
VET Article 102/A (1) The establishment and extension of the employment
relationship, the conditions of work including remuneration and the
termination of the employment relationship of the executive officer, manager,
executive employee and director of department of the transmission system
operator (hereinafter jointly referred to as: operational manager) shall be
decided on by the supervisory board.
(2) Prior to the relevant decision, the Office shall be informed about the
establishment of the employment relationship of the operational manager, the
conditions governing the employment relationship, its duration and
termination, and the reasons for the proposal on the termination of the
employment relationship. The decision shall enter into force only if the Office
does not raise any objections within 20 days. The Office may raise objections
to the decision if there are doubts concerning the following:
(a) the professional independence of the candidate or
(b) the reasons of the early termination of the employment relationship.
(3) In the case of the early termination of the employment relationship, the
operational manager may initiate an official investigation with the Office. If the
Office finds that the decision is contrary to the provisions of this Chapter
pertaining to the separation of activities (hereinafter referred to as: separation
rules), or to the resolutions of the Office, it shall be entitled to apply the
sanctions referred to in Article 96. The provisions of paragraph (2) and this
paragraph shall not affect the right of the operational manager to seek legal
remedy.
(4)
(a) The majority of operational managers shall not have been in an
employment relationship with the vertically integrated electricity company
except for the transmission system operator and shall not have had direct or
indirect interest in said company during the three years preceding the
establishment of their employment relationships, and

(b) the minority of operational managers shall not have been an operational
manager of the vertically integrated electricity company during the 6 months
preceding the establishment of their employment relationships.
(5) If the operational management of the transmission system operator is not
carried out by a body, the requirements laid down in point (a) of paragraph (4)
shall apply to the operational manager.
(6) The operational manager shall not establish an employment relationship
with the vertically integrated electricity company except for the transmission
system operator and shall not have direct or indirect interest in said company
during the four years following the termination of the employment relationship.
(7) The provisions of paragraph (3), point (a) of paragraph (4), paragraph (6),
and Article 102/B(1) and (2) shall apply to persons who report directly to the
operational manager, and who perform tasks relating to the operation,
maintenance or improvement of the transmission network.
VET Article 102/B (1) Persons employed by the transmission system operator
shall not establish an employment relationship with the vertically integrated
electricity company except for the transmission system operator and shall
not have direct or indirect interest in said company.
(2) The wages, other benefits or remunerations for the persons employed by
the transmission system operator may not be established contingent upon the
profitability of activities of the vertically integrated company that are not
related to transmission system control, and such persons shall not receive
cash benefits from such companies.
(3) The transmission system operator shall be in possession of the following:
(a) technical equipment, assets, personnel and financial resources necessary
for performing its activities, and for fulfilling its obligations laid down in this
Act,
(b) the property rights of the transmission network, of the equipment
necessary for daily transmission activities, system and operation management,
and tariff metering, and of the information technology equipment necessary for
its activities, as well as electronic communication network components, and
(c) own personnel necessary for performing daily transmission system
control, and for providing corporate law, accounting and information
technology services.
(4) The owner of the electronic communication network components shall
conclude an agreement with the transmission system operator on the
electronic communication network components in accordance with the
provisions of the Vhr., taking into account point (b) of paragraph (3).
(5) The hiring-out of workers between the transmission system operator and
the vertically integrated electricity company shall be forbidden.
VET Article 102/C (1) The transmission system operator shall not receive
cash benefits from subsidiaries of the vertically integrated electricity company
which are engaged in production or trade in electricity.
(2) The transmission system operator shall not use the services of the
vertically integrated electricity company except in the case referred to in
paragraph (4). Under the conditions approved by the Office, the transmission
system operator shall be entitled to render services to the vertically integrated
electricity company, provided that such services are available to any system
user under the same conditions and in a non-discriminatory manner, and if

such services do not restrict competition in the field of production and trade in
electricity.
(3) The financial and commercial relations between the transmission system
operator and the vertically integrated electricity company, including the
conditions of credits and loans provided by the transmission system operator
to the vertically integrated electricity company, shall meet market conditions.
The transmission system operator shall keep a detailed record of such
relations, and shall make it available to the Office upon request.
(4) Financial and commercial agreements concluded between the
transmission system operator and the vertically integrated electricity company
shall be subject to the preliminary approval of the Office. The financial and
commercial agreement shall be submitted to the Office by the transmission
system operator. The Office shall approve the agreement if the transmission
system operator has proved that the content of the agreement meets at least
the market conditions.
(5) The transmission system operator must distinguish itself from the
vertically integrated electricity company in terms of image, communication and
branding, as well as at its registered seat and establishments.
(6) The transmission system operator shall not conclude agreements on
information technology systems or apparatuses or security access systems
with the advisors or suppliers of the vertically integrated electricity company,
shall not share information technology systems or apparatuses, or premises or
buildings necessary for performing its activities, or security access systems
with the vertically integrated electricity company, and shall not employ the
auditor of the vertically integrated electricity company for auditing.
VET Article 102/D (1) The transmission system operator shall be entitled to
decide, without prejudice to the resolutions of its supervisory board,
(a) on the equipment necessary for the operation, maintenance and
improvement of the transmission network, autonomously and independently
from the vertically integrated electricity company, and
(b) on borrowings, capital increases and any other sources of financing.
(2) The vertically integrated electricity company shall not determine the
conduct of the transmission system operator in respect of its daily activities,
network operation and the preparation of the network development plan either
directly or indirectly.
(3) The general management structure and statutes, internal codes and
agreements of the transmission system operator shall be set up in such a way
as to ensure the actual independence of the transmission system operator in
accordance with the provisions of this Act.
(4) At the request of the transmission system operator the vertically
integrated electricity company shall provide the financial resources for the
implementation of future investments and for the replacement of equipment in
due time. During the fulfilment of the abovementioned obligation, derogations
from the decisions made by the supervisory board to the detriment of the
transmission system operator shall not be permitted. The transmission system
operator shall inform the Office about the abovementioned resources.
(5) The vertically integrated electricity company shall refrain from any activity
which hinders the transmission system operator in fulfilling its obligations
arising from the provisions of this Act, and shall not require the transmission

system operator to request permission from the vertically integrated electricity


company to fulfil such obligations.
(6) The transmission system operator shall be entitled to decide on using
supporting activities and on outsourcing freely, and independently from the
vertically integrated electricity company.
VET Article 102/E (1) The transmission system operator shall prepare a
compliance program, shall submit it to the Office for approval, and shall
implement the approved compliance program. The compliance program shall
contain those measures and conditions which ensure non-discriminatory and
independent operation. The implementation of the compliance program of the
transmission system operator shall be checked, without prejudice to the
competence of the Office, by an independent compliance inspector appointed
by the supervisory board.
(2) The determination of the conditions and duration of the term of office or
employment of the compliance inspector shall be subject to the preliminary
approval of the Office. The transmission system operator shall ensure the
independence of the compliance inspector and the resources necessary for the
performance of his duties. The Office may refuse approval only if the
requirements as to the independence or professional competence of the
compliance inspector are not met.
(3) The compliance inspector shall be a legal entity or a natural person
without criminal records, and the provisions of Article 102/A(3), Article
102/A(4)(a), Article 102/A(6) and (7), and Article 102/B(1) and (2) shall apply to
him as appropriate.
(4) The supervisory board shall be entitled to terminate the term of office of
the compliance inspector only with the preliminary approval of the Office. The
supervisory board shall terminate the term of office of the compliance
inspector with immediate effect if the Office finds that the requirements as to
the independence or professional competence of the compliance inspector are
not met.
(5) In order to perform his duties set forth in this Act, the compliance
inspector may have access to any relevant data, may enter the offices of the
transmission system operator without prior notice, and may have access to
any other necessary information. In order to perform his duties set forth in this
Act and in the Vhr., the compliance inspector may manage the personal data of
the persons employed by the transmission system operator in accordance with
Article 151(1a) and legal acts on data protection.
(6) The compliance inspector shall prepare an annual compliance report on
the implementation of the compliance program, on the measures taken for the
purpose of implementation, on the results discovered and on any significant
deficiencies found during the implementation of the compliance program, and
shall submit it to the Office for approval. Following the approval the
transmission system operator shall publish the compliance report on its
homepage.
Rules of Separation pertaining to Vertically Integrated Electricity Companies
where a Member is a Transmission System Operator
Vhr. Article 99 (1) The rules on the rights and obligations, wages, other benefits or
remunerations, the conditions of work, competences and reporting obligations, and
the rules of terminating the employment relationship of an operational manager of the

transmission system operator, as well as information on the fact that the operational
manager may initiate an official investigation with the Office in the case of the early
termination of the employment relationship, not affecting his right to seek legal
remedy, shall be laid down in the employment contract.
(2) The authorised body of the transmission system operator shall make a proposal
to the supervisory board in respect of the annual business plan and the extent of
indebtedness. If the supervisory board does not approve the proposal on the annual
business plan and on the extent of indebtedness, the compliance inspector shall
inform the Office about the refusal or modification, as well as the reasons and
circumstances thereof.
Vhr. Article 99/A (1) In addition to the elements referred to in Article 94(3), the
compliance program of the transmission system operator shall contain the following:
(a) measures which ensure the independence of the operational managers and the
persons employed by the transmission system operator;
(b) the rules of procedure for service provision and commercial and financial
relations between the transmission system operator and the other members of the
vertically integrated electricity company;
(c) the rules of procedure for the procurement of information technology systems
and apparatuses, and advisory services relating thereto, which shall ensure that the
transmission system operator does not conclude agreements with advisors and
suppliers of the other members of the vertically integrated electricity company;
(d) provisions pertaining to the selection of an auditor who shall not be the auditor
of any of the other members of the vertically integrated electricity company, and
(e) the elements and means of remuneration for the members of the supervisory
board, and the possible reasons for dismissal from the supervisory board.
(2) In the case of transmission system operators the compliance report shall cover,
in addition to the elements referred to in Article 95(3), compliance with the provisions
of paragraph (1).
(3) In its statement referred to in Article 97(1) the transmission system operator
shall declare whether it has direct or indirect shares in any subsidiaries of the
vertically integrated electricity company which are engaged in production or trade.
Vhr. Article 99/B (1) The compliance inspector
(a) shall monitor and check the implementation of the compliance program;
(b) shall report his activity to the supervisory board, and shall prepare a
recommendation on the compliance program for the following calendar year, and on
the implementation thereof;
(c) shall, if the supervisory board does not approve the proposal on the annual
business plan of the transmission system operator and on the extent of
indebtedness, inform the Office in accordance with Article 99(2) about the refusal or
modification, as well as about the reasons and circumstances thereof;
(d) shall inform the Office about the commercial and financial relations between the
transmission system operator and the other members of the vertically integrated
electricity company;
(e) shall submit to the Office the proposal of the transmission system operator for a
resolution on an investment plan or individual investment concerning the
transmission network, no later than the date on which the proposal is submitted to the
supervisory board by the authorised body of the transmission system operator;
(f) shall inform the Office if, through its supreme body or through the vote of the
members appointed to the supervisory board, the vertically integrated electricity
company hinders the adoption of a resolution which results in a hindrance to or delay

in an investment scheduled to be implemented within three years according to the


network development plan;
(g) shall inform the Office quarterly in writing about the experiences gained during
the performance of his activities in respect of the implementation of the compliance
program, and may provide further information to the supervisory board in addition to
that under point (b);
(h) shall be entitled to participate in the meetings of the management board,
supreme body and other company bodies of the transmission system operator, with
the stipulation that he must participate in all meetings which deal with the following
topics:
(ha) conditions of access to the network referred to in Regulation (EC) No 714/2009
of the European Parliament and of the Council of 13 July 2009 on conditions for
access to the network for cross-border exchanges in electricity and repealing
Regulation (EC) No 1228/2003;
(hb) projects relating to the operation, maintenance and improvement of the
transmission network, including investments relating to connection, and
(hc) procurement of the capacities and electricity referred to in Article 20(2) of the
VET;
(i) shall arrange for the submission of the compliance report to the Office in
accordance with Article 95(1); and
(j) shall monitor the compliance of the transmission system operator with the
provisions of the VET and this Decree pertaining to secrecy.
(2) Compliance inspectors must
(a) have a masters or university degree
(aa) in economics,
(ab) in electronics engineering or
(ac) in law,
and must have passed the bar exam in case of a degree in law.
(b) have gained professional experience of at least 5 years
(ba) at a company engaged in activities covered by the VET, or in natural gas
industry activities or
(bb) in state administration in the field of energy, finance or economy,
(c) not have been the executive officer of an electricity company or its predecessor
any authorisation under Article 74(1) of the VET of which was withdrawn during the
ten years preceding the date of submission of the application for the preliminary
approval of appointment as a compliance inspector, and
(d) not have had their term of office terminated with immediate effect by another
party during the ten years preceding the date of submission of the application for the
preliminary approval of appointment as a compliance inspector.
(3) During his term of office the compliance inspector shall not be in an employment
relationship which can limit him in performing his duties.
(4) If the compliance inspector is a legal entity, at least one executive officer
thereof, and the manager directly responsible for the management of the inspection
activity, or at least one person performing direct inspection shall meet the criteria laid
down in paragraphs (2) and (3).
(5) The Office shall establish the absence of the professional competence of the
compliance inspector if within the scope of his duties the compliance inspector
provides data which are misleading or false in respect of the implementation and
inspection of the compliance program, or if the violation of his obligations laid down in
the VET or in this Decree is established by a final official resolution.

Rules pertaining to the Transmission System Operator in the Case of Ownership


Unbundling
VET Article 103 (1) The vertically integrated electricity company shall be
entitled to decide to implement the ownership unbundling of the transmission
system operator at any time. Following certification the transmission system
operator established as a result of ownership unbundling shall meet the
following criteria:
(a) the transmission system operator shall be in possession of the property
rights of the transmission network and of all equipment necessary for
transmission activities, as well as electronic communication network
components,
(b) the same person or persons shall not be entitled to
(ba) control companies engaged in production or trade in electricity either
directly or indirectly, and to control or exercise any right over the transmission
system operator or the transmission network either directly or indirectly, and
(bb) control the transmission system operator or the transmission network
either directly or indirectly, and to control or exercise any right over companies
engaged in production or trade in electricity either directly or indirectly,
(c) the same person shall not be entitled to appoint supervisory board
members or operational managers of the transmission system operator, and to
control or exercise any right over companies engaged in production or trade in
electricity either directly or indirectly,
(d) the same person shall not be an operational manager or supervisory
board member of a company engaged in production or trade in electricity, and
of the transmission system operator or of a company having shares in the
transmission system operator at the same time, and
(e) no company engaged in production or trade in electricity shall control or
exercise any right over the transmission system operator either directly or
indirectly.
(2) The term any right referred to in points (b), (c), and (e) of paragraph (1)
shall mean the following:
(a) exercising any right to vote,
(b) appointing supervisory board members or operational managers, or
(c) majority control under Article 685/B(1) of the Ptk.
(3) The conditions laid down in points (b), (c) and (d) of paragraph (1) shall
also be considered fulfilled if the transmission system operator or the
transmission network, and the authorised producer or the electricity trader are
both controlled by economic operators or other government bodies specified
by law on behalf of Hungary.
(4) Any business secrets which were in the possession of the transmission
system operator that constituted a part of the vertically integrated electricity
company shall not be disclosed by the transmission system operator to a
company engaged in production or trade in electricity, and a company engaged
in production or trade in electricity shall not employ persons employed by the
transmission system operator, as specified in Article 102/A(6) and (7), during
the period of their employment relationship and for 4 years after the
termination thereof, and shall not employ other persons employed by the
transmission system operator during the period of their employment
relationship and for 1 year after the termination thereof.

(4a) The owner of the electronic communication network components shall


conclude an agreement with the transmission system operator on the
electronic communication network components in accordance with the
provisions of the Vhr., taking into account point (a) of paragraph (1).
(5) If, as a result of the certification procedure, the Office finds that the
transmission system operator complies with the provisions of this Article, then
Article 99(1a) and (1b), Articles 102 to 102/E and Article 104 shall not be
applicable after the resolution of the Office becomes final.
(6) For the purposes of point (b) of paragraph (1)
(a) the provisions pertaining to companies engaged in production shall apply
to natural gas producers under the Get.,
(b) the provisions pertaining to companies engaged in trade in electricity
shall apply to authorised natural gas traders under the Get.,
(c) the provisions pertaining to the transmission system operator shall apply
to then transmission system operator under the Get., and
(d) the provisions pertaining to the transmission network shall apply to the
transmission system under the Get.
as appropriate, with the stipulation that the provisions of points (a) to (c) shall
also apply to the person or persons having direct control over the indicated
companies.
(7) For the purposes of point (b) of paragraph (1) the provisions pertaining to
companies engaged in production or trade in electricity shall not apply to
those companies engaged in production or trade in electricity which are, on an
annual average and including their share in the electricity produced by
electricity companies controlled by them, considered to be net users of
electricity, and whose turnover from electricity sales is insignificant as
compared to the turnover from their other business activities, regardless of
whether production or trade in electricity is performed directly or through
controlled companies.
Rules of Separation Pertaining to the Transmission System Manager
VET Article 104 (1) The transmission system manager shall meet the
following criteria:
(a) it shall fulfil the requirements set forth in points (b), (c) and (d) of Article
103(1);
(b) it shall be in possession of the financial resources, personnel, technical
equipment and assets necessary for performing its activities, including
electronic communication network components;
(c) it shall comply with the network development plan approved by the Office;
(d) it shall not use services rendered by third persons which are also
rendered by said third persons to the owner of the transmission network, with
the sole exception of administrative and information technology services, and
(e) it shall be able to fulfil the obligations set forth for transmission system
operators in Regulation (EC) No 714/2009.
(1a) The owner of the electronic communication network components shall
conclude an agreement with the transmission system manager on the
electronic communication network components in accordance with the
provisions of the Vhr., taking into account point (b) of paragraph (1).
(2) The owner of the transmission network shall

(a) provide the cooperation, support and information necessary for the
transmission system manager to fulfil its duties,
(b) finance the investments decided on by the transmission system manager
and approved by the Office, or shall give its consent to financing by any of the
interested parties, including the transmission system manager,
(c) provide coverage for obligations relating to transmission network assets,
except for obligations relating to the duties of the transmission system
manager,
(d) provide guarantees in order to facilitate the financing of transmission
network improvements, except for those investments in relation to which it has
given its consent in accordance with point (b) to financing by any of the
interested parties, including the transmission system manager, and
(e) make the transmission network owned by it and all equipment necessary
for transmission activities available for the exclusive use of the transmission
system manager.
(3) The financial agreements referred to in point (b) of paragraph (2) shall be
subject to the preliminary approval of the Office. The Office shall consult with
the owner of the transmission network and the other interested parties prior to
giving its approval.
(4) The owner of the transmission network shall not be responsible for
planning the developments referred to in Article 25 and for providing the
network access referred to in Article 35.
(5) Where the owner of the transmission network constitutes part of a
vertically integrated electricity company, it shall be independent from activities
other than transmission system operation in terms of legal personality,
organisation and decision-making pursuant to the following minimum criteria:
(a) operational managers of the owner of the transmission network shall not
participate in the body of the integrated electricity company which is
responsible, either directly or indirectly, for the daily operation of production,
distribution or electricity trading;
(b) the rights and obligations, wages and other benefits, working conditions
and professional interests of operational managers of the owner of the
transmission network shall be laid down in the employment contract in such a
way as to ensure the possibility to act independently during the performance of
their duties, and
(c) the owner of the transmission network shall prepare a compliance
program and a compliance report, to which the provisions of Article 101(1)(f)
and Article 101(2) to (4) shall apply as appropriate.
(6) The provisions pertaining to the transmission system operator as set out
in this Act and in legislation issued by virtue of the authorisation granted
therein shall apply to the transmission system manager, with the stipulation
that any reference to transmission system operator shall mean the
transmission system manager, except in respect of the provisions of Article
99(1a) and (1b), and Articles 102 to 102/E.
(7) If, as a result of the certification procedure, the Office finds that the
transmission system manager complies with the provisions of this Article, then
Articles 102 to 102/E shall not be applicable after the resolution of the Office
becomes final.
Rules of Separation Pertaining to the Owner of the Transmission Network if it is a
part of a Vertically Integrated Electricity Company

Vhr. Article 100 (1) The compliance program and the compliance report prepared
by the owner of the transmission network shall be governed by the provisions of
Article 94(1) to (2) and Articles 95 to 97, except for the provisions pertaining to the
members of the vertically integrated electricity company, with the stipulation that any
reference to authorised network operator shall mean the owner of the transmission
network.
(2) The compliance program prepared by the owner of the transmission network
shall contain the elements referred to in points 1 to 3, 5 to 6, 8 to 16 and 18 to 19 of
Article 94(3), with the stipulation that any reference to authorised network operator
shall mean the owner of the transmission network.
(3) The mandatory content elements of the compliance report referred to in Article
104(5)(c) of the VET shall be the following:
(a) presentation of litigation and other disputes relating to the separation of
activities and
(b) the elements referred to in Article 95(3)(a) to (g), with the stipulation that any
reference to authorised network operator shall mean the owner of the transmission
network.
(4) In the case of a transmission system manager, the owner of the transmission
network which is part of a vertically integrated electricity company shall comply with
Article 153(2) of the VET.
Agreement on Electronic Communication Network Components
Vhr. Article 100/A (1) The conclusion, modification or termination of the agreement
on electronic communication network components concluded between the
transmission system operator and the owner of the electronic communication network
components, as referred to in Article 102/B(4), Article 103(4a), and Article 104(1a) of
the VET (for the purposes of Articles 100/A to 100/C hereinafter jointly referred to as:
agreement) shall be subject to the approval of the Office.
(2) During the approval procedure referred to in paragraph (1) the Office shall
examine the compliance of the content, modification or termination of the agreement
with statutory requirements pertaining to the uninterrupted and safe operation of the
electricity system, and to the uninterrupted and secure supply of electricity.
(3) The agreement shall contain at least the following:
(a) the definition of the electronic communication network components necessary
for transmission system operation and provided for the exclusive use of the
transmission system operator, as well as the conditions and deadline of making them
available for use;
(b) the qualitative characteristics of the electronic communication network
components in accordance with the Operating Code;
(c) the amount of the fee payable for the use of the equipment referred to in
point (a), the conditions of payment, and provisions for the method and frequency of
the revision of such fees;
(d) the validity period of the agreement and cases of termination;
(e) the detailed rules of the obligations of the owner of the electronic
communication network components in relation to
(ea) the maintenance, in accordance with the Operating Code, of the electronic
communication network components in a condition as required for transmission
system control,
(eb) the checking of the availability of the electronic communication connection,

(ec) the operation, maintenance and improvement of the electronic communication


network components;
(f) the obligations of the transmission system operator in relation to
(fa) terminal equipment which can be connected to the electronic communication
network components,
(fb) the initiation of the capacity improvement of electronic communication network
components necessary for uninterrupted and safe transmission system control, and
(fc) cooperation with the owner of the electronic communication network components;
(g) mutual data provision obligations in relation to operation, maintenance and
improvement;
(h) stipulation of the right of pre-emption for the transmission system operator in
respect of electronic communication network components;
(i) stipulation of the right to purchase for the transmission system operator in
respect of electronic communication network components if the owner of the
electronic communication network components is wound up without a successor;
(j) provisions on data protection; and
(k) cases of breach of contract and their consequences.
(4) The transmission system operator shall be eligible for the following without the
need for a modification of the amount of the access fee:
(a) exclusive use of the electronic communication network components,
(b) determination of the circuits actually used in the electronic communication
network components,
(c) increasing and decreasing the number of circuits used by it in the electronic
communication network components according to the current needs of transmission
system control, and
(d) taking measures relating to the reconfiguration, dismantling and network
management of electronic network components in order to fulfil the needs of
transmission system control.
Vhr. Article 100/B The transmission system operator and the owner of the
electronic communication network components may terminate the agreement with a
period of notice of at least 12 months.
Vhr. Article 100/C In the case of a breach of contract by the transmission system
operator only that part of the services rendered by the owner of the electronic
communication network components under the agreement may be suspended which
exceeds the extent necessary for safe transmission system control, and such
suspension may be effected only upon the approval of the Office, until the
termination of the breaching conduct of the transmission system operator.
Unbundling of Accounts
VET Article 105 (1) The reporting and accounting obligations of electricity
companies, the compilation of reports, accounting, as well as disclosure and
publication shall be governed by the provisions of the Szt. subject to the
derogations set out in this Act.
(2) Integrated electricity companies and companies holding multiple
authorisations shall adopt rules for the unbundling of their accounts, and shall
keep separate records for each of their activities, in a manner that ensures the
transparency of the individual activities and non-discrimination, and precludes
cross-financing and distortion of competition.
(3) Horizontally integrated electricity companies shall demonstrate in the
notes to their annual accounts their authorised activity as they would be

required to do if the activities in question were carried out by separate


companies; the separate account of the authorised activity shall include at
least a separate balance sheet and a separate profit and loss account.
Electricity companies holding multiple authorisations shall demonstrate in the
notes to their annual accounts each of their authorised activities as they would
be required to do if the activities in question were carried out by separate
companies; the separate account of the authorised activities shall include at
least a separate account of assets and liabilities, accrued and deferred assets,
accrued and deferred liabilities and a profit and loss account for each activity.
(4) Vertically integrated electricity companies which are required to submit
consolidated annual accounts according to the Szt. shall demonstrate in the
notes to the consolidated annual accounts each of their authorised activities
separately. The separate account of the authorised activities shall include a
consolidated balance sheet and a consolidated profit and loss account.
(5) Electricity companies shall provide access for the officers of the Office to
their financial and accounting statements, and all related documents and
information, and shall provide facilities for them to inspect such statements,
documents and information. The Office shall specify the proceeding in
connection with which the information is required.
(6) In order to ensure the monitoring of compliance with the provisions of
Article 66(4) to (5) the provisions of paragraphs (2) and (5) shall apply as
appropriate to the operators of private lines that were established before 1
October 2011 and are not subject to authorisation.
VET Article 105/A (1) The auditor of an integrated electricity company or an
electricity company holding multiple authorisations shall in the independent
audit report issued to the companys annual accounts or consolidated annual
accounts certify that the rules the company has set up and adopted in
connection with the requirement of unbundling of accounts, and the pricing of
transactions between the various activities contain effective facilities to avoid
cross-financing between the various divisions of the company.
(2) Every authorised electricity company with the exception of holders of a
combined micro power plant authorisation shall be required to submit their
audited annual accounts together with the business report for the reference
year, and with the auditors report attached, to the Office at the time when
depositing them in accordance with the Szt.
(3) Electricity companies holding multiple authorisations shall be required to
submit their annual accounts, with the activity reports enclosed, to the Office
in a single copy. In this case the electricity company shall state the activities to
which the annual accounts submitted pertain.
(4) Vertically integrated electricity companies shall submit their consolidated
annual accounts to the Office through the member that is required to submit
such consolidated accounts.
Unbundling of Accounts
Vhr. Article 101 Horizontally integrated electricity companies, if no more than 1% of
their annual turnover derives from activities which are not subject to authorisation
under the VET, shall not be required to prepare a separate balance sheet and profit
and loss account for such activities. If the abovementioned turnover exceeds 1%, the
incomes and expenses from activities which are not subject to authorisation under

the VET, and the assets relating to such activities shall be presented in detail in the
notes to the annual accounts.
Vhr. Article 102 (1) Vertically integrated electricity companies which are required to
submit consolidated annual accounts according to the Szt. shall demonstrate in the
notes to their consolidated annual accounts each of the activities subject to
authorisation under the VET and performed in the framework of a company required
to submit consolidated annual accounts separately.
(2) The separate demonstration shall include at least a separate balance sheet and
a separate profit and loss account.
Vhr. Article 103 (1) If a provider of universal services also holds an electricity
trading licence, it shall submit the detailed rules it has drafted for the separate
accounting and recording of electricity to be purchased as a provider of universal
services and as an electricity trader to Office for preliminary approval.
(2) Horizontally and vertically integrated electricity companies required to
demonstrate authorised activities separately shall give a written explanation for the
background of data indicated in the separate balance sheet and profit and loss
account.
(3) The authorised operator shall obtain and provide information for the Office, to
the extent required for the latter to fulfil its functions, on the expenses and costs of
any supporting and outsourced activates performed by others.
Vhr. Article 103/A The detailed rules of unbundling of accounts shall be contained
in Annex 20.
Chapter XIII
PROMOTING COMPETITION ON THE ELECTRICITY MARKET
VET Article 106
VET Article 107 (1) With a view to promoting effective market competition,
avoiding any abuse of a dominant position and protecting the interests of
users, the Office shall conduct a market analysis:
1. on the wholesale electricity markets,
2. on the retail electricity markets,
3. on the markets for capacity and energy required to ensure ancillary
services.
(2) If competition on any market identified is not sufficiently effective based
on the findings of the market analysis, the Office may identify the authorised
operator as one with significant market power if it has a dominant position on a
relevant market alone or together with another market participant, i.e. a
position of economic strength affording it the power to act to an appreciable
extent independently of competitors and users.
(3) In the process of the identification of operators with significant market
power the Office shall take into consideration:
(a) the presence of an authorised operator in the geographical area of a
particular market and on the closely related markets, where the links between
the two markets are such as to allow the market power held on one market to
be leveraged onto the other market, thereby strengthening the market power of
the authorised operator in question,
(b) the size of the authorised operator and its market share on the given
market;

(c) the scope of activities of the authorised operator and of the companies it
controls according to Act LVII of 1996 on the Prohibition of Unfair and
Restrictive Market Practices, and that of the company exercising control over
the authorised operator, and the companies controlled by the company
exercising control over the authorised operator, vertical integration and the
unique characteristics of identified markets in terms of links, product
diversification, and the scope of goods and services offered in packages,
(d) the existence of barriers to market entry, growth and expansion,
(e) lack or low level of countervailing buying power,
(f) lack of potential competition,
(g) economies of scale and activity,
(h) relation between demand and supply.
(4) Additional regulations concerning the definition of the geographical area
of markets, for the analysis of effective competition, for the identification of
authorised operators with significant market power on markets where there is
no effective competition and the content of the obligations referred to in
Articles 110 to 111 and the conditions for their application shall be laid down in
specific other legislation.
(5) For the purposes of this Chapter:
(a) wholesale trade in electricity shall mean trade within the framework of
which electricity is not sold directly to users,
(b) retail trade in electricity shall mean trade within the framework of which
electricity is sold directly to users,
(c) market for capacity and energy required to ensure ancillary services
shall mean trade within the framework of which capacity and electricity is sold
directly to the transmission system operator.
VET Article 108 The Office shall impose a justified and proportionate
obligation or obligations upon the authorised operator that was identified by
the Office as having significant market power from among the obligations
specified under Articles 110 to 111 and in specific other legislation with a view
to promoting effective and sustainable competition on the relevant market and
to protecting the interests of users.
VET Article 109 (1) The Office shall carry out a repeated market analysis on
relevant markets as necessary, but no later than within three years from the
conclusion of the previous market analysis.
(2) If the Office learns about any circumstance of significant importance in
connection with the evaluation of competition on a relevant market, it shall
carry out the market analysis without delay.
(3) A market analysis may be requested by any operator authorised to
operate on the relevant market, if the conditions of competition on the relevant
market have changed significantly and fundamentally since the last market
analysis, and if the last relevant resolution was adopted by the Office at least a
year ago.
(4) In the process of the evaluation of the request referred to in paragraph (3)
the Office shall weigh the necessity of a market analysis, and shall request the
opinion of the Hungarian Competition Authority on the matter.
VET Article 110 (1) The Office, to the extent required for the promotion of
effective and sustainable competition and the protection of user interests, may
impose upon authorised operators with significant market power on the
markets specified in Article 107(1):

(a) obligations to ensure transparency in relation to the publication of


specific information, in particular accounting information, technical
specifications, specific data of sales contracts, terms and conditions for the
provision of and access to services, and prices,
(b) with respect to the same type of transactions of the authorised operator,
the Office may impose obligations to provide equal treatment, such as, in
particular, to refrain from stipulating any major contract clause that is
considered discriminatory, including prices, payment deadlines, discriminatory
sales and purchase conditions and techniques, which have the capacity to
cause a competitive disadvantage to certain clients, and to exclude any
contract clause for rendering the conclusion of a contract conditional upon
undertaking any commitment which, due to its nature or with regard to the
usual contractual practice, does not form part of the subject of the contract,
(c) if the lack of effective competition means that the authorised operator
concerned might sustain prices at an excessively low or high level, the Office
may impose obligations relating to price limits or for cost-oriented pricing,
including obligations concerning the use of cost calculation and pricing
methodologies, as well as conditions relating to price controls. Where the
obligation to employ cost-oriented pricing is initiated and imposed, it shall be
defined based upon and in consideration of the authorised operators justified
expenses incurred in connection with operations and any investments, and in
such a way as to ensure a fair return on such investments. With the exception
of the obligation to make an offer under Article 111(5), the Office may not
impose obligations for price limits or cost-oriented pricing upon authorised
producers.
(2) In connection with the obligation referred to in point (c) of paragraph (1),
the authorised operator affected shall inform the Office, when so requested
and within the prescribed deadline, concerning data on the fulfilment of the
obligation specified in point (c) of paragraph (1).
VET Article 111 (1) The Office may order an authorised operator with
significant market power on the market referred to in Point 1 of Article 107(1) to
hold public auctions at specific intervals. The frequency of the auctions and
the quantity of capacity and energy to be sold shall be specified by the Office.
The Office may also provide for sales through the regulated electricity market.
(2) With a view to ensuring transparency, the Office shall require an
authorised operator with significant market power on the market referred to in
point 2 of Article 107(1) to draw up a reference offer, corresponding to the
breakdown and level of detail prescribed in the Offices resolution, showing,
among others, the service charges, forms of payment and, where applicable,
the administrative obligations applicable when switching from one service
provider to another. The authorised operator required to draw up a reference
offer shall be bound to that reference offer in the form it was published
containing the conditions specified by law, or by the Office on the basis of a
market analysis, during the term thereof and may not deviate from it even with
the consent of the other party.
(3) The Office may prohibit authorised operators with significant market
power on the markets referred to in points 1 and 2 of Article 107(1), with a view
to ensuring the achievement of the objective of the obligation prescribed in
accordance with Article 110(1)(c):

(a) from charging unduly high prices to the competitors of its affiliate as
specified in the Szt. to improve the market position of such affiliated company,
(b) from setting unduly low prices by which to inhibit the market entry of
competitors or restrict competition which are not based on a higher degree of
efficiency as compared to competitors,
(c) from showing undue preference to specific users, or
(d) from unreasonable bundling.
(4) If the authorised operator with significant market power on the market
referred to in point 1 or 2 of Article 107(1) is a member of a vertically integrated
electricity company, the Office may, in addition to the separation requirements
set out in Article 101, order the reorganisation of the internal structure of the
integrated electricity company with a view to abolishing any share held by the
authorised operator affected in the transmission system operator or in an
authorised distribution network operator.
(5) The Office shall impose the obligation to make an offer subject to costoriented pricing on an authorised operator with significant market power on
the market referred to in Point 3 of Article 107(1) for the eventuality when so
requested by the transmission system operator.
VET Article 112 (1) In connection with the market analysis specified in Article
107, the Office shall cooperate with the competition authority as regards
proceedings for the identification of authorised operators with significant
market power and for imposing obligations upon them, and shall proceed in
due consideration of the opinion reflecting the professional position of the
competition authority and shall inform the competition authority if deviating
from its opinion, along with the reasons indicated.
(2) In cooperation with the competition authority, the Office shall issue a
methodological guide in connection with the provisions of specific other
legislation referred to in Articles 107 to 111 and in Article 107(4) no later than 2
months before each market analysis. If the market analysis is to be repeated
upon the request referred to in Article 109(3), the Office may, in justified cases,
issue the methodological guide at the same time as commencing the market
analysis.
VET Article 113 (1) to (2)
(3) The provisions of the Act on the Code of Civil Procedure pertaining to
public administration lawsuits shall apply to court procedures launched for the
judicial review of an Office resolution concerning issues covered by this
Chapter subject to the derogations prescribed in this Act.
VET Article 114 (1) Statements of claim shall be submitted to the Office within
15 days of the delivery of the resolution. The claimant shall declare in the
statement whether it requests a hearing to be held.
(2) The Office shall forward the statement of claim, along with the file on the
case and the declaration provided for in Article 330(2) of the Code of Civil
Procedure, to the court within 5 days of the receipt of the statement of claim.
The Office shall declare in its declaration whether it requests a hearing to be
held.
(3) At the same as delivering the statement of claim, the court shall
(a)
(b) call upon the interested parties involved in the remedy procedure, in
respect of whom the Offices resolution contains a provision, to make a

statement within the deadline specified, and inform them of the possibility of
intervention.
Promoting competition on the electricity market
Vhr. Article 104 (1) The Office may identify market segments for products or
services within the markets specified in Article 107(1) of the VET. The Office shall
identify market segments for products and services, analyse the efficiency of market
competition, identify authorised operators with significant market power, and impose
obligations upon them in accordance with the relevant provisions of competition law
and with due consideration of the characteristics of the Hungarian electricity market.
(2) The Office shall analyse the efficiency of competition in specific and
geographically distinct market segments for products or services, characterized by
substitutability in terms of demand and supply, and shall assess the market power of
authorised operators.
(3) When identifying market segments for products or services the Office shall
consider the following:
(a) the possibilities and limits of purchasing and selling electricity, taking into
account the criteria laid down in Article 14(3) of Act LVII of 1996 on the Prohibition of
Unfair and Restrictive Market Practices (hereinafter referred to as: Tpvt.),
(b) network congestions, differences between the regulatory practices applied in the
various geographical areas,
(c) other factors affecting the homogeneity of the conditions of market competition.
Vhr. Article 105 During the process of analysing the efficiency of market
competition the Office shall consider the following:
(a) the market share of authorised operators operating in the market segments for
products or services identified within the markets referred to in points 1 and 2 of
Article 107(1) of the VET, in due observation of the provisions of Article 106(a)
pertaining to the assessment of the market power of authorised operators,
(b) the liquidity of the market segments for products or services, i.e. the quick
marketability and availability of goods and services at low costs,
(c) trends in the prices of goods and services sold in the market segments for
products or services, as well as the costs and pricing practices of companies on the
market, and
(d) the extent to which users switch between traders on the markets referred to in
point 2 of Article 107(1) of the VET, i.e. the proportion of the total number of switches
between traders in the period examined within the total number of contracts for the
purchase of electricity concluded with users.
Vhr. Article 106 During the process of identifying authorised operators with
significant market power the Office shall proceed as follows:
(a) during the assessment of the market power of an authorised operator, it shall
aggregate the market share of the authorised operator, the companies controlled by
the authorised operator under the Tpvt., the company controlling the authorised
operator, and the companies controlled by the company controlling the authorised
operator in respect of the same product markets, and shall give particular weight to
such market shares in respect of related markets,
(b) during the calculation of market shares it shall consider production or capacity
values, turnover and other economic indicators, or quantifiable features which are
fundamental to the quality of the relevant market, if justified by the characteristics of
the market segments for products or services; and

(c) if, due to the characteristics of the given market, two or more authorised
operators are able to coordinate their market conduct, the Office may identify these
two or more authorised operators as each having significant market power.
Vhr. Article 107 (1) In order to ensure the transparency necessary for promoting
market competition the Office may require authorised operators with significant
market power to publish in particular the following information at least on their
homepage:
(a) the quantity of contracted or owned power plant capacities, and of energy
purchased from the power plant, or sold from the power plant to the person
concerned, per power plant units or power plants,
(b) main technical and economic specifications of contracted or owned capacities,
the date of expiry of agreements for contracted capacities or sales per power plant
units or power plants,
(c) publication, following the day of sales, of available and sales quantities of blocks
concerned with a capacity exceeding 50 MW, and of contracted or owned power
plant capacities, broken down by days or, if possible, hours,
(d) notification of any scheduled maintenance, and the date of maintenance of
power plant units and power plants concerned at least two months before the initial
date of the scheduled preventive maintenance, immediate publication of other
shutdowns, as well as the identification and detailed presentation of the causes of
emergency outages and non-scheduled outages as soon as possible, and the
foreseeable duration of the outage,
(e) the extent of disposed cross-border capacities, and information on the rate of
utilisation of such capacities per cross-border intersections,
(f) the sample of the sales contract applied by the authorised operator with
significant market power in the given market segment, or the terms and conditions of
its sales contract, with particular reference to the period covered by the contract, the
rights and obligations of the contracting parties, as well as the substance and price of
products and services being the subject of the contract.
(2) On its homepage the Office shall publish the list of authorised operators
required to publish the abovementioned data, the obligations imposed upon the
authorised operators, and the addresses of the homepages of the authorised
operators.
(3) If the Office requires an authorised operator with significant market power to
publish the data referred to in paragraph (1), the authorised operator shall also
publish any change in the published data forthwith after the occurrence of such
changes.
Vhr. Article 108 In order to ensure equal treatment, the Office may require an
authorised operator with significant market power to submit its contracts for the
purchase or sales of electricity subject to the above obligation to the Office within 8
days after their conclusion. The Office shall assess whether the submitted contracts
meet the principle of equal treatment. If the Office finds that any contracts that have
not yet been performed are discriminatory, it shall require the authorised operator to
amend the contracts in question in such a way as to ensure compliance with the
principle of equal treatment. The Office may stipulate further requirements for the
authorised operator in respect of equal treatment, which the authorised operator shall
be obliged to apply when concluding contracts for the purchase or sales of electricity.
Vhr. Article 109 In case of imposing a price limit or the obligation to apply costoriented pricing, the justification of costs incurred in relation to the performance of the
authorised operators activities shall be assessed by the Office, and, on the basis of

economic and technical data requested from the authorised operator, benchmark
data, and market modelling, the Office shall establish the extent to which the costs
incurred can be recognised as justified costs. Fair return can be determined on the
basis of justified costs incurred in relation to the performance of the authorised
operators activities, and investments. A price limit may be applied in consideration of
justified costs, the fair return on justified costs and investments, and the market
prices expected on the market concerned.
Vhr. Article 110 (1) The Office may order an authorised operator with significant
market power on the market referred to in point 1 of Article 107(1) of the VET to hold
public capacity auctions at intervals determined within the framework of the obligation
of transparent sales, if
(a) the authorised operator covered by the scope of Article 106 of the VET fails to
fulfil its statutory obligations stipulated therein, or
(b) the authorised operator is not subject to the sales obligation referred to in Article
106 of the VET.
(2) In its resolution ordering a capacity auction, rendered until 30 June at the latest,
the Office shall determine the scope of products to be offered at the auction, as well
as the frequency of the capacity auction and the deadline until which it is to be held,
and shall require the authorised operator to
(a) notify the quantity and resource composition of the capacity to be offered at the
auction, and
(b) submit its code on conducting the auction
to the Office for approval.
(3) During the process of determining the quantity and resource composition of the
capacity to be offered at the auction the authorised operator shall proceed as follows:
(a) the quantity of the capacity to be sold at the auction shall not be less than the
quantity required for the market share of the authorised operator, not including the
auctioned capacities and the sales of electricity deriving therefrom, to fall below 40%,
(b) during the process of determining the resource composition of capacities to be
sold the authorised operator shall take proportionate account of portfolio elements to
implement the optimal merit order of its portfolio,
(c) the loss resulting from the capacity auction shall not provide legal basis for
applying for a state subsidy or compensation.
(4) The provisions of the auction code shall be determined in such a way as to
ensure that the conditions and procedure of the auction are clear for every
participant, that the winning bid is selected under clear conditions, and that every
participant is provided the same opportunities. The quantity of products sold at the
auction and the price established as a result of the auction shall be published by the
authorised operator within 3 days after the closing of the auction.
(5) The Office shall either approve the quantity and resource composition of the
capacities to be sold at the auction as well as the auction code, make their approval
subject to certain conditions, or refuse approval.
(6) In its resolution the Office shall set the deadline for the fulfilment of the
obligations imposed on the authorised operator in such a way as to provide
reasonable time for the authorised operator to prepare the documentation to be
submitted for approval, and, if the resolution makes approval subject to certain
conditions or rejects the approval, to modify the documentation, and to ensure that
the auction can be held no later than the date specified in the resolution. The time
limit stipulated by the Office for the fulfilment of the obligations referred to in
paragraph (2) shall be at least 30 days.

(7) The authorised operator referred to in paragraph (1) shall without any further
resolution of the Office sell its capacities at public capacity auctions until the Office
renders a resolution on the basis of a new market analysis under Article 109 of the
VET, according to which the authorised operator is no longer considered as one with
significant market power.
Vhr. Article 111 The Office may require an authorised operator with significant
market power on the retail markets to publish the terms and conditions of the
contracts for the service packages sold to users eligible for universal service on its
homepage and in its standard service agreement according to the breakdown and at
the level of detail required by the resolution of the Office. The published contractual
terms and conditions shall be binding for the authorised operator in respect of every
user eligible for universal service, and it may not derogate from such terms and
conditions in respect of any of the service packages.
Vhr. Article 112 The justification of the costs applied in the offer by the authorised
operator with significant market power on the market of capacities and energy
purchased for the purpose of ensuring ancillary services shall be assessed by the
Office, and, on the basis of economic and technical data requested from the
authorised operator, benchmark data, and market modelling, the Office shall
establish the extent to which the costs incurred can be recognised as justified costs.
During the process of assessing the justification of costs, the Office shall consider the
direct costs clearly relating to the service offered, the justified application of costs
relating to the service offered, and fair returns.
Chapter XIV
AUTHORISATION PROCEDURES CONCERNING THE CONSTRUCTION OF
ELECTRICAL INSTALLATIONS AND FACILITIES
VET Article 115 For the purposes of this Act, authorisation procedures
conducted by the building authority shall be the following:
(a) building permit procedure,
(b) operating permit procedure,
(c) occupancy permit procedure,
(d) continuation permit procedure,
(e) decommissioning proceedings.
VET Article 116 (1) The construction, operation, commissioning, continuation
and decommissioning of electrical installations, production lines, private lines
and direct lines shall require the authorisation of the building authority as the
authority permitting the construction of special building types (hereinafter
referred to as: Authority), as prescribed in this Act.
(2) As regards the authorisation procedures specified in Article 115, the
Authority may conduct simplified authorisation procedures in the cases
defined in specific other legislation.
(3) The Authoritys permit under Article 115 shall not be required
(a) for the construction of a household micro power plant,
(b) for the construction of a micro power plant with a nominal generation
capacity of 0.5 MW or less, if it is not connected to an electrical installation,
(c) for private lines, if they are located within a single building in their
entirety,

(d) for low-voltage interconnectors, if they are built exclusively on real estates
the owner of which has given its consent to the construction.
VET 117 Article (1)
(2) The administrative time limit for the Authoritys proceedings shall be two
months.
(3) In the building authoritys authorisation procedures the registered owners
of the real estate properties affected by any electrical installations, production
lines, private lines or direct lines, or by their safety zones shall be recognized
as parties to the proceedings.
(4) Prior to the commencement of the authorisation procedure the applicant
or his representative may request a preliminary position statement from the
competent authority. During the authorisation procedure the Authority shall
approve the preliminary position statement of the competent authority if it is
not older than 1 year, and if one original of the engineering plan documentation
bearing the original date, signature and seal of the competent authority is
submitted to the Authority at the opening of the authorisation procedure.
(5) The entitlement or obligation laid down in an official resolution concerning
the construction, operation, commissioning, continuation or decommissioning
of an electrical installation, production line, private line or direct line may in
justified cases be revised within a period of two years from the date of
delivery of the resolution upon request or ex officio.
(6) The building permit for an electrical installation, production line, private
line or direct line shall be repealed if the authorised operator fails to build the
structures within two years after the date on which the building permit
becomes final, or if it definitively removes the abovementioned structures. The
Authority may extend the validity period of a building permit for an electrical
installation, production line, private line or direct line upon the authorised
operators request if submitted before it expires, in the manner specified in
specific other legislation once by a maximum of two years, if the permit
complies with the statutory provisions in force on the date of extension.
(7) The repeal of the building permit issued for the construction of an
electrical installation, production line, private line or direct line shall entail the
termination of the cable right established by the official resolution.
Article 117/A In the case of legal succession the holder of the permit issued
for the construction of an electrical installation, production line, private line or
direct line shall be replaced by the legal successor of the holder. The legal
successor shall inform the authority within 30 days after the occurrence of
such change by sending it a copy of the final resolution on company court
registration. The holder of the permit shall also inform the Authority, in
accordance with the rules of legal succession, in the event of any change in its
name.
VET Article 118 Electrical installations, production lines, private lines and
direct lines may converge on and cross other utility lines, rivers, waterways,
lakes, canals, and built structures in the manner decreed by the Minister jointly
with the minister in charge of transportation, the minister in charge of water
management policies, the minister in charge of regional development and the
minister in charge land use planning.
VET Article 119 (1) At the request of the network user or the person whose
rights or legitimate interests are affected by the construction of a public utility
system, the supporting structures of the public utility system, the

interconnector or the connection point (for the purposes of this Article


hereinafter referred to as: other interested party) the authorised network
operator shall relocate or modify the interconnector or the connection point if
(a) if the relocation or modification does not violate the legitimate interests of
any other network user,
(b) it is not of significant detriment to the operation of the public utility
system,
(c) the technical conditions are given and
(d) the network user or the other interested party if the relocation or
modification is requested by the other interested party undertakes to bear the
costs arising in relation to the relocation or modification.
(2) In the case of relocation or modification under paragraph (1) the building
permit procedures for the public utility system shall apply.
(3) During the modification or relocation under paragraph (1) of network
components owned by the authorised network operator the network
component replacing the previous network component, the costs of the
establishment of which are borne by the network user or the other interested
party, shall remain part of the public utility system owned by the authorised
network operator without any extra charge, subject to the exception set forth in
paragraph (4).
(4) If the modification or relocation referred to in paragraph (1) is financed by
a subsystem of the general government or by European Union funds or other,
similar international funds, and the authorised network operator is not
permitted to acquire any holding pursuant to the laws on subsidies, the costs
of dismantling and the book value of the dismantled network as at the date of
dismantling shall be reimbursed by the investor of the new network component
to the authorised network operator within 30 days after the completion of
dismantling at the latest.
(5) In the case referred to in paragraph (4) the investor of the network
component shall make the network component available for use by the
authorised network operator, which shall be obliged to operate the network
component at its own costs. Within 30 days after the expiry of the prohibition
of disposal, the investor of the network component shall sell the network
component to the authorised network operator at a price corresponding to the
net book value of the network component reduced by the share of subsidy.
BUILDING PERMIT PROCEDURES FOR STRUCTURES ON OWN PROPERTY

VET Article 120 Electrical installations, production lines, private lines and
direct lines may be constructed on ones own property if in possession of a
building permit issued by the Authority, subject to the exceptions set forth in
this Act.
BUILDING PERMIT PROCEDURES FOR STRUCTURES ON THIRD-PARTY
PROPERTY

Construction of Public Utility Systems on Third-Party Properties

VET Article 121 (1) In connection with the construction of a public utility
system on a third-party property the authorised network operator may apply
for:
(a) a right to perform preparatory work,
(b) cable rights,
(c) use rights.
(d)
(2) In the course of exercising the rights under paragraph (1), the authorised
operator shall compensate the owner or user (hereinafter referred to
collectively as: owner) of the real estate for any damage caused by:
(a) placing markings, taking measurements and conducting tests,
(b) constructing facilities, or accessing or using such facilities for the
performance of work,
(c) obstructing or limiting the use of the property.
(3) In order to construct the production line of a power plant with a nominal
generating capacity of 50 MW or more, or of a power plant using renewable
energy sources on third-party property the main contractor may apply for
(a) a right to perform preparatory work,
(b) cable rights.
Right to Perform Preparatory Work
VET Article 122 (1) An authorised network operator may submit an application
for the right to perform preparatory work in connection with the construction of
a public utility system.
(2) On the basis of the right to perform preparatory work, the owner of the
property shall allow the required markings to be placed out, soil tests to be
conducted and measurements to be taken on his property. The owner of the
property must be notified of the plans prior to the commencement of work.
Cable Rights
VET Article 123 (1) The trail of the public utility system shall be designated
and planned in such a way as to ensure that it crosses public areas if possible,
and that it affects arable lands or other non-publicly owned properties to the
least extent possible.
(2) Low-voltage interconnectors constituting a part of the public utility
system may also be constructed on the basis of the consent of the owner of
the property intended to be used for construction. If the construction affects
arable land, the construction shall be subject to the resolution of the real estate
authority permitting the use of arable land for other purposes.
(3) The Authority may grant cable rights to the benefit of the authorised
network operator for the construction of a public utility system on a third-party
property if deemed necessary to make the necessary improvements on the
public utility system, provided that such construction work does not
significantly obstruct normal use of the property.
(4) The consent of the owner of the property intended to be used for the
construction of a low-voltage interconnector shall establish rights and
obligations to be registered in the real estate register pursuant to Article
16(e) of Act CXLI of 1997 on Real Estate Registration identical to the rights

and obligations arising from cable rights under this Act. The consent of the
owner shall not be withdrawn.
(5) In the case of a property owned by a network user the claim for network
connection submitted by the network user to the authorised network operator
shall be considered as consent to the construction of the interconnector.
VET Article 124 (1) On the basis of the cable rights, an authorised network
operator may:
(a) install underground and overhead cables and telecommunications
connections thereto,
(b) construct supporting structures and install transformer and switching
equipment thereon,
(c) install distribution equipment on fixtures other than supporting structures,
as well as transformer and switching equipment specified in specific other
legislation,
(d) remove vegetation that impinges on the security zone during construction
on third-party property.
(2) The authorised network operator who is in possession of the cable right
or final operating permit shall have the right to operate, maintain, repair,
remodel and renovate the structures to which the permit pertains, and to
remove any vegetation that impinges on the safety zone of the public utility
system, production line, private line or direct line, and shall be entitled to enter
the property covered by the cable right in order to carry out the activities listed
above.
Vhr. Article 112/A
VET Article 125 (1) The Authority shall send a copy of its final resolution to
the real estate authority for the registration of cable rights in the real estate
register. Where cable rights are limited to certain sections of the property only,
a diagrammatic plan showing the property section affected and containing the
seal of approval of the real estate authority shall be enclosed as well. Cable
rights may also be exercised prior to registration, based on the final resolution.
(2)
VET Article 126 (1) The authorised operator shall notify the Authority
concerning the termination of cable rights within 30 days, or failing this the
Authority shall declare them terminated by way of a resolution at the owners
request, or ex officio if gaining knowledge otherwise.
(2)
(3) When cable rights are terminated, the Authority shall send a copy of its
final resolution declaring the cable rights terminated to the real estate authority
to have the cable rights deleted from the real estate register.
Right of Use
VET Article 127 (1) The authorised network operator may apply to the
Authority for a building permit concerning the construction of transformer and
switching equipment defined in specific other legislation and comprising part
of the public utility system on third-party property on fixtures other than
supporting structures if in possession of the right of use.
(2) A right of use shall be established by an agreement with the owner of the
third-party property to which it pertains. Other aspects of the establishment of
the right of use shall be governed by the relevant provisions of the Civil Code.

(3) When, in the absence of an agreement, a right of use cannot be


established, the authorised network operator may request the Authority to
grant the right of use on the property. The Authority may grant the right of use
if it is deemed justified for the improvement of the public utility system and if it
does not significantly obstruct normal use of the property.
VET Article 128 (1) Registration of a contracted right of use in the real estate
register shall be requested by the authorised network operator based on the
relevant agreement. Where the right of use is conferred by resolution, the
Authority shall send a copy of its final resolution to the real estate authority for
registration of the right of use in the real estate register. Where the right of use
is limited to certain sections of the property only, a diagrammatic plan showing
the property section affected and containing the seal of approval of the real
estate authority shall be enclosed with the request or the official resolution.
Any delay in the registration of a contracted right of use shall have no effect on
the enforceability of the right. A right of use conferred by official resolution
may also be exercised prior to registration, under the final administrative
decision.
(2) The right of use conferred under official resolution shall be due to the
authorised operator; the authorised operator shall notify the Authority of any
changes in its name and in the event of succession or any change in the
person of the authorised operator within 30 days from the effective date of the
change.
VET Article 129 (1) The right of use shall terminate save where
paragraph (2) applies if the authorised network operator fails to construct, or
removes entirely, the transformer and switching equipment on or from the
property covered by the right of use within two years from the date when the
right was granted. The right of use shall also terminate upon an agreement of
the parties to this end. With the exception of contracted rights of use, the
authorised operator shall notify the Authority concerning the termination of the
right of use within 30 days, or failing this the Authority shall declare them
terminated by way of a resolution at the owners request, or ex officio if gaining
knowledge otherwise.
(2) The Authority may extend the validity period of the building permit upon
the authorised network operators request if submitted before it expires, in the
cases defined in specific other legislation by maximum two additional years, if
the authorisation is in compliance with the statutory provision in force at the
time of the extension.
(3) Cancellation of a contracted right of use from the real estate register shall
be requested by the authorised operator at the same time as submitting the
relevant agreement. Where the right of use is conferred by resolution, the
Authority shall send a copy of its final resolution declaring the right of use
terminated to the real estate authority for cancellation of the right of use from
the real estate register.
VET Article 130
Construction of Power Plants on Third-Party Properties
VET Article 131 (1) The main contractor may apply to the Authority for a
building permit for the construction of a power plant on a third-party property if
able to verify his eligibility for construction on the property as being the

proposed site of the power plant in the form of documentary evidence defined
in specific other legislation.
(2) Pursuant to specific other legislation, an authorised producer or main
contractor may apply for easement rights to construct and operate overhead
conveyor facilities for a power plant (suspension rails, cable tracks) and
supporting structures thereof on a third-party property, as well as for the
construction and operation of direct lines and conveyor belts and other
facilities to transport primary energy sources and hydrocarbons from the mine
or hydrocarbon field site, and from the renewable energy sources to the
authorised producer.
(3)
Construction of Production Lines, Private Lines and Direct Lines on Third-Party
Properties
VET Article 132 (1) The Authority may grant rights to perform preparatory
work and cable rights to the benefit of the main contractor or the authorised
operator of the production line for the construction of production lines of
power plants with a capacity of more than 50 MW, and for power plants
generating electricity from renewable energy sources on a third-party property,
provided that such construction work does not significantly obstruct normal
use of the property. The main contractor or the authorised operator of such
production lines shall be subject to the rights and obligations set out in Article
122(2) in connection with the rights to perform preparatory work, and in
Articles 124 to 126 in connection with cable rights.
(2) The main contractor, or the authorised operator of a production line,
private line or direct line may apply to the Authority for a building permit for the
construction of private lines or direct lines other than those mentioned in
paragraph (1) on a third-party property under an agreement with the owner of
the third-party property in question concluded in accordance with the Civil
Code.
OPERATING PERMIT PROCEDURES
VET Article 133 (1) Public utility systems, production lines, private lines and
direct lines, and transformer and switching equipment set out in specific other
legislation and installed on supporting structures and other facilities may be
placed into service following the completion of construction and following the
conclusion of proceedings set out in specific other legislation relating to
technical safety requirements.
(2) The operator of the structures referred to in paragraph (1) shall apply to
the Authority for an operating permit within 90 days after having placed them
into service.
(3) The operator who is in possession of the final operating permit shall have
the right to operate, maintain, repair, remodel and renovate the structures to
which the permit pertains, and to remove any vegetation that impinges on the
safety zone of the public utility system, production line, private line or direct
line.
OCCUPANCY PERMIT PROCEDURES

VET Article 134 Authorised producers and authorised network operators shall
apply to the Authority for an occupancy permit within 90 days following
construction, respectively, of the power plant or the transformer and switching
equipment set out in specific other legislation for taking them into use.
CONTINUATION PERMIT PROCEDURES
VET Article 135 (1) The Authority may grant a continuation permit solely for
electrical installations, production lines, private lines or direct lines
constructed before the time of this Act entering into force in contradiction to
the relevant legal regulations, and solely if said equipment complies or can be
made compliant with the requirements applicable at the time of the
continuation permit procedure.
(2) If the main contractor or the person entitled to dispose of the property in
question refuses to provide for the demolition of any electrical installation,
production line, private line or direct line that was constructed after the entry
into force of this Act in contradiction to the relevant legal regulations, the
Authority shall order the demolition of the structure in question.
DECOMMISSIONING PROCEEDINGS
VET Article 136 (1) Decommissioning proceedings shall be opened at the
relevant partys request or ex officio.
(2) Decommissioning an electrical installation, production line, private line or
direct line may be carried out upon the authorisation or order of the Authority.
(3) In the event of the termination of the rights described in Article 121(1)(a) to
(c), the holder of the right to perform preparatory work and the holder of the
registered right shall be required to restore the original state of the property, or
failing this to restore the original cultivation profile of the land, or failing that to
provide compensation.
SAFETY ZONES
VET Article 137 In order to protect electrical installations, production lines,
private lines, direct lines, interconnectors and the surrounding environment, a
safety zone shall be designated. The extent of the safety zone, as well as any
bans and restrictions to be enforced in the safety zone, shall be laid down in
specific other legislation.
Chapter XV
DISTURBANCE IN THE SUPPLY OF ELECTRICITY
VET Article 138 (1) Any system failure that does not constitute an emergency
situation in the electricity supply system as specified in Article 139, and
involves an event, as specified in the Electricity Supply Codes, in the power
plants of the electricity system or in its public utility systems which
significantly restricts or stops electricity generation, generating capacity,
transmission, distribution, supply or use or seriously endangers the
operational safety, governance and cooperative capacity of the electricity

supply system shall be treated as a significant malfunction of the electricity


system.
(2) Irrespective of the rights and obligations stipulated in contracts
concluded by the network users, in the event of a significant malfunction of the
electricity system, they shall carry out the instructions of the transmission
system operator and the authorised distribution network operator, and bear the
relevant expenditures in a manner specified by specific other legislation.
VET Article 139 (1) An electricity supply emergency situation (hereinafter
referred to as: emergency) shall mean a malfunction in the electricity supply
system which does not qualify as a crisis or hazardous situation, as specified
in specific other legislation, but which has the capacity to directly endanger
human life, property, nature and the environment, or supply to a significant
percentage of users. The following events, in particular, may lead to
emergency situations:
(a) long-term shortage in the supply of electricity from power plants or from
cross-border imports,
(b) long-term shortage of primary energy sources,
(c) environmental pollution or malfunction of lines producing a shortage
lasting several days in the electricity supply of Hungary or part of Hungary,
(d) disturbances in the supply of users.
(2) In the event of an emergency the Government shall regulate the following
by decree for the duration of the emergency:
(a) the procedure for the suspension of contracts concluded for the supply of
users,
(b) cutting back the supply of electricity to users,
(c) rights and obligations of the authorised operators,
(d) the maximum price of all products and services, with either regulated or
non-regulated prices, relating to electricity supply.
(3) Authorised operators shall have no indemnification liability for losses
arising from the measures set forth in paragraph (2) above, provided that they
act in a way that can reasonably be expected of them.
(4) The measures set forth in paragraph (2) above shall be implemented in the
shortest possible time with minimal disturbance to the operation of the market.
Chapter XVI
PRICE REGULATIONS
VET Article 140 (1) Users shall be liable to pay the price of electricity
according to the terms and conditions set out in the contract for the purchase
of electricity, and the charges payable for the use of the electricity system
under Article 142 according to the terms and conditions set out in the network
use agreement.
(2) The charges payable for the use of the electricity system shall be fixed by
the Office in a resolution according to this Act and the ministerial decree
issued by virtue of the authorisation granted in this Act. The sales price of
electricity sold by electricity traders to users shall be fixed in the agreement
between the parties or in the electricity traders standard service agreement;
the price of electricity sold within the framework of universal services shall be
decreed by the Minister.

(3) If the electricity trader handles the network use agreement of a user in the
capacity of an agent in accordance with Article 63(1), and the charge to be paid
for the use of the electricity system is claimed by the electricity trader from the
user, the electricity trader shall indicate the rate relating to the contract for the
purchase of electricity separately, and shall indicate the charges payable for
the use of the electricity system clearly and separately, in the form of at least
two consolidated items, and, in the case of providers of universal services, in
accordance with the ministerial decree on the form of invoices applied by
providers of universal services.
(4)
(5) Authorised operators under this Act who are required to pay a special tax
in accordance with Act XCIV of 2010 on Special Taxes on Certain Sectors
(hereinafter referred to as: Special Taxes Act) shall not pass the special tax on
to authorised operators or users who have concluded a contract with them.
Consequently, such special tax shall not be included in the prices of products
or services rendered by the authorised operator in any way either directly or
indirectly, and shall not be billed separately. The obligation to pay such taxes
shall be borne by taxable persons under the Special Taxes Act individually.
VET 141 Article (1) to (2)
(3) Official prices may be determined on an individual basis, or under the
provisions pertaining to the calculation of official prices.
(4) Official prices shall be determined together with the relevant conditions
for their application, subject to the derogations set forth in Article 142(2) to (3)
and Article 144(1).
(5) Official prices shall be determined ex officio.
(6) During the process of determining official prices provision must be made
for the effective date of the official price as well, which may not be retroactive.
(7) In the event of any change in the maximum official price following the
conclusion of a contract, the new official price shall be automatically
incorporated into the contract, unless there is an agreement between the
parties to the contrary.
(8) Any price stipulated in the contract above the maximum official prices
shall be null and void. If the parties failed to agree on the price and the price of
the goods or services in question are fixed officially, the latter shall apply. The
official price shall also apply if the parties agreed upon a different price in a
violation of the Offices resolution or legislation setting the official price.
(9) For the purposes of this Chapter, the official price shall cover the network
access fee specified in Article 142(1), the network-related connection charges
specified in Article 144(1), the price charged by authorised distribution network
operators or providers of universal services for the services provided to
accommodate the needs of users under Article 142/B(1) and Article 143(6), and
the price of universal services under Article 143(3) to (3a).
VET Article 142 (1) Use of the electricity system shall be subject to:
(a) transmission system control fee,
(b) ancillary services fee,
(c) distribution fee,
(d) public lighting distribution fee
(hereinafter referred to collectively as: network access fees). The various
network access fees may comprise components consistent with the cost
structures on which the fee is based.

(2) The framework rules for the determination and regulation of network
access fees, and the general rules of the application of such fees shall be
decreed by the Minister based on the proposal of the Office.
(3) The amount of the network access fees for a given calendar year and the
special rules of the application of such fees shall be laid down by the Office in
a resolution. The Office shall publish its resolution on its homepage 30 days
before 1 January, the date on which the network access fees and the
conditions of application laid down therein enter into force.
(4) The rate of the network access fees and the conditions of application shall
be uniform throughout the country.
(5) Network access fees must be transparent, public and proportionate, and
their application must be objective and non-discriminatory.
(6) Network access fees shall be determined on the basis of the justified cost
of capital and operating expenses of an efficient authorised operator, as well
as comparative analyses, in accordance with the ministerial decree referred to
in paragraph (2), and in due observation of the principle of minimum cost in
such a way as to encourage the authorised operators concerned to intensify
the efficiency of their management, continuously improve the quality of their
services and enhance the security of supply in the short and long term.
VET Article 142/A (1) The network access fees shall be regulated in the
framework of four-year price regulation cycles by annual pricing. Prior to the
initial date of the price regulation cycle the Office shall carry out a cost
revision. The rules of the price regulation cycle shall be laid down by the
Minister in the decree referred to in Article 142(2) prior to the initial date of the
price regulation cycle.
(2) Proceeds from distribution fees and public lighting distribution fees shall
be distributed among authorised distribution network operators in proportion
to their justified and reasonable expenses. To this end, balancing payments
announced together with the network access fees shall be effected between
authorised operators where deemed necessary. The amount of balancing
payments shall be set by the Office in its resolution on network access fees.
(3) Authorised network operators shall apply and publish on their homepage
the network access fees and conditions of application set out in the Offices
resolution, taking the provisions of paragraph (6) into account.
(4) During the preparation of the ministerial decree referred to in Article
142(2) the Office shall request the representative organisations of authorised
operators and users to deliver their opinions. The Office shall publish its
presentation on the decree on its homepage until 15 May of the year preceding
the commencement of the four-year price regulation cycle, and shall submit its
presentation to the Minister for promulgation by decree.
(5) The Minister shall approve or refuse the Offices presentation within 30
days after the submission. If the presentation:
(a) is accepted, the Minister shall publish the framework rules for the
determination and regulation of the network access fees and the general
conditions of their application in a decree within 30 days of the date on which
the presentation of the Office was approved,
(b) is refused, the Minister shall publish his decision for refusal with
reasoning within 15 days following the date on which the decision was
adopted.

(6) The network access fees determined by the Office resolution shall be
construed as the maximum prices. Any derogation from the maximum price
downward shall be made in a way that is non-discriminatory, and in a manner
published in advance.
Article 142/B (1) The Minister shall issue a decree on
(a) the type of services that may be rendered by authorised distribution
network operators for an extra charge upon user demand in addition to the
basic services
(b) the type of services that may be rendered for an extra charge in case of a
breach of contract by the network user, and
(c) the type of services that may be rendered by authorised distribution
network operators to authorised operators for an extra charge
and fees for such services.
(2) During the drafting of the decree referred to in paragraph (1) the Minister
shall request the representative organisations of authorised operators and
users concerned to deliver their opinions.
(3) The Office shall monitor compliance with the provisions relating to
network access fees.
(4) By way of derogation from the general rules of the Szt., the margins fixed
in the resolution referred to in Article 142(3) generated on the basis of annual
pricing, due to the transmission system operator and to be recognised in the
fees of the following years shall be indicated in the balance sheet of the
annual report of the transmission system operator as prepayments and
accrued income. The margins to be withdrawn from the transmission system
operator in the fees of the following years, and the turnover form cross-border
auctions in the reference year shall be indicated in the balance sheet of the
annual report of the transmission system operator as accruals and deferred
income. For the purposes of Article 1(5) of Act LXXXI of 1996 on Corporate Tax
and Dividend Tax the report prepared in accordance with the provisions of this
paragraph shall be considered as having been prepared in due consideration
of the provisions of the Szt., and being in compliance with such provisions.
(5) The portion of the turnover of the transmission system operator from the
transmission system control fee which is distributed among authorised
distribution network operators in order to carry out the balancing payments
referred to in Article 142/A(2) and is specified in the resolution under Article
142(3) shall be considered as a discount. As regards the distributed part, the
provisions of Article 71(1) and 77(3) of Act CXXVII of 2007 on Value Added Tax
shall apply.
(6) From an accounting standpoint, capacities contracted by the transmission
system operator within the framework of ancillary services, and the electricity
used as an integral part of ancillary services shall be considered as mediated
services under point 40 of Article 52 of Act C of 1990 on Local Taxes.
VET Article 143 (1) Universal services shall be provided in the form of various
product packages laid down in specific other legislation, using fair, easily and
clearly comparable and transparent pricing techniques.
(2) The price of universal services shall be determined on the basis of the
prices on the electricity market, the justified cost of capital and operating
expenses of efficient authorised economic operators, as well as comparative
analyses, in such a way as to ensure due observation of the principle of
minimum cost by encouraging the authorised operators concerned to intensify

the efficiency of their management and continuously improve the quality of


their services in the short and long term.
(3) The mandatory product packages to be offered by providers of universal
services pursuant to paragraph (1), the prices of universal services rendered
on a mandatory basis, the conditions of price application, and the framework of
price regulation shall be decreed by the Minister based on the proposal of the
Office and in accordance with the provisions of Article 143/A(1).
(3a) The prices and application criteria of those among the tariffs legally
applied by individual providers of universal services at the date of the entry
into force of this paragraph for the product packages determined in the
legislation referred to in paragraph (1), which are not specified in the decree on
universal services, shall be approved by the Office upon the request of the
provider of universal services.
(4)
(5) The universal service fees published shall be construed as the maximum
prices. Any derogation from the maximum price downward shall be made in a
way that is non-discriminatory, and in a manner published in advance.
(6) The Minister may decree the types and fees of other services that may be
provided by providers of universal services for an extra charge on user
demand, and the types and fees of services that may be provided for an extra
charge in the case of the users breach of contract.
VET Article 143/A (1) The detailed rules of pricing and price application, and
the detailed rules of the framework of price regulation shall be prepared by the
Office. During its preparatory work the Office shall request the authorised
operators concerned to deliver their opinions.
(2) The provider of universal services shall publish the published prices on its
homepage and at its customer service offices within 3 working days after their
publication. The publication shall also contain information on the users right
of cancellation and on the deadline of cancellation.
(3) In the event of any change in the unit prices indicated on the invoices of
providers of universal services, the provider of universal services must clearly
notify users personally and individually at the time of issuing the new invoice
containing the new prices at the latest. The information shall also cover the
users right of cancellation.
(4) The Office shall monitor compliance with the provisions relating to the
prices of universal services.
(5) In order to facilitate the preparatory work of the Office referred to in Article
143(3), authorised operators shall, in accordance with the provisions of Article
143(1) to (2), make proposals on the prices of universal services which they
intend to apply, and shall submit their proposals to the Office.
(6) The provider of universal services shall
(a) comply with the principle of minimum cost and make the documents
evidencing compliance available to the Office,
(b) provide the Office with all information necessary for its duties relating to
price supervision and the preparation of official prices,
(c) ensure the transparency of the structure of costs and turnover in its
record-keeping and accounting system.
VET Article 144 (1) A network-related connection charge shall be paid for
connection to the public utility system. The criteria of determining networkrelated connection charges, the elements of the network-related connection

charges, and the general rules of the application of such charges shall be
decreed by the Minister according to the presentation of the Office. The
amount of network-related connection charges and the special rules of the
application of such charges shall be laid down by the Office in a resolution.
(2) The amount of network-related connection charges shall be determined in
a manner to enhance the enforcement of the principle of minimum cost by way
of influencing demand, and taking into account the benefits deriving from the
connection of subsequently connected network users. The amount of networkrelated connection charges shall not exceed the amount used for the network
investment the authorised network operator has made directly for the purpose
of the connection.
(3) Proceeds from network-related connection charges shall be used to
finance investments required for connection to the network.
(4) Network-related connection charges shall be itemised. In the case of
power plants and users connecting to a voltage level of 132 kV or more the
network-related connection charge may also be determined by stipulating a
calculation method. Network users and those who intend to connect to the
network shall pay the network-related connection charge determined by the
Office. Authorised network operators shall apply the price application
conditions determined by the Office.
(5) During the preparation of the ministerial decree referred to in paragraph
(1) the Office shall request the representative organisations of authorised
operators and users concerned to deliver their opinions. The Office shall
publish its presentation on the decree on its homepage and shall initiate the
promulgation of the decree with the Minister. The Minister shall approve or
refuse the Offices presentation within 30 days after the submission. If the
presentation:
(a) is accepted, the Minister shall publish the criteria and elements of the
network-related connection charges and the general rules of their application
in a decree within 30 days of the date on which the presentation of the Office
was submitted,
(b) is refused, the Minister shall publish his decision for refusal with
reasoning within 15 days following the date on which the decision was
adopted.
(6) Investments financed from the proceeds from network-related connection
charges shall be ignored regarding the calculation of network access fees for
the purposes of the calculation of cost of capital.
(7) The Office shall monitor compliance with the provisions relating to
network-related connection charges.
VET Article 144/A In order to compensate for the increase of the costs of the
regulation of the electricity system in the case of the connection of a power
plant with a generating unit of a nominal generating capacity exceeding 500
MW to the public utility system, said power plant shall pay a grid control
contribution to the transmission system operator after every MW of nominal
capacity of the generating unit above 500 MW in the manner and amount
determined in specific other legislation. This payment obligation shall not
affect the payment obligation under Article 144. During the determination of the
grid control contribution the impact of power plants with generating units with
a nominal capacity exceeding 500 MW which connected to the network
subsequently shall be taken into account.

VET Article 145 In the event of any infringement of the provisions contained
in Articles 142 to 144, the Office:
(a) shall order the authorised operator to cease any further use of the
unlawful prices and charges and to charge a lawful consideration,
(b) shall order the authorised operator to refund any extra income obtained
upon infringement of the provisions contained in Articles 142 to 144 plus the
annual average of the central banks prime rate in the reference year to the
aggrieved party, or if the aggrieved party cannot be identified, to all users
supplied by the authorised operator, or in the absence of such users, to the
network users engaged in a legal relationship with the authorised operator in
question, and
(c) may impose a penalty
by way of a resolution.
VET Article 145/A Until the entry into force of the decree adopted by virtue of
the authorisation granted in point 1 inserted into Article 170(2) by Act XL of
2008 on Natural Gas Supply and Article 17 of Act LV of 2010 on the amendment
of Act LXXXVI of 2007 on Electrical Energy the last prices approved by the
Office prior to the entry into force of Act XL of 2008 on Natural Gas Supply and
Act LV of 2010 on the amendment of Act LXXXVI of 2007 on Electrical Energy
shall apply from the date specified in the Offices resolution.
Price regulations
Vhr. Article 113 (1) The provider of universal services shall attach the documents
referred to in paragraph (2) to its proposal on the prices of universal services under
specific other legislation.
(2) In its proposal submitted in accordance with paragraph (1) the provider of
universal services shall present in addition to the calculation of the average price of
universal services the rates to be applied per tariff, as well as the calculations on
which these rates are based. The documents on the costs of electricity purchase
shall be attached to the proposal; these shall include in particular
(a) detailed documents on the quantity and prices of market-based electricity
purchase;
(b) detailed documents on the quantity and prices of electricity purchased under the
purchase obligation regime.
(3) The Office shall conduct the preliminary assessment of the prices proposed by
the provider of universal services in view of the documents referred to in paragraph
(2).
Vhr. Article 113/A (1) The Office shall, subject to the derogations set forth in
paragraphs (2) to (4), examine compliance with the provisions for prices upon
request or ex officio, and shall carry out an official control if necessary.
(2) If, as a result of the official control, the Office finds an infringement, it shall apply
the sanctions referred to in Articles 98 and 145 of the VET.
(3) In respect of the price of the universal service the Office shall examine
compliance with the provisions of specific other legislation on the pricing of universal
services in respect of the entire calendar year preceding the examination (hereinafter
referred to as: reference year) until 31 March of each year.
(4)
VET Article 146 (1) The purchase price of electricity subject to purchase
obligation shall be laid down in specific other legislation containing the
detailed regulations for the purchasing obligation regime specified in Article 9.

(2) The formula for the calculation of the price of electricity purchased by the
transmission system operator under the purchasing obligation regime in
connection with the distribution of such electricity among the market operators
affected shall be defined in specific other legislation adopted under Article
13(1).
Chapter XVII
MISCELLANEOUS FINANCIAL PROVISIONS
VET Article 147 (1) The financial assets from compulsory payments held on
the transmission system operators special account shall be allocated to cover
the following:
(a) financial support for restructuring the coal industry,
(b) financial support for the provision of discount-rate electricity in
accordance with specific other legislation to personnel described in specific
other legislation based on their previous or existing employment in the
electricity industry,
(c) financial support for restructuring cogeneration.
(2) The financial assets referred to in paragraph (1) shall be paid
(a) in connection with supplying electricity to network users
1. by the provider of universal services,
2. by the trader,
3. by the authorised producer;
(b) by the network user purchasing electricity directly from a regulated
electricity market or from abroad
to the transmission system operator on a monthly basis, and shall pass them
on to the network users.
(3) With a view to the objectives set out in paragraph (1), the financial assets
collected by the transmission system operator shall not comprise income for
the transmission system operator, shall not be included in the base of value
added tax under Article 71(1)(c) of Act CXXVII of 2007 on Value Added Tax, the
transmission system operator may not use them for other purposes, and it
shall be required to keep them on separate accounts, detached from all its
other assets. The transmission system operator shall be required to show the
financial assets held on the said separate accounts, including their net
proceeds minus handling charges, under liabilities.
(4) Providers of universal services, electricity traders and authorised
producers shall specifically indicate the financial assets paid (payable) under
paragraph (2) on the invoices issued for network users.
(5) The financial assets paid (payable) under paragraph (2) and indicated on
the invoices issued for network users in accordance with paragraph (4) shall
not comprise income for providers of universal services, electricity traders or
authorised producers, and they shall be required to keep them on separate
accounts, detached from each other and from all their other assets. Providers
of universal services, electricity traders and authorised producers shall be
required to show the financial assets held on the said separate accounts,
including their net proceeds minus handling charges, under liabilities to the
transmission system operator.

VET Article 148 (1) The amount of payment referred to in Article 147(2) shall
be calculated based on
(a) the volume of electricity supplied according to Article 147(2)(a); or
(b) the volume of electricity purchased according to Article 147(2)(b).
(2) The amounts payable according to Article 147(1), except for those referred
to in paragraph (4) of this Article, shall be determined under specific other
legislation in HUF/kWh units.
(3) The amounts of the financial assets under Article 147(1) shall be
determined in consideration of the financing requirement forecasted for the
following year and of the projected balance of the special account in the
reference year.
(4) The amount of the financial assets payable under Article 147(1)(c) shall be
1.20 HUF/kWh.
VET Article 149
Miscellaneous financial provisions
Vhr. Article 114 (1) Providers of universal services, electricity traders, authorised
producers selling electricity to network users, and network users purchasing
electricity directly from the regulated market or from abroad shall cooperate with the
transmission system operator in order to produce, or, if necessary, to transfer
authentic quantitative data for the reference month.
(2) The transmission system operator shall issue and submit monthly invoices to
the obliged parties referred to in Article 147(2) of the VET.
(3)
(4) The invoices shall be based on authentic data for the reference month. The
invoices shall contain the total payment liability of the obliged party for the reference
month, broken down by the titles referred to in Article 147(1) of the VET.
(5) The transmission system operator shall issue the invoices in such a way as to
ensure that the obliged party can receive the invoice at least five work days before
the due date indicated on the invoice. The payment shall be due on the 5th work day
after the receipt of the invoice.
(6) Complaints about invoices relating to payment liabilities shall be communicated
to the entitled party within 4 work days after the receipt of the invoice. Complaints
about an invoice shall not affect the due date of the unchallenged parts of the
invoice.
Vhr. Article 115 (1) Payments for the purpose referred to in Article 147(1)(a) of the
VET shall only be made under a resolution issued in accordance with the government
decree on financial support for the restructuring of the coal industry.
(2) Payments for the purpose referred to in Article 147(1)(b) of the VET shall be
made according to the certified invoice issued by the provider of universal services
on a monthly basis, in an amount equal to the benefit provided under specific other
legislation on discount-rate electricity supplied by the provider of universal services in
relation to employment in the electricity industry. The transmission system operator
shall inform the Office about such payments.
(3) The transmission system operator may use the amounts referred to in Article
147(1)(c) of the VET for fulfilling payments only in accordance with the ministerial
decree on district heating allowance.
Chapter XVIII

DATA DISCLOSURE, TREATMENT OF RESTRICTED INFORMATION,


CONFIDENTIALITY
VET Article 150 (1) In order to ensure that the electricity system and the
electricity market functions smoothly and without interruptions, network users
and authorised operators shall keep the data and information defined in
specific other legislation and in the Electricity Supply Codes, with all personal
data removed, for a period defined in specific other legislation, and shall
supply such data and information to the recipients as described in specific
other legislation and in conformity with such legislation in the Electricity
Supply Codes according to the procedure, at the times and in the breakdown
prescribed.
(2) Data processors may use the data and information received solely in
connection with their authorised activities relating to the operation of the
electricity system and the electricity market.
(3) The transmission system operator shall publish on a regular basis the
data specified in the Commercial Code relating to the operation of the
electricity market on its official website.
VET Article 151 (1) The transmission system operator, authorised distribution
network operators, providers of universal services, authorised producers
supplying electricity directly to users and electricity traders shall be authorised
to process the personal data necessary and sufficient for the identification of
users and of the paying agents referred to in specific other legislation, to the
extent deemed an integral part of the contract under this Act and specific other
legislation implementing it, in connection with and to the extent required for
carrying out the activity subject to authorisation, and for the conclusion of
contracts for the implementation and operation of the necessary technical
equipment, for the definition and amendment of these contracts and for
monitoring performance, for the invoicing of contractual charges and for the
enforcement of other contractual claims, and furthermore, for the purpose of
discharging the obligations for cooperation and data disclosure specified in
the Electricity Supply Codes. The data required for the identification of users, if
natural persons, shall include their name, address, mothers name and place of
birth, and for users other than natural persons their name, registered seat, tax
number, and company register number (or other registration number).
(1a) In relation to and to the extent necessary for discharging his duties
relating to monitoring compliance with the separation rules laid down in this
Act and in the Vhr. and to the implementation of the compliance program, the
compliance inspector shall be entitled to handle the business secrets of the
authorised network operator employing the compliance inspector, of which he
became aware during the performance of his activities, as well as the personal
data, including the name, address, place and date of birth, mothers name, and
data relating to the post and qualification of persons employed by the
authorised network operator.
(1b) In order to provide the benefit granted to vulnerable customers,
authorised distribution network operators shall be entitled to manage personal
and special personal data necessary for keeping the register of vulnerable
customers, including the name, address, place and date of birth, and mothers
name of vulnerable customers, as well as the data being the basis of their
vulnerable customer status.

(2) The authorised network operator. the authorised producer selling


electricity directly to users, the electricity trader, and the compliance inspector
(hereinafter collectively referred to as: data processor) shall delete any
personal data without delay if it was processed for reasons other than those
referred to in paragraphs (1) to (1b), or if the data in question is no longer
required for the purpose specified in paragraphs (1) to (1b), meaning, in
particular, if the legal relationship established in connection with the
authorised activity is terminated, or if the related claims are satisfied, or have
expired due to the term of limitation.
(3) Entering into a contract with a user or a paying agent referred to in
specific other legislation may not be rendered contingent by the data
processor upon consent to data processing operations for purposes other than
those defined in paragraphs (1) to (1b).
(4) The data referred to in paragraphs (1) to (1b), to the extent required for the
purpose of data processing, may be transferred to
(a) the natural persons and economic operators involved in contracting,
reading, billing, deliveries, control of payments of charges and management of
claims, management of sales, the technical implementation, review, inspection
and disconnection of service locations, and the performance of customer
service activities, on behalf of the data processor,
(b) the bodies authorised under legislation to settle disputes arising in
connection with billing and sales,
(c) the Office,
(d) competent national security bodies, investigating authorities, prosecutors
and the competent court of justice for the protection of national security,
national defence or public safety and for the prosecution of criminal acts,
(e) court bailiffs governed by Act LIII of 1994 on Judicial Execution,
(f) the National Authority for Consumer Protection,
(g) in the case of vulnerable customers, the authorised distribution network
operator in order to monitor consumption at a single service location, and the
electricity trader in order to provide the benefits or special treatment afforded
to vulnerable customers, and
(h) for the purpose of accounting for the purchase of discount-rate electricity
in relation to persons eligible for purchasing discount-rate electricity as
specified in the standard service agreement of the provider of universal
services in relation to prior or current employment in the electricity industry,
the transmission system operator.
(5) In respect of data specified in points (a) to (c) and (f) to (h) of paragraph (4)
the obligation to maintain confidentiality shall equally apply to the recipients of
such data as to the authorised operator. The data processor shall notify the
data subject in the cases contained in points (a) to (c) and (e) to (h) of
paragraph (4) upon transferring their data.
VET Article 152 (1) Authorised operators, micro power plants which are not
subject to authorisation under this Act, operators of private lines which were
established before 1 October 2011 and which are not subject to authorisation,
integrated electricity companies, and the outsourcing contractors employed by
authorised operators in accordance with Article 94 shall be required to supply
the information specified in this Act and in specific other legislation to the
Office to the extent required for it to discharge its duties. The type of data to be

supplied and the procedures for supplying them shall be laid down by the
Office.
(2) The transmission system operator, authorised producers and electricity
traders must supply the information requested by the European Commission
and the Agency in relation to the compliance of the transmission system
operator with separation rules.
VET Article 153 (1) The transmission system operator shall ensure the
confidentiality of information regarded as business secrets.
(2) Without prejudice to the statutory obligation to disclose information, the
authorised distribution network operator and the transmission system operator
shall preserve the confidentiality of economically sensitive information
obtained during their authorised activities under this Act, and shall prevent
commercially advantageous information relating to their own activities from
being disclosed in a discriminatory way.
VET Article 154 The transmission system operator, to the extent required to
discharge its duties governed by this Act, shall be authorised to transmit data
specified in the Supply Codes within the framework of international
cooperation to the international organisations with which it cooperates.
VET Article 155 (1) The Office shall be authorised to process data to the
extent required to discharge its duties governed by this Act, in compliance with
relevant data protection legislation.
(2) The Office shall be entitled to transmit, upon request, the data it has
received to others under the conditions defined by statutory provisions.
(2a) The Office may transmit data qualified as business secrets to the
authorities referred to Articles 162 to 162/B within the framework of
cooperation under this Act.
(3) The Office shall provide sufficient technical and logical facilities for the
protection of the data it manages to prevent unauthorised access, disclosure,
alteration or deletion.
(4) The Office shall publish on its official website the data defined in specific
other legislation.
International Cooperation and Relations with Bodies of the European Union
Vhr. Article 116 (1) Within the framework of international cooperation the Office
may transfer data other than personal data to the members of the European
Regulators Group to the extent necessary for discharging their duties, and may
request data and information necessary for discharging its duties from these
organisations.
(2) In order to ensure the harmonisation of the electricity market on the regional and
European level, the national report to be submitted annually under Directive
2009/72/EC of the European Parliament and of the Council of 13 July 2009
concerning common rules for the internal market in electricity and repealing Directive
2003/54/EC shall be prepared by the Office.
(3) The reporting and data provision obligations laid down in Community legal acts
on energy shall be fulfilled towards the European Commission by the organisation
referred to in Annex 24 to this Decree within the deadlines specified therein.
VET Article 156 At the request of the supervisory authorities of Member
States, the Office shall be entitled to disclose data relating to the operation of
the electricity system and the electricity market. If unable to disclose the

information requested, the Office shall inform the requesting competent


authority of the reasons.
VET Article 157 The information to be published according to Article 150(3)
and Article 155(4) shall be deemed information of public interest.
Chapter XIX
LEGAL STATUS, FUNCTIONS AND COMPETENCES OF THE HUNGARIAN
ENERGY OFFICE
Functions and Competences of the Hungarian Energy Office
VET Article 158 (1) The Office shall be a government agency vested with
independent functions and competences.
(2) The objectives of the Office shall include:
(a) to ensure the proper functioning of companies engaged in activities
rendered subject to authorisation under this Act and other legislation adopted
by authorisation of this Act, and the energy supply market relying on a system
of lines, in compliance with the relevant legislation and regulatory provisions,
(b) to promote efficient and sustainable competition on the electricity market,
(c) to enforce observation of efficiency requirements and the principle of
minimum cost,
(d) to guarantee and improve the security of supply,
(e) to enforce observation of energy policy objectives and the requirements of
sustainable development,
(f) to provide information to the public,
(g) to protect the interests of users and authorised operators, and
(h) to exercise the powers, in accordance with the requirements of the
European Union, relating to monitoring the activities of market operators and
to price regulation with a view to preventing any abuse of technical monopoly
and ensuring that there is no restriction of competition,
(i) to promote the protection of vulnerable customers,
(j) to facilitate switching between traders,
(k) to promote the establishment and actual market opening of a competitive,
secure and sustainable internal electricity market within the European Union,
and, to this end, to participate in the establishment of competitive and properly
functioning regional markets,
(l) to ensure that the transmission system operator and the network users are
motivated to improve the efficiency of the electricity system and to facilitate
market integration.
VET Article 159 (1) The Office shall be vested with the following
responsibilities in connection with the supply of electricity, and the
supervision of the security of supply and the effective functioning of the
electricity market:
1. to issue and in cases specified in legislation amend or withdraw the
authorisations required for performing activities which are rendered subject to
authorisation under this Act,
2. to approve the standard service agreements and internal selection codes
adopted by the authorised operators, and their amendments, or to amend or

withdraw such agreements and codes ex officio in the cases specified in this
Act,
3. to approve the Electricity Supply Codes and the Regulated Electricity
Market Code and their amendments, or to amend or withdraw such codes ex
officio in the cases specified in this Act;,
4. to monitor compliance with the obligations set out in this Act, in specific
other legislation implementing it, in Regulation (EC) No 714/2009, in the
resolutions of the Office, in the Electricity Supply Codes and in the standard
service agreements,
5. to make a proposal on the framework rules for the determination and
regulation of network access fees,
6. to determine the network access fees and network-related connection
charges, and the special conditions for the application of the various charges,
7. to make preliminary arrangements for the regulations relating to the pricing
mechanisms of universal services,
8. to make a proposal on the type of services that may be provided by
authorised distribution network operators and providers of universal services
for an extra charge, and on the fees for such services,
9. to decide on the classification or reclassification of lines as public, more
specifically as transmission or distribution network components,
10. to adjudge any application for exemption in connection with
interconnecting lines according to the provisions laid down in Article 37,
11. to approve the network development plan prepared by the transmission
system operator according to the criteria laid down in the Vhr., to monitor the
implementation thereof and to evaluate the plan annually,
12. to issue calls for tenders and evaluate tenders for the construction of
power plants or relating to demand-side management measures in compliance
with the provisions of Article 8(1), for network development under Article 26(1),
or for the development of the transmission network as specified in Article
26/A(1),
13. to establish ex officio by way of a resolution and within the framework
defined by law the minimum quality requirements for activities subject to
authorisation under this Act and their expected standard for each individual
authorised operator, the minimum requirements for the method of keeping
contact with users, the detailed rules of providing information to users not
regarded as household customers, as well as the minimum requirements for
authorised network operators relating to the safe operation of the network,
14. to investigate any changes in the generating capacity of power plants with
a view to maintaining the continuous and secure supply of electricity, and to
determine the extent of generating capacity to be offered in the case of undue
withholding of production,
15. to approve, in accordance with this Act, the transformation of an
authorised operator, or its termination without succession, the reduction of its
subscribed capital, or the acquisition of any share and control in an authorised
operator, as specified in the Gt., the conclusion of transactions as a result of
which a person or persons from a third country would control the transmission
system operator or its controlling shareholder, the performance by a third
person of any of the functions listed in the operating licence of the authorised
operator as subject to authorisation, as well as the transfer, assignment or
lease of fundamental assets and rights of material value of an authorised

operator as indicated in the operating licence to a third person, or conveying or


encumbering them in any other way or pledging them as collateral,
16. to review applications submitted by mining operators who are eligible for
aid for restructuring the coal industry for the disbursement of aid for
restructuring the coal industry, and to submit a proposal to the Minister on the
amount of aid for restructuring the coal industry it considers justified, and
17. to discharge the duties referred to in Article 19 of Regulation (EC) No
714/2009.
(2) In relation to its duties relating to the enforcement of the requirement of
equal treatment, the Office shall lay down the general rules of the access of
network users to the public utility system.
(3) The Office shall be vested with the following responsibilities in connection
with the promotion of effective competition:
1. to check the execution of the cross-border transmission of electricity,
2. to monitor compliance with transparency requirements,
3. to monitor competition on the electricity market in the course of its market
surveillance activities, and to conduct market analyses and official inspections,
4. to carry out the duties conferred on it by this Act in relation to the
identification of authorised operators with significant market power and the
regulation of such markets,
5. to monitor compliance with the regulations relating to network access fees
and network-related connection charges, and the prices of universal services,
6. to investigate contracts concluded for a term of more than five years in
respect of compliance with the obligations laid down in the legislation and
legal acts of the European Union referred to in Article 96(1), except if such
investigation falls within the competence of the competition authority, and
7. to define the volume of electricity subject to purchasing obligation and the
duration of the purchasing obligation.
(4) The Office shall be vested with the following responsibilities in relation to
compliance with separation rules:
1. to approve the financial and commercial agreements concluded between
the transmission system operator and the vertically integrated electricity
company, the conditions of services that may be rendered by the transmission
system operator to the vertically integrated electricity company, and the
agreements under Article 26/A(5),
2. to approve the compliance programs submitted by authorised network
operators, and their amendments, the compliance report, as well as the
appointment of the compliance inspector of the transmission system operator,
and the conditions, duration and termination of the inspectors term of office,
3. to control compliance with the provisions pertaining to unbundling,
including the rules for preventing cross-financing,
4. to monitor communication, as well as commercial and financial relations
between the transmission system operator and the vertically integrated
electricity company,
5. to conduct certification procedures,
6. to decide on complaints arising between the vertically integrated electricity
company and the transmission system operator that is its member, and
between the transmission system manager and the owner of the transmission
network, and

7. to raise any necessary objections to the appointment, reappointment,


working conditions and the termination of the term of office of operational
managers and the members of the supervisory board; to check the early
termination of the employment relationship or any other legal relationship for
employment of operational managers, and to initiate, if necessary, the
termination of the compliance inspectors term of office.
(5) The Office shall be vested with the following responsibilities in relation to
the protection of users:
1. to proceed if an authorised network operator has violated the provisions
relating to connection, network access, or the availability of the network in the
quality required; to monitor compliance with users demands, and check the
appropriation of network-related connection charges paid by users for
connection to the public utility system, and to impose penalties,
2. to adjudge complaints arising in connection with authorised operators,
exclusive of the complaints of household customers relating to violations of
statutory provisions pertaining to the settlement of accounts, billing, payment
of charges, metering, suspension of or disconnection from electricity supply
due to late payment, and the reconnection of users to supply following the
settlement of debts, and
3. to adjudge the submissions lodged by network users against the
authorised network operator, or by purchasers and users against the owner of
the private line in relation to the violation of obligations laid down in this Act.
(6) The Office shall be vested with the following responsibilities in relation to
data disclosure and data protection:
1. to comply with the statutory requirement to collect personal data, and to
fulfil data collection, data disclosure and reporting obligations as prescribed in
the Vhr.,
2. to discharge the duties referred to in Article 20 of Regulation (EC) No
714/2009, and
3. to prepare an annual report for the Agency and for the European
Commission on its own activities and the discharge of its duties.
Certification Procedure
VET Article 160 (1) The Office shall monitor the transmission system
operators continuous compliance with separation rules. In order to ensure
compliance, the Office shall conduct a certification procedure in the following
cases, in accordance with the provisions of this Article:
(a) prior to the submission of the application for the issuance or extension of
an authorisation for transmission system control, at the request of the client,
(b) upon the notification of the transmission system operator as referred to in
paragraph (4),
(c) if the Office becomes aware of a planned change affecting control and
influence over the transmission system operator or the owner of the
transmission network, which can lead to a violation of separation rules, or if it
has reasonable grounds to suspect the violation of separation rules,
(d) upon the reasoned initiative of the European Commission, or
(e) if, pursuant to Article 99(1a), the appointment of a transmission system
manager becomes necessary, prior to the appointment.
(2) During the certification procedure the Office shall establish compliance
with separation rules if the applicant for the authorisation for transmission

system control, the transmission system operator, or the person to be


appointed as transmission system manager complies with the provisions of
Articles 102 to 102/E, 103 or 104 pertaining to them. If during the certification
procedure the Office finds that the transmission system operator or the person
to be appointed as transmission system manager fails to comply with the
separation rules laid down in Articles 102-102/E, 103 or 104 pertaining to them,
it shall apply the sanctions referred to in Article 96 in the case of the
transmission system operator, and in the case of the person to be appointed
as transmission system manager it shall refuse appointment.
(3) The Office shall adopt a resolution on compliance with separation rules
within the deadline set forth in Article 168(4)(e) and, while suspending the
procedure, shall send it immediately to the European Commission together
with all information related to the decision for the purpose of conducting the
procedure referred to in Article 3 of Regulation (EC) No 714/2009. Following the
procedure of the European Commission the Office shall terminate the
suspension of the certification procedure, and shall proceed according to
Article 3(2) of Regulation (EC) No 714/2009.
(4) The transmission system operator shall inform the Office about any
planned legal transaction which may make the repeated inspection of
compliance with separation rules necessary.
(5) If the Office has certified compliance with the separation rules laid down
in Article 104 pursuant to point (a) paragraph (1), and has issued an operating
licence for transmission system control in due consideration of Article 104(6),
it shall reject any subsequent application submitted by the transmission
system operator for the certification of compliance with the separation rules
laid down in Articles 102 to 102/E without substantive examination.
Vhr. Article 117 (1) In the interest of users the Office shall determine quality
indicators both general and pertaining to specific users corresponding to the
activities of authorised operators (minimum quality requirements, and expected
standards). The Office shall have powers to commission an independent expert to
conduct a survey on the level of customer satisfaction in the territory of operation of
an authorised operator, the standard expected from individual authorised operators,
and the quality parameters of electricity.
(2) The quality indicators shall cover the following in particular:
(a) security of supply,
(b) continuity,
(c) operational safety,
(d) user connections,
(e) measurable and verifiable features of voltage quality.
(3) The resolution referred to in paragraph (1) shall contain the mandatory deadline
for data provision by authorised operators, and the content and reliability
requirements for data.
(4) The Office shall publish its recommendation on the minimum quality
requirements and expected standards (hereinafter referred to as: regulatory
directions) on its homepage, taking into account national and international
experience.
Observations concerning the regulatory directions may be made by any person
within 30 days. On the basis of the observations and the regulatory directions the
Office shall, if necessary, initiate further consultations with the authorised operators

and the organisations representing the interests of energy users which were
registered by the Energy Consultation Council and made observations.
(5) The resolutions referred to in paragraph (1) shall be issued during the official
proceeding launched ex officio after the consultation referred to in paragraph (4).
(6) The clients participating in the official proceeding referred to in paragraph (5)
shall be individual authorised operators.
Vhr. Article 117/A In respect of service activities covered by the VET, the
Government shall appoint the Office as the authority supervising the service referred
to in Act LXXVI of 2009 on the General Rules of Taking Up and Pursuing Service
Activities.
Vhr. Article 117/B (1) Applications for a certification procedure shall be
accompanied by the documents referred to in Annex 12.
(2) The Office shall decide on the approval of documents submitted under points
I(d) and (e) of Annex 12 at the same time as adjudging the application for an
operating licence for transmission system control.
Financial Management of the Office
VET Article 161 (1) The Office shall cover the expenses relating to the
discharge of its duties and operations, and the costs of its operation from its
own revenues.
(2) The revenues of the Office shall comprise:
(a) supervision fees,
(b) administrative service fees,
(c)
(d) other income.
(3) (3) For its supervisory activity, the Office shall charge authorised
operators a supervision fee amounting to 0.06 % of the net turnover from the
activity of the authorised operator in the previous year. Where an authorised
operator did not have any net turnover during the previous year, or does not
have any net turnover shown for the entire year, an advance shall be paid for
the annual supervision fee amounting to 0.06 % of the planned net turnover
indicated in the business plan for the reference year from the activities subject
to authorisation. If the actual net turnover for the reference year differs from
what is contained in the business plan, the amount of the supervision fee
payable for the following year shall be adjusted by 0.06 % of the difference as
appropriate.
(4) In respect of the Offices proceedings opened upon request, an
administrative service fee shall be paid.
(5) The amounts of administrative service fees, and the detailed regulations
on the terms of payment of fees and other incomes shall be decreed by the
Minister in agreement with the Minister for Tax Policy.
(6)(7)
THE OFFICES RELATIONS WITH OTHER BODIES; INTERNATIONAL
COOPERATION AND RELATIONS WITH THE BODIES OF THE EUROPEAN
UNION
Cooperation with the Hungarian Competition Authority

VET Article 162 (1) The Office and the Hungarian Competition Authority
(hereinafter referred to as: competition authority) shall cooperate to enforce
the consistent protection of competition on the electricity market and to foster
uniform application of law.
(2) In the application of Articles 110 to 111, the Office shall take into account
if supplied within the prescribed time limit the opinion of the competition
authority in its proceedings for the identification of authorised operators with
significant market power and for defining the obligations imposed upon these
operators, and shall indicate in the statement of reasons of its resolution the
reasons if ignoring the said opinion.
(3) The Office and the competition authority shall ensure that their
procedures applied in the course of their cooperation comply with the
provisions of legislation on data protection, including in cases where any data
is supplied to other authorities, and that the interests associated with business
secrets are not prejudiced.
(4) The Office and the competition authority shall conclude an agreement on
the details of their cooperation, and shall make this agreement available to the
public.
Cooperation with the Hungarian Financial Supervisory Authority
VET Article 162/A (1) The Office and the Hungarian Financial Supervisory
Authority (hereinafter referred to as: Supervisory Authority) shall cooperate in
order to ensure the prudent operation of the regulated electricity market, the
effective official supervision of transactions concluded and accounted for on
the regulated electricity market, the flow of information and uniform application
of law. The Office and the Supervisory Authority shall conclude an agreement
on the details of their cooperation, and shall make this agreement available to
the public.
(2) The Office and the Supervisory Authority shall ensure that their
procedures applied in the course of their cooperation comply with the
provisions of legislation on data protection, including in cases where any data
is supplied to other authorities, and that the interests associated with business
secrets are not prejudiced.
Cooperation with the National Tax and Customs Administration of Hungary
VET Article 162/B (1) The Office and the National Tax and Customs
Administration of Hungary shall cooperate in order to discharge their official
duties in relation to authorised operators and electricity traders engaged in
cross-border electricity export and import. The Office and the National Tax and
Customs Administration of Hungary shall conclude an agreement on the
details of their cooperation, and shall make this agreement available to the
public.
(2) Within the framework of cooperation the Office and the National Tax and
Customs Administration of Hungary shall mutually inform each other about the
quantity of electricity exported and imported across borders, and purchased
and sold within the territory of the country by the authorised operators referred
to in paragraph (1).
(3) The Office and the National Tax and Customs Administration of Hungary
shall ensure that their procedures applied in the course of their cooperation

comply with the provisions of legislation on data protection, including in cases


where any data is supplied to other authorities, and that the interests
associated with business secrets are not prejudiced.
Relations with the Consumer Protection Authority and with the Representative
Organizations of Users
VET Article 163 (1) With a view to protecting the interests of household
customers, the Office shall cooperate with the consumer protection authority
in the application of legislation relating to energy systems relying on lines and
in discharging its duties.
(2) The Office and the consumer protection authority shall conclude an
agreement on the details of their cooperation, and shall revise this agreement
in the case of any amendment of legislation affecting the cooperation of the
two authorities, but at least once a year. This agreement shall be made
available to the public by the Office and the consumer protection authority.
(3) The Office shall cooperate with associations representing user interests
to:
(a) organise and conduct consultations between associations representing
user interests and service providers, and resolve the disputes that remain
pending after such consultations,
(b) provide associations representing user interests and the consumer
protection authority with all of the data and information, as defined in specific
other legislation, that are related both to those activities of an authorised
operator that are subject to authorisation and to the enforcement of users and
household consumers interests.
(4) The Office shall operate the Energy Consultation Council.
International Cooperation and Relations with Bodies of the European Union

VET Article 164 (1) The Office may enter into partnership agreements and
exchange information with foreign regulatory authorities and trade
associations, and become a member of such organisations, provided that it
complies with the provisions of the statutory regulations in force.
(2) The Office shall use the data and information received from foreign
regulatory authorities within the framework of international cooperation for the
following purposes, and may supply information, other than personal data, to
foreign regulatory organizations for the following purposes:
(a) for adjudging applications for the authorisation of energy sector
companies engaged in activities which are subject to authorisation, and for the
verification of information contained in such applications,
(b) for supporting the resolutions adopted by the Office (in particular
decisions, measures and sanctions).
(3) At the request of the European Commission, the Agency or the Energy
Community Regulatory Board, the Office shall have powers to supply data and
information relating to the operation of the electricity system and the electricity
market.
(4) At the request of the Agency and foreign regulatory authorities the Office
shall have powers to supply data, other than personal data, necessary for them

to discharge their duties laid down in Directive 2009/72/EC, and may request
data and information from these organisations to the extent necessary for
discharging its duties.
International Cooperation and Relations with Bodies of the European Union
Vhr. Article 116 (1) In the framework of international cooperation with members of
the Council of European Energy Regulators (hereinafter referred to as: CEER) and
the European Regulators' Group for Electricity and Gas (hereinafter referred to as:
ERGEG). the Office may supply and use data, other than personal data, falling within
its competence under Article 159 of the VET.
(2) In order to ensure the harmonisation of the electricity market on the regional and
European level, the national report to be submitted annually under Directive
2003/54/EC of the European Parliament and of the Council of 26 June 2003
concerning common rules for the internal market in electricity and repealing Directive
96/92/EC shall be prepared by the Office under the organisation of the ERGEG,
within a single framework.
(3) The reporting and data provision obligations laid down in Community legal acts
on energy shall be fulfilled towards the European Commission by the organisation
referred to in Annex 24 to this Decree within the deadlines specified therein.
VET Article 165 (1) Pursuant to the regulations on energy systems relying on
lines, the following entities may, solely in connection with access to energy
supply systems relying on lines crossing the borders of Hungary, proceed in
the competence of the Office in the cases specified in legislation on energy
systems relying on lines:
(a) the European Commission,
(b) the Energy Community Regulatory Board, and
(c) the Agency.
(2) If the Agency proceeds in the competence of the Office in the case
referred to in Article 7(1), Article 8 or Article 9(1) of Regulation (EC) No
713/2009, the enforcement of the decision of the Agency shall be ensured by
the Office.
(3) The Office shall enforce every binding decision of the Agency under
Regulation (EC) No 713/2009.
(4) The Office shall cooperate and. if necessary, exchange information with
foreign regulatory authorities and the Agency
(a) concerning cross-border issues or
(b) in order to integrate national markets on the regional level.
(5) The cooperation between the Office and foreign regulatory authorities as
referred to in paragraph (4) shall have the following purposes:
(a) to facilitate the drawing up of agreements ensuring the optimal operation
of the network,
(b) to establish and support cross-border capacity allocation and common
regulated electricity markets,
(c) to facilitate the provision of the minimum level of appropriate
interconnecting capacity for ensuring actual competition within the region and
between regions, and for improving the security of supply, including through
new connections, without discrimination against the electricity traders of
Member States,

(d) to coordinate the preparation of all the codes pertaining to transmission


system operators and other market participants, as referred to in Article 8(5) to
(6) of Regulation (EC) No 714/2009,
(e) to coordinate the preparation of regulations on congestion management
by transmission system operators,
(f) to coordinate the exchange of information relating to the regional
cooperation referred to in point (b) of paragraph (4).
Article 165/A (1) The Office may request the Agency to deliver its opinion on
whether the resolution of a foreign regulatory authority complies with the
guidelines issued under Directive 2009/72/EC or Regulation (EC) No 714/2009
(hereinafter referred to as: guidelines).
(2) If the Office finds that the resolution of a foreign regulatory authority on
cross-border electricity export and import fails to comply with the guidelines, it
shall inform the European Commission within 2 months after the date of the
resolution.
(3) If a foreign regulatory authority or the European Commission requests the
Agency to deliver its opinion about whether the resolution of the Office on
cross-border electricity export and import or other issues complies with the
guidelines, and the Agency finds that the Offices resolution fails to comply
with the guidelines, the Office shall implement the provisions contained in the
opinion of the Agency within 4 months after the receipt of the Agencys
opinion.
(4) If during the proceeding launched for the further inspection of the
compliance of the Offices resolution with the guidelines the European
Commission finds that the resolution of the Office fails to comply with the
guidelines, and therefore requires the Office to revoke its resolution, the Office
shall revoke its resolution within 2 months, and must inform the European
Commission about the revocation. If the European Commission does not
launch a proceeding or does not adopt a decision within 4 months after the
date of its decision on the commencement of the proceeding, it shall be
regarded as not having raised any objection to the Offices resolution.
(5) At the request of the European Commission the Office and the parties
participating in the proceeding of the Office shall be entitled to submit
observations during the proceeding launched by the European Commission for
the further inspection of the compliance of the resolution of the Office with the
guidelines.
Organisational Structure, Management and Employees of the Office
VET Article 166 (1) The president and the vice-presidents of the Office shall
be nominated by the Minister and appointed and dismissed by the Prime
Minister. Their terms of office shall be for six years, which may be extended
once for a further period of six years. At the expiration of the terms of the
president and the vice-presidents, or if their term of office terminates for other
reasons, the Minister shall issue a public announcement inviting applications
for the office falling vacant. The applications received shall be evaluated by the
Minister within thirty days following the application deadline. The Minister shall
inform the Prime Minister in writing or by electronic means concerning the
results of the evaluation of the applications and the ranking of candidates with
an explanation.

(2) The Minister shall exercise employers rights vis--vis the president and
vice-presidents, except for their appointment and dismissal from office.
(3) The terms of office of the Offices president and vice-presidents shall
terminate upon
(a) expiration of the appointment,
(b) resignation,
(c) dismissal,
(d) death.
(4) The term of office of the president or vice-presidents of the Office shall
terminate upon dismissal, if
(a) they are found guilty of a crime by a final court ruling,
(b) they become permanently incapable of performing their duties,
(c) a conflict of interests, if any, is not terminated within three months,
(d) their activities imperil the Office in exercising its official powers.
(5) The motion for dismissal referred to in paragraph (4) shall be sent to the
president or vice-presidents of the Office, upon which they shall have the right
to seek remedy in the labour court in accordance with the regulations set forth
in the Labour Code.
(6) The motion for dismissal may be submitted to the Prime Minister following
the period available to seek remedy at the court, or following the final decision
of the court if applicable.
(7) The president of the Office shall:
(a) direct the Office,
(b) exercise employers rights with regard to the civil servants of the Office,
(c) supervise the financial management of the Office,
(d) represent the Office,
(e) perform all the duties assigned in his competence by law or by the
Offices organisational and operational codes,
(f) participate in Government sessions discussing proposals that affect the
Offices duties and responsibilities in an advisory capacity.
VET Article 167 (1) Above and beyond the provisions of the Act on the Legal
Status of Civil Servants (hereinafter referred to as: Kjtv.) governing
incompatibility and disqualification, the civil servants of the Office may not be
employed by electricity companies or integrated electricity companies which
fall within the competence of the Office and are subject to authorisation.
(2) Civil servants of the Office may not acquire, except by way of inheritance,
ownership in any electricity company that falls within the competence of the
Office and is subject to authorisation.
(3) Upon appointment, the Offices civil servants shall make a statement on
their compliance with the provisions of paragraphs (1) to (2) to the person
exercising employers rights. The Offices civil servants shall terminate any
ownership acquired prior to appointment or through inheritance within three
months of appointment or acquisition, as applicable.
(4) Prior to discharging the obligation specified in paragraph (3), civil
servants of the Office may not participate in the preparation or adoption of
decisions that pertain to a company affected by the conflict of interests.
(5) Civil servants of the Office shall be subject to the provisions of the Kjtv. in
every respect except for the ratio specified in Article 14(1) of the Kjtv., which
shall be forty per cent, and the salary supplement specified in Article 19(1) of
the Kjtv., which shall be 80% of the basic salary in the case of civil servants

with higher education qualifications and 35% of the basic salary in the case of
civil servants with secondary school qualifications. In the case of the Office,
the prohibition for overstepping the ceiling defined in specific other legislation
concerning bonus appropriations from among non-regular personal
disbursements, and to payments of bonuses from the residual of personal
disbursement appropriations or from the cash remaining shall not be applied.
General Provisions Governing the Proceedings of the Office
VET Article 168 (1)
(2) The Office may conduct on-site inspections at the registered seat and
establishments of companies covered by this Act, and at any other place where
activities subject to authorisation under this Act are performed, and where any
assets specified in the authorisation are deposited; in the case of the
transmission system operator, vertically integrated electricity companies, the
transmission system manager and the owner of the transmission network the
Office may choose to conduct its on-site inspection without prior
announcement. The Office shall supply a letter of authorisation to the person
conducting the inspection, and it shall be handed over at the request of the
authorised operators representative, employee or agent. Any on-site
inspection of operating equipment shall be conducted in due observation of
occupational safety and technical safety regulations.
(3) The Office shall be vested with powers to inspect the documents related
to activities governed by this Act including the activities of horizontally
integrated electricity companies relating to supplies of primary energy sources
as well as documents containing business secrets, and to make copies of or
extracts from such documents, and to request from authorised operators ad
hoc and regular information to the extent required to discharge its duties.
(4) The administrative time limit for the Offices proceedings shall be
(a) three months, unless otherwise provided for by this Act,
(b) two months if the Office
(ba) adjudges complaints submitted against an authorised network operator
due to the violation of its obligations set forth in this Act,
(bb) adjudges complaints submitted by users against authorised operators
other than authorised network operators, or
(bc) adjudges complaints arising between the vertically integrated electricity
company and the transmission system operator that is its member, and
between the transmission system manager and the owner of the transmission
network.
(c) 30 days in the case of proceedings for a restricted electricity trading
licence,
(d) six months in the case of the Offices proceeding for identifying an
authorised operator with significant market power on the basis of a market
analysis or for stipulating obligations for such an operator, which may be
extended once by three months,
(e)
(e) 4 months for adopting a resolution in the certification procedure referred
to in Article 160 and for the simultaneous suspension of the procedure, and the
period specified in Article 3(2) of Regulation (EC) No 714/2009 for the
termination of the suspension of the procedure and for the publication or

amendment of the resolution following the receipt of the opinion of the


European Commission or following the expiry of the administrative time limit
laid down for the European Commission in Article 3(1) of Regulation (EC) No
714/2009,
(f) 30 days if the Office acts under Article 39/E(2), and
(g) six months for the proceeding conducted for determining network access
fees prior to the commencement of the price regulation cycle, which may be
extended once by three months.
(4a) Notwithstanding the general procedural rules of the Ket., the president
may, in justified cases, extend the administrative time limit laid down for the
Office in paragraph (4)(ba) and (bc) once by 2 months prior to the expiry of the
deadline, and by a further period of 2 months with the consent of the client
submitting the complaint.
(5) At the request of the client the Office may conduct an official inspection.
(6) If the application the client has submitted is incomplete, the Office shall
advise the client to supply any missing information within thirty days from the
day after the receipt of the application.
(7) In its proceedings the Office shall be entitled in the absence of an
adverse party to forbear, in part or in full, the enforcement of the use of the
Hungarian language and the demand that all documents be submitted in the
Hungarian language. In such cases a Hungarian summary of these documents
shall be submitted to the Office.
(8)
(9) The Office shall publish its resolutions.
(10) During the court review of the Offices resolution the court competent in
public administration cases may amend the resolution of the Office, except for
decisions made in accordance with the government decree on measures to be
taken in the case of a major malfunction of the electricity system or an
electricity supply emergency situation, resolutions adopted as a result of a
certification procedure, and resolutions determining the network access fees
or network-related connection charges.
(11) In connection with any case that has been resolved by the Offices final
resolution, a request for reopening the case may not be lodged.
(12) Damage claims may be filed against the Office in connection with any
resolutions adopted within its official jurisdiction only if the Offices resolution
or its failure to issue one is in violation of the law and thereby directly
responsible for the damage incurred.
(13) The decisions of the Office shall not be amended or annulled under
supervisory powers.
(14)
(15) The supervisory body of the Office may not order suspension of the
enforcement of any final resolution of the Office.
(15a) In the case of an application for court review, enforcement shall not be
suspended if the resolution
(a) determines network access fees or network-related connection charges,
(b) approves the procedure for determining balancing supply and the
conditions of its accounting,
(c) determines the conditions of access to an interconnecting line, including
the approval of the procedures for capacity allocation and congestion
management, or

(d) appoints an authorised distribution network operator for the temporary


operation of a private line.
(16) In its authorisation procedures the Office shall publish a notice
concerning the opening of the proceedings.
(17) During its proceedings concerning complaints and notifications of public
interest under Article 141 of Act XXIX of 2004 on Amendments and Repeals of
Legal Regulations and other Legislative Changes Related to Hungarys
Accession to the European Union the Office shall proceed in accordance with
the provisions of Articles 141 to 143 of Act XXIX of 2004 with the difference that
the time limit for adjudgement shall be three months.
VET Article 168/A (1) In respect of procedures for determining network
access fees and network-related connection charges, only the authorised
network operator concerned shall be considered as a client.
(2) The court review of the Offices resolution determining network access
fees or network-related connection charges may be applied for by the client
concerned at the court competent in public administration cases with reference
to the violation of law, by way of lodging a claim against the Office within 15
days of the receipt of the resolution.
(3) The court shall review the resolution determining network access fees or
network-related connection charges as a matter of urgency, with the stipulation
that the court shall adopt a decision within 30 days after the submission of the
request for review at the latest.
(4) If the court repeals the resolution determining network access fees or
network-related connection charges during the review thereof by way of a final
decision, the fees and price application conditions which were applied
immediately prior to the final court decision shall apply until the new, final
network access fees or network-related connection charges determined by the
Office in a new proceeding based on the court decision enter into force, with
the stipulation that the previous network access fees shall apply for no longer
than until the entry into force of the new network access fees determined by
the Office for the following calendar year in accordance with the provisions of
this Act.
(5) During the court review of a resolution determining network access fees
or network-related connection charges the resolution shall not be repealed
partially.
(6) If the court repeals a part of the resolution determining network access
fees or network-related connection charges during the review thereof by way of
a final decision, the Office shall be entitled to amend parts of the resolution
which are not covered by the court review but are an integral part of the
resolution in terms of calculation within 6 months after the date the courts
decision becomes final, in accordance with Article 114 of the Ket.
General Provisions Governing the Proceedings of the Office
Vhr. Article 118 (1)
(2) When publishing its resolutions, the Office shall proceed in accordance with the
provisions of the Act on Informational Self-Determination and Freedom of
Information, and the Act on the Protection of Classified Data.
Arbitration Tribunal for Energy

VET Article 169 (1) The Office shall establish the Arbitration Tribunal for
Energy.
(2) The competence and procedures of the Arbitration Tribunal for Energy
shall be governed by Act LXXI of 1994 on Arbitration (hereinafter referred to as:
Vbt.) subject to the derogations set out in paragraphs (3) to (6).
(3) The Arbitration Tribunal for Energy shall hear the legal disputes between
authorised operators engaged in activities which are subject to authorisation
under this Act relating to rights and obligations set out in legislation pertaining
to activities governed in this Act, or fixed in contracts under such legislation, if
the parties have entered into an arbitration agreement submitting to binding
arbitration and if they are able to freely dispose over the subject of the
proceeding.
(4) Stipulation of the exclusive jurisdiction of the Arbitration Tribunal for
Energy under this Article shall have no effect on the validity of any stipulation
of the jurisdiction of the Arbitration Tribunal of the Hungarian Chamber of
Commerce and Industry in individual contracts concluded before the entry of
this Act into force. Legal disputes arising in connection with such stipulations
shall remain to be submitted for arbitration to the Arbitration Tribunal of the
Hungarian Chamber of Commerce and Industry, unless there is an agreement
between the parties to the contrary.
(5) Members of the arbitration board of the Arbitration Tribunal for Energy
shall be appointed by the president of the Office for fixed terms. The president
of the Office and other employees of the Office may not be appointed to
participate in the arbitration board of the Arbitration Tribunal for Energy.
(6) The Arbitration Tribunal for Energy shall be vested with legal personality
and shall be seated in Budapest.
(7) The legal personality of the Arbitration Tribunal for Energy shall become
effective as on the day of publication of its charter document in the Official
Gazette. Publication shall be ordered by the Minister upon receipt of notice
from the Arbitration Tribunal for Energy. The charter document must be
attached to said notice.
(8) The Arbitration Tribunal for Energy shall also have authority to conduct
conciliation procedures according to Act LV of 2002 on Mediation.
(9) The charter document of the Arbitration Tribunal for Energy shall specify:
(a) the tribunals organizational structure,
(b) the rules for the appointment of members of the executive panel,
(c) the rules for the tribunals representation,
(d) the functions and powers of the executive panel,
(e) the amount of founders contribution.
(10) The Arbitration Tribunal for Energy shall derive its funding from:
(a) founders contributions,
(b) arbitration tribunal fees,
(c) earnings on assets,
(d) other revenues.
(11) The Arbitration Tribunal for Energy shall consist of the arbitration board,
the executive panel of minimum three and maximum five members selected
from among the board members, and the Financial Department.
(12) The executive panel shall function as the supreme body of the Arbitration
Tribunal for Energy. The rules for the appointment and operation of the

executive panel shall be laid down in the charter document and other codes of
the Arbitration Tribunal for Energy.
(13) The Arbitration Tribunal for Energy shall be represented vis--vis third
parties and in front of the court and other authorities by members of the
executive panel, or by the persons they authorise in accordance with the codes
of the Arbitration Tribunal for Energy.
Chapter XX
AUTHORISATIONS
VET Article 170 (1) The Government is hereby authorised to decree:
1. the maximum amount of fines that may be imposed by the Office pursuant
to this Act,
2. the procedures for authorised operators to handle complaints, and for their
submission by users or household customers,
3. the detailed regulations pertaining to the contents of the Electricity Supply
Codes,
4. the regulations for the formation and operation of regulatory committees,
5. the mandatory content elements of standard service agreements, the
statutory provisions to be included therein and the general requirements
concerning their structure, the provisions relating to public consultation, and
the formal requirements concerning the submission of standard service
agreements,
6. the detailed regulations for legal relationships between providers of
universal services and the users eligible for universal services, and for the
submission by users of notice of their intent to use universal services, as well
as the content and formal requirements for contracts for the purchase of
electricity within the framework of universal services, and the cases of their
termination,
7. detailed regulations for authorisation proceedings, certification procedures
and electronic administration, the formal and content requirements of
applications and the content requirements for the authorisations, the
conditions for engaging in activities which are subject to authorisation, for the
authorisation procedure, for the procedures for the amendment, extension and
revocation of operating licences, and for carrying out authorised activities, and
the rights and obligations of authorised operators, as well as the detailed rules
of the procedure for approval,
8. with the exception of wind turbines, the detailed regulations for the
construction of new generation capacity, including the provisions relating to
the role of power plants with energy storage facilities in the electricity system,
and also their integration into the electricity system, as well as the contents of
the feasibility study, business plan and independent advisors report required
for the construction of a power plant, and the cases where an authorisation is
required for the expansion of a power plant and the conditions for such
expansion,
9. the conditions for issuing a call for tender for the construction of a power
plant or for the implementation of demand-side management measures, or for
network improvement, the minimum content requirements for such tenders
and the rules of tender proceedings,

10. the conditions and procedures for the selection and appointment of a
natural person or economic operator in connection with the maintenance,
repair, upgrading, and development of transmission and distribution networks,
11. the detailed regulations for switching traders,
12. the detailed regulations for the establishment and operation of private
lines and direct lines, and for electricity resale,
13. the conditions for the purchase and sale of electricity by users,
14. the conditions and mandatory content and formal requirements for the
contracts of electricity traders for the sales of electricity,
15. the provisions for the reclassification of direct lines, production lines and
private lines or for declaring such lines to function as a public utility,
16. the regulations for defining the minimum service area in applications for
an authorisation for providing universal services, and the detailed regulations
under which any electricity trader may provide universal services,
17. the detailed regulations for the appointment of another authorised
operator if necessary to secure the uninterrupted supply of electricity or due to
severe and repeated infringement by the transmission system operator,
18. the provisions for the determination of the geographical area of markets
relevant to the identification of significant market power, for the analysis of the
effectiveness of competition, for the identification of authorised operators with
significant market power in markets where there is no effective competition
and for the scope of the obligations referred to in Articles 110 to 111 and the
conditions for their implementation,
19. the rules of installing electronic consumption meters for users, the
introduction of smart metering and the implementation of pilot projects
preparing their introduction, including the information to be determined and
supplied through such pilot projects, and the tasks to be performed in this
respect, the range of models of pilot projects, the tasks to be performed in
order to determine metering and communication requirements, data
processing and data security provisions, the financing, schedule and
evaluation criteria of pilot projects, the tasks of the Office relating to the
supervision of pilot projects, and the rules of introducing smart grids,
20. the detailed regulations relating to the operation and authorisation of the
regulated electricity market, the detailed rules of the tasks, rights and
obligations of the authorised operator of the regulated electricity market in
relation to the physical transactions of trading in electricity, the procedure of
preparing and publishing the regulated electricity market code, and the rules of
the cooperation between the authorised operator of the regulated electricity
market and the transmission system operator,
21. the detailed regulations for the legal relationship between the
transmission system operator and authorised distribution network operators,
and the network users, the contents and the provisions of network connection
agreements, the minimum content and formal requirements for network use
agreements, agreements on membership in the cogeneration balancing group
and contracts for trade, and the cases and legal consequences of breach of
contract,
22. the detailed regulations for the definition and management of the aid for
restructuring the coal industry,
23. the detailed rules governing electricity supply emergencies and
significant malfunctions of the electricity system, the rules and principles of

restrictions to be applied in cases of emergency or significant malfunction, as


well as the rights and obligations of network users, the detailed rules on the
sharing of costs, the procedures for the suspension of contracts concluded for
the supply of users, the maximum price of all products and services, with
either regulated or non-regulated prices, relating to electricity supply,
24. the detailed rules for the certification of origin of electricity produced from
renewable energy sources or waste, or co-generated, for the issuance of such
certificates, the reporting and data disclosure requirements pertaining to the
producers entitled to supply electricity produced from such energy sources,
the detailed regulations concerning green certificates and cogeneration
certificates, and the date on which the green certificate and the cogeneration
certificate system will be introduced,
25. the detailed rules for publishing the Offices resolutions,
26. the detailed rules concerning the obligation of reporting and data
disclosure that are based on Hungarys international commitments and those
that are to be performed to the European Commission,
27. the detailed regulations for the procedure for monitoring compliance with
the provisions of this Act relating to official prices, and for the implementation
of the relevant sanctions,
28. the provisions for managing the financial assets specified in Article 147(1)
of this Act, and for using and making payments from such financial assets in
the case referred to in Article 147(1)(a),
29. the detailed provisions for the purchasing obligation regime designed for
promoting the use of electricity generated from renewable energy sources and
waste, and electricity produced by any other means defined by statutory
provision, in particular for the purchase price of electricity subject to
purchasing obligation, the detailed rules for the settlement of accounts under
the purchasing obligation regime, the detailed regulations for the procurement
of electricity subject to purchasing obligation and on the related purchasing
obligation regime, and the minimum rate of efficiency required for mandatory
procurement relating to the various production procedures, in particular to
electricity produced from biomass,
30. the detailed regulations relating to the authorisation of the construction,
operation, commissioning, continuation or decommissioning of electrical
installations, production lines, private lines and direct lines, the extension of
such authorisations, simplified authorisation proceedings, and to the
establishment, contents, authorisation and termination of rights concerning
third-party properties, the documentary evidence in proof of eligibility for
construction, and to indemnification,
31. the conditions and procedures for the provision of financial guarantees to
be provided to the transmission system operator, the conditions for
determining the rate to be applied and the obligation of the transmission
system operator to supply information concerning the financial guarantee,
32. the minimum content requirements of tenders published for purchasing
electricity to the extent necessary to ensure ancillary services and to make up
for losses in the transmission or distribution networks, and the procedure for
publishing them,
33. the duties conferred upon authorised distribution network operators
concerning the network connection, network use, accounting and registration
of household micro power plants, as well as the responsibilities, rights and

obligations of authorised distribution network operators, electricity traders and


providers of universal services in connection with vulnerable customers, and
the sanctions applicable in the event of any breach of contract on the part of
vulnerable customers,
34. the scope of vulnerable customers and the type of benefits available to
them in addition to what is contained in this Act, the detailed provisions on
providing and claiming these benefits, and on the preferential treatment
provided to disabled consumers, and the type of documents admissible as
evidence to verify eligibility for treatment as vulnerable customers, and the
content and formal requirements for such documents,
35. the detailed regulations concerning the restriction, refusal, suspension or
reduction of network access, the procedures applicable in such cases, and on
giving priority in such cases to electricity generated from renewable energy
sources or from waste, and electricity produced in a cogeneration process,
36. the minimum number of customer service offices to be established in
Budapest consistent with the number of household customers, and the
detailed regulations on the location and operation of customer service offices,
37. the detailed provisions relating to public lighting, and the minimum
content and formal requirements for the contracts between authorised
distribution network operators and persons liable to provide public lighting
services concerning issues relating to the installation and operation of public
light fixtures on the distribution networks supporting structures and other
facilities,
38. the detailed regulations concerning the appointment suppliers of last
resort, on their rights and obligations, and on discharging their
responsibilities,
39. the detailed regulations concerning the compliance program and the
compliance report to be prepared by authorised network operators, the criteria
for the professional competence of the compliance inspector employed by the
transmission system operator, and the detailed rules of the powers and
responsibilities of the compliance inspector
40. the detailed regulations concerning separation rules and the unbundling
of accounts,
41. the designation of technical and safety authorities,
42. in respect of eligibility for purchasing electricity within the framework of
universal service, the scope of central budgetary bodies and institutions
performing public duties, budgetary bodies of local governments performing
public functions, ecclesiastical legal persons performing public functions and
public institutions operated by foundations, which are eligible for public
service under a claim submitted to the provider of universal services,
43. the criteria pertaining to the network development plan,
44. in respect of the electricity system, the criteria for identifying European
and national critical infrastructures, the rules of their designation, the rules of
the protection of sensitive information, contact and reporting obligations, the
procedure of protecting and monitoring designated European critical
infrastructures, as well as the sanctions applicable in the case of the violation
of the relevant provisions,
45. the scope of public institutional users eligible for exemption from
disconnection from electricity supply, the conditions of exception, the detailed

rules of the moratorium, and the rights and obligations of parties subject to
moratorium.
(2) The Minister is hereby authorised to decree:
1. the prices of universal service, price application conditions, the framework
for price regulation, the various product packages provided within the
framework of universal services and the related tariffs, and the itemised initial
tariffs applicable prior to the submission of a proposal for price change by the
provider of universal services,
2. the type of services that may be provided by the authorised distribution
network operator and the provider of universal services upon demand on the
part of users for an extra charge and the fees for such services, the type of
services that may be provided for an extra charge in the case of a breach of
contract by the user and the fees for such services, as well as the type of
services that may be provided by the authorised distribution network operator
to authorised operators for an extra charge and the fees for such services
3.
4. the minimum amount of energy source reserves to be held at power plants
with a nominal generating capacity of 50 MW or more,
5. the detailed regulations concerning the information to be provided to users
during the supply of electricity about the composition of energy sources used
for the production of electricity supplied during the previous calendar year,
and on the environmental impact of these energy sources, and the detailed
rules for the procedure of publication and content of the information and data
to be published by the Office on its homepage concerning the efficient use of
electricity and the benefits of using energy saving appliances,
6. the method for the calculation of the quantity of electricity produced in a
cogeneration process, and the detailed rules for the procedure to verify such
quantities,
7. the methodological framework for data provision in connection with prices
relating to the activities of authorised operators subject to authorisation under
this Act, in particular the grid control activities of transmission system
operators, and in connection with electricity consumption, the scope of data to
be supplied with all personal data removed, the parties subject to the
obligation of disclosure and the parties authorised to have access to such
information, the type of data to be provided by the Office to associations
representing user interests and other organisations and the procedure for their
provision, the scope of data to be published on the Offices official website,
and the detailed rules for the protection of facts, data and information and
know-how which are treated as business secrets in accordance with Article
81(2) of the Civil Code (hereinafter referred to as: business secrets), and the
rules for recognising a payer if other than the user,
8. the rules of access to metering data of users, the format of data, the
procedure of transferring metering data to users and electricity traders,
9. the rules of the procedure of determining energy produced or used from
renewable energy sources and the calculation of its share, and the method of
calculation of the quantity of energy produced or used from renewable energy
sources for each energy source and method of use, in view of the certificate of
origin of electricity generated from energy produced from renewable energy
sources,
10.

11. the basic principles of determining and applying network access fees, the
framework of price regulation, the basic principles of applying network-related
connection charges, the criteria of pricing and the elements of such charges,
12.
13. the rules of the distribution of electricity subject to purchase obligation by
the transmission system operator, and the method of determining the prices
applicable during distribution,
14.
15. the scope of persons eligible for purchasing discount-rate electricity
based on their previous or existing employment in the electricity industry, as
defined in the standard service agreement of the electricity trader, the
discounted price of electricity, and the procedural and accounting rules in
connection with the availability of such discount rate, including verification
obligations,
16. the persons issuing calls for tenders for the establishment of wind
turbines, the rules for issuing such calls for tenders, the minimum content
requirements for such calls for tenders and the rules of tender proceedings,
17. the fundamental conditions for connection to the network,
18. the detailed regulations for the restriction of the selection and use of
certain specific primary energy sources in the authorisation granted for new
generation capacities,
19.
(a) in cooperation with the Minister in charge of Environmental Protection, the
minimum energy efficiency requirements for power plants for the various types
of primary energy sources,
(b) in agreement with the Minister in charge of Tax Policy, the amounts of
administrative service fees payable to the Hungarian Energy Office in
connection with proceedings opened upon request, and the detailed
regulations on the collection, management, registration and reimbursement of
fees and other revenues,
(c) in agreement with the Minister in charge of Transportation, the Minister in
charge of Water Management, the Minister in charge of Regional Development
and the Minister in charge of Land Use Planning, the manner in which
authorised network operators may converge on and cross other utility lines,
rivers, watercourses, lakes, canals and buildings pursuant to their cable rights,
(d) in agreement with the Minister in charge of Tax Policy, the amount of the
administrative service fee, and the detailed regulations for the payment of fees
and other revenues.
(3) The Minister in charge of Industry is hereby authorised to decree:
1. the rules of the technical safety certification, conformity assessment,
placing on the market and commissioning of interconnectors, customer
connection systems, consumer equipment, and electric equipment and
protection systems operating in potentially explosive environments,
2. the qualifications and experience necessary for filling posts significant
from the aspect of technical safety,
3. technical and safety requirements for electrical installations and producer,
private or direct lines,
4. in agreement with the Minister in charge of Tax Policy, the amount of the
fee payable for procedures of the technical safety authority, including the fee

of legal remedy, as well as the detailed rules of the collection, management,


registration and reimbursement of such fees,
5. the regulations relating to safety zones surrounding electrical installations,
production lines, private lines and direct lines, as well as any bans and
restrictions to be enforced in the safety zone, and the type of transformer and
switching equipment which may be installed under cable rights.
(4) The Minister in charge of Energy Policy is hereby authorised to decree in
agreement with the Minister in charge of Accounting and the Minister in charge
of Consumer Protection the invoice form to be applied by providers of
universal services.
Chapter XXI
TRANSITORY PROVISIONS
VET Article 171 (1) Insofar as the authorised producers whose authorisation
was issued in accordance with Act CX of 2001 on Electrical Energy for their
power plants operating at the time of this Act entering into force wish to renew
their authorisation when the validity date thereof expires, they shall be liable to
comply with the minimum energy efficiency requirements prescribed in
specific other legislation for the various types of primary energy sources as of
1 January 2015. With a view to ensuring the security of supply in case of a
threat thereto, the Office may in due observation of the provisions of specific
other legislation authorise the extension of the operating licence of power
plants which are unable to satisfy the minimum energy efficiency
requirements, for the projected duration of said threat.
(2) Introduction of the purchasing obligation regime according to Article 9 of
this Act shall have no effect on the rights to support afforded under Act CX of
2001 on Electrical Energy and under specific other legislation on the
purchasing obligation regime for the procurement of electricity, nor shall it
effect the quantity of electricity prescribed in the Offices resolutions for
mandatory procurement, the duration of procurement, and the purchase price
subject to purchasing obligation under such resolutions, corresponding to the
maximum purchase price as governed in Act CX of 2001 on Electrical Energy
and defined in accordance with paragraphs (3) to (4) below.
(3) The maximum initial purchase price of electricity produced from
renewable energy sources that is subject to purchasing obligation according to
Article 11(1)(b) shall be k*24.71 HUF/kWh.
(4) The value assigned to the factor k referred to in paragraph (3) as of 1
January 2008 shall be the consumer price index last published by the
Hungarian Central Statistical Office in 2007 relative to the same period in 2006.
Thereafter, k shall be calculated for subsequent calendar years to take effect
upon the first day of each year by multiplying the value of k in effect for the
same time period of the previous year by the official price index published by
the Central Statistical Office for the year before 1 January of the current year.
(5)
(5a) to (5c)
(5d)
(5e)
(5f) Resolutions issued under paragraph (5) shall be repealed on 1 July 2011.

(5g) Article 171(5a) of this Act, as set forth by Act XXIX of 2011 on the
Amendment of Certain Acts on Energy, shall also apply in cases in progress on
the date of the entry into force thereof.
(5h) The sales rights governed by the official resolution pertaining to the
sales of electricity cogenerated with heat under a purchasing obligation regime
and determining the quantity of electricity subject to purchase obligation and
the duration of the purchase obligation, as issued under specific legislation on
the mandatory purchase and purchase price of electricity produced from
renewable energy source or waste, and electricity produced in a cogeneration
process issued under Article 11(3) of this Act in force prior to the entry into
force of Article 11(3) as set forth by Act XXIX of 2011 on the Amendment of
Certain Acts on Energy, and under the authorisation of this Act, shall terminate
as of 1 July 2011, except for the sales rights relating to cogenerated electricity
produced from renewable energy source or waste.
(6) The sales rights which are not subject to the official resolution
determining the quantity of electricity subject to purchase obligation and the
duration of the purchase obligation for selling electricity produced by the
authorised operators of power plants using biomass as a primary energy
source, authorised by the Office for the first time before the entry into force of
Act LXXIX of 2005 on the Amendment of Act CX of 2001 on Electrical Energy,
under a purchase obligation regime shall terminate as of 31 December 2010. At
the request of the authorised operator referred to in this paragraph the Office
shall review the rate of return on the investment. If the investment has not been
recovered the Office may extend the duration of purchasing obligation while
leaving all other conditions for procurement intact for no longer than until the
time the investment is recovered. At the request of an electricity producer
using at least 90% biomass as a primary energy source, having an installed
capacity of less than 50 MW and authorised by the Office for the first time prior
to the entry into force of Act LXXIX of 2005 on the Amendment of Act CX of
2001 on Electrical Energy, the Office shall extend the duration of the purchase
obligation by at least 15 years from the commencement of the commercial
operation. If the duration of the purchasing obligation is extended under this
paragraph, the producer and the transmission system operator shall conclude
an agreement until 30 April 2010 at the latest on the purchase obligation for the
period of extension specified by the Office and in accordance with the
conditions laid down in this Act and in specific other legislation.
(7)
(8) When the conditions required are deemed satisfied, the Government shall
adopt a decision to abolish the purchasing obligation regime specified in
Article 9, and replace it with a green certificate scheme specified in specific
other legislation. The Governments decision concerning the introduction of
the green certificate scheme under this paragraph shall not concern the
quantity of electricity subject to purchasing obligation and the duration of the
purchasing obligation as specified in Office resolutions adopted before the
said Government decision was made, or the purchase price prescribed in this
Act and specific other legislation adopted under authorisation by this Act for
electricity subject to purchasing obligation under such resolutions, or the
validity of the agreements referred to in paragraph (6).
(9) The date of introduction shall be determined in consideration of the
following factors:

(a) the generation capacity of power plants using renewable energy sources
and waste as a source of energy, as to whether the green certificates they will
be able to issue will ensure appropriate supply for the purchasers of electricity,
and
(b) international experience in connection with green certificate schemes.
(10) The Office shall report to the Government every two years concerning
the status of the conditions referred to in paragraph (9).
(11) In addition to the purchase obligation regime referred to in Article 9 the
Government shall upon the proposal of the Office adopt a decision on the
introduction of a cogeneration certificate scheme as specified in specific other
legislation. The Office shall make a proposal to the Government on the
regulation of the cogeneration certificate scheme until 1 September 2011. The
Governments decision concerning the introduction of the cogeneration
certificate scheme under this paragraph shall not concern the quantity of
electricity subject to purchasing obligation and the duration of the purchasing
obligation as specified in Office resolutions adopted before the said
Government decision was made, or the validity of the agreements referred to in
paragraph (5).
(12) Following the introduction of the scheme of green and cogeneration
certificates, electricity traders, authorised producers supplying electricity
directly to users, and users engaged in the importation of electricity shall be
required to obtain green and cogeneration certificates consistent with the
electricity generation capacity specified in specific other legislation.
(13) Following the European Commissions approval of a particular mining
operator, compensation may be provided for aid for restructuring the coal
industry up to the extent approved for the mining operator in question until 31
December 2018.
(14) The amount of aid for restructuring the coal industry that may be paid
under paragraph (13) shall be determined in specific other legislation in
accordance with Council Decision 2010/787/EU of 10 December 2010 on State
aid to facilitate the closure of uncompetitive coal mines.
(15) The authorised operators referred to in Article 92(4) shall be required to
terminate their control contracts concluded before the time of this Act entering
into force by 30 June 2008; in the event of non-compliance the parties affected
shall not be able to exercise the rights and discharge the obligations
originating from such control contracts.
VET Article 171/A (1) The transmission system operator shall operate a
balancing group from 1 July 2011 for the purchase, balancing, sales and
accounting of electricity produced in a cogeneration process in power plants
with a nominal generating capacity of less than 50 MW (hereinafter referred to
as: cogeneration balancing group) in accordance with the Commercial Code
and its standard service agreement.
(2) A producer of electricity produced in a cogeneration process in a power
plant with a nominal generating capacity of less than 50 MW shall make a
statement to the transmission system operator within four days of the entry
into force of this Article, in which it shall declare whether it intends to become
a member of the cogeneration balancing group, if
(a) it was a member of the balancing group set up for the accounting of
electricity subject to purchase obligation on 1 June 2011 (even if its
membership was suspended), and

(b) its eligibility for sales within the framework of the purchasing obligation
regime
(ba) was extended until 30 June 2011 under Article 171(5a), or
(bb) terminates as of 1 July 2011 under Article 171(5f) and (5h).
(3) If the producer meets the criteria referred to in paragraph (2), the
transmission system operator shall conclude an agreement with the producer
within seven days of the entry into force of this Article on membership and
sales in the cogeneration balancing group (hereinafter referred to as:
membership agreement) in accordance with its standard service agreement.
The producer shall become a member of the cogeneration balancing group
(hereinafter referred to as: cogeneration balancing group member) from the
day on which the membership agreement enters into force, and shall from that
date on be entitled to sell electricity in the cogeneration balancing group in
accordance with the membership agreement. If the membership agreement
terminates, a new one shall not be concluded.
(4) The sample of the membership agreement shall be included in the
standard service agreement of the transmission system operator. Within two
days of the entry into force of this Article the transmission system operator
shall send the amendment of its standard service agreement concerning the
operation of the cogeneration balancing group, in particular the sample of the
membership agreement, to the Office for approval.
(5) The transmission system operator shall inform the Office about the
conclusion of membership agreements until 15 July 2011.
(6) In respect of the sales of electricity, the membership agreement shall
contain
(a) the method and form of sales according to the current product structure
of the regulated electricity market, taking into account the Regulated Electricity
Market Code, and the rules of procedure and responsibilities between the
parties in respect of sales,
(b) the transfer prices of purchased electricity,
(c) the accounting of the balancing supply within the cogeneration balancing
group according to the Commercial Code,
(d) the procedure of the payment, management and accounting of fees
relating to trade on the regulated electricity market, and
(e) the procedure of the accounting of other justified costs of the
transmission system operator relating to the operation of the cogeneration
balancing group.
(7) The cogeneration balancing group member
(a) shall not sell electricity to another balancing group through its metering
point in the cogeneration balancing group, and
(b) shall pay the costs relating to the sales of electricity and the operation of
the cogeneration balancing group.
(8) If a cogeneration balancing group member fails to fulfil any of its
obligations referred to in paragraph (7), or fails to comply with the membership
agreement, the transmission system operator with due consideration of the
provisions of the Commercial Code pertaining to switching between balancing
groups shall cancel the membership agreement.
(9) In accordance with the Commercial Code and the standard service
agreement the transmission system operator
(a) shall balance the cogeneration balancing group,

(b) shall, in accordance with the membership agreement, sell the electricity
purchased from cogeneration balancing group members according to a
schedule on the regulated electricity market in which it has a share, and
(c) shall account for the consideration of the electricity purchased from
cogeneration balancing group members on a monthly basis according to the
transfer prices of the regulated electricity market, the fees relating to trading
on the regulated electricity market, and the costs of balancing the balancing
group.
(10) In order to sell the electricity purchased from cogeneration balancing
group members, the authorised operator of the regulated electricity market
referred to in point (b) of paragraph (9) shall conclude an agreement with the
transmission system operator on participation in trading (hereinafter referred
to as: trading agreement).
(11) The financial assets gained from the operation of the cogeneration
balancing group shall not be considered as the revenue of the transmission
system operator, the transmission system operator shall not use them for
purposes other than the operation of the system, and shall keep them on
separate accounts, detached from other financial assets and from each other.
The transmission system operator shall be required to show the financial
assets held on the said separate accounts, including their net proceeds minus
handling charges, under liabilities.
(12) The transmission system operator shall perform its activities referred to
in this Article on a non-profit basis.
VET Article 172 (1) In connection with public utility transmission and
distribution lines, supporting structures, and transformer and switching
equipment constructed and commissioned on third-party properties at least
ten years before the submission of the application, if cable rights for their
construction had not been granted, or the authorisation for cable rights cannot
be located, or if the cable rights had not been registered in the real estate
register, the authorised network operator affected may apply within five years
from the time of this Act entering into force to the Authority referred to in
Article 116 to grant the said cable rights or to issue a resolution suitable for the
registration of said cable rights. The aforesaid resolution shall declare the
existence of cable rights and shall indicate the date when they were granted.
The cable rights may be registered in the real estate register based on the final
resolution of the Authority referred to in Article 116.
(2) The Authority shall send a copy of its final resolution to the real estate
authority for the registration of cable rights in the real estate register. Where
cable rights are limited to certain sections of the property only, a diagrammatic
plan showing the property section affected and containing the seal of approval
of the real estate authority shall be attached as well.
(3) The granting and subsequent registration of the cable rights shall not
constitute any additional right and obligation in connection with the property to
which they pertain, meaning that they will not serve grounds for claiming any
compensation, among others.
VET Article 173 (1) In connection with public utility transmission and
distribution lines, supporting structures, and transformer and switching
equipment constructed and commissioned on third-party properties with cable
rights at least ten years before the submission of the application, if the cable
rights had not been registered in the real estate register, the authorised

network operator affected may apply within five years from the time of this
Act entering into force to the Authority referred to in Article 116 for a
simplified operating permit. The cable rights may be registered in the real
estate register based on the final simplified permit of the Authority referred to
in Article 116.
(2) The Authority shall send a copy of its final simplified operating permit to
the real estate authority for the registration of cable rights in the real estate
register. Where cable rights are limited to certain sections of the property only,
a diagrammatic plan showing the property section affected and containing the
seal of approval of the real estate authority shall be attached as well.
(3) The simplified operating permit or subsequent registration of the cable
rights shall not constitute any additional right and obligation in connection
with the property to which it pertains, meaning that it will not serve grounds for
claiming any compensation, among others.
(4) The authorised network operator may exercise its rights referred to in
Article 124(2) on the basis of its final cable rights or final operating permit
issued before 1 October 2011.
VET Article 174 (1) Interconnectors constructed before the entry into force of
Article 116(3)(d) of this Act, as set forth by Act XXIX of 2011 on the Amendment
of Certain Acts on Energy shall be legally maintained with the stipulation that
such interconnectors shall be subject to
(a) the provisions on the operating permit procedure, if they were built during
the 90 days preceding the entry into force of Article 116(3)(d) of this Act, as set
forth by Act XXIX of 2011 on the Amendment of Certain Acts on Energy, and
(b) the provisions of this Act, and of the government decree on authority
licensing procedures for the construction of electricity facilities, if they were
built prior to the 90 days preceding the entry into force of Article 116(3)(d) of
this Act, as set forth by Act XXIX of 2011 on the Amendment of Certain Acts on
Energy.
(2) The transmission system operator shall submit the network development
plan referred to in Article 25(4), as set forth by Act XXIX of 2011 on the
Amendment of Certain Acts on Energy, to the Office for approval until 1
October 2011 for the first time. The Office shall prepare the evaluation referred
to in Article 25(6), as set forth by Act XXIX of 2011 on the Amendment of
Certain Acts on Energy, until 30 June 2012 for the first time.
(3) The balance on the day of the entry into force of this Act of the separate
account opened by the transmission system operator for managing the
financial assets collected as a part of the grid control fee for the
reimbursement of the transition costs under Article 98(1) of Act CX of 2001 on
Electricity may be accounted for by the transmission system operator as
income. This income shall be deducted from the transmission grid control fee.
(4) The amount of the financial assets referred to in Article 147(1), and any
changes therein shall be defined in the budget act, except for the financial
assets referred to in Article 148(4).
VET Article 175 (1) The Office shall prepare the revision referred to in Article
11/A(1) until 30 June 2013 for the first time.
(2) The Office shall analyse the electricity market in the second year following
the effective dates of the resolutions adopted in the market analysis and
market surveillance proceedings conducted under Articles 107 to 112 of this
Act, but until 31 December 2010 at the latest, with particular regard to the

market surveillance proceedings completed, to the findings of such


proceedings and the obligations imposed, and their impact on competition.
The Office shall convey its findings to the Government in a report for the
Government to deliberate the course of any further action that may be required
in terms of legislation to promote effective competition on the electricity
market.
VET Article 176 (1) In the public utility contracts of users eligible for universal
services the public utility service providers shall, on the basis of applications
submitted according to Article 178(1)(c), be replaced by providers of universal
services subject to authorisation for providing universal services under
Article 90 who are required to provide universal services in the service area
specified in the operating licences of public utility service providers authorised
under Act CX of 2001 on Electrical Energy.
(2) In the public utility contracts of users who are eligible for public utility
services under Act CX of 2001 on Electrical Energy, but are not eligible for
universal services under this Act, the public utility service providers shall be
replaced by electricity traders who supply electricity in the service area
specified in the operating licences of public utility service providers authorised
under Act CX of 2001 on Electrical Energy, if:
(a) the public utility service provider is in the same service area with a
provider of universal services in one business association,
(b) the public utility service provider also has an authorisation to engage in
trading in electricity in addition to the authorisation to provide universal
services.
(3) As regards users who do not have separate written contracts for network
access and contracts for the purchase of electricity on 1 October 2011, the
authorised operators and users concerned shall conclude new contracts in
writing by 31 December 2014 in compliance with the provisions laid down in
this Act and in the Vhr, following the schedule laid down in the Vhr.
(3a) The authorised operator concerned shall, through the means specified in
its standard service agreement, send the contracts to all users who have not
concluded a written contract until that particular date, and it shall at the same
time inform users about the legal consequences of the failure of concluding a
written contract. The Office shall monitor compliance with the provisions of
this paragraph and paragraph (3) through the means and at the frequency
specified in the Vhr., and may impose penalties under Article 96 in case of noncompliance.
(4) Where after the time of this Act entering into force some provisions of the
public utility contracts that remain in force until the new contracts under
paragraph (3) are concluded are incompatible with the provisions of this Act,
then the provisions of this Act and relevant legislation, and the provisions of
the Electricity Supply Codes and standard service agreements of the
authorised operators concerned shall be applied instead of such incompatible
provisions of the public utility contracts.
(5) For the purposes of this Article, a public utility contract shall mean a
contract concluded by a user eligible for public utility services under Act CX of
2001 on Electrical Energy, and by a public utility service provider authorised
under Act CX of 2001 on Electrical Energy for the supply of electricity regarded
as a public utility service under Act CX of 2001 on Electrical Energy.
(6)

VET Article 176/A The authorised network operator shall fulfil the obligation
stipulated in Article 43(1), as amended by Act XXIX of 2011 on the Amendment
of Certain Acts on Energy, concerning the collection of metering data being the
basis of billing electricity consumption and the identity of the quantities being
the basis of the settlement of accounts, and the information obligation laid
down in Article 44, as amended by Act XXIX of 2011 on the Amendment of
Certain Acts on Energy, concerning the initial and final meter index until 1
October 2011 at the latest.
Vhr. Article 119
VET Article 177 (1) If the user has connected to the transmission network
prior to 1 October 2011, the voltage level limitation referred to in Article 27(3b),
as set forth by Act XXIX of 2011 on the Amendment of Certain Acts on Energy,
shall not apply to the connection point.
(2) If the household customers payment is late at the time of the entry into
force of Article 47(7)(a) as set forth by Act XXIX of 2011 on the Amendment of
Certain Acts on Energy, the provisions of this Act in force at the due date of
payment shall apply to disconnection from supply.
(3) If the conditions of disconnecting a vulnerable customer laid down in
Article 64(5), as set forth by Act XXIX of 2011 on the Amendment of Certain
Acts on Energy, apply at the time of the entry into force of that paragraph, the
provisions of this Act in force at the due date of payment shall apply to
disconnection from supply.
(4) Article 63(3) of this Act, as set forth by Act XXIX of 2011 on the
Amendment of Certain Acts on Energy, shall apply to limitation periods
commencing after the entry into force thereof.
Article 177/A (1) In order to provide a basis for the introduction of smart
metering systems and the relevant evaluation showing long-term costs and
benefits to be carried out until 3 September 2012, the authorised network
operators may implement pilot projects concerning smart metering.
(2) Users shall cooperate in the implementation of the pilot projects referred
to in paragraph (1), and shall tolerate the installation of metering equipment
ensuring the technical conditions of the pilot projects. Within the framework of
said cooperation the authorised network operators shall provide information
on the pilot project to the users concerned.
(3) The authorised network operator shall not cause the users to incur any
cost or damage through the implementation of the pilot project, shall not
impose any charge, and shall not influence the users rights and obligations
arising from the contract for the purchase of electricity to the detriment of the
user.
(4) If the user fails to fulfil his obligation referred to in paragraph (2), the
authorised network operator shall proceed in accordance with the provisions
of Article 33/A.
(5) The authorised network operator shall implement the pilot project in
accordance with the law on smart metering and under the supervision of the
Office. Prior to the commencement of the pilot project the authorised network
operator shall inform the Office by presenting a description of the pilot project,
and shall inform the Office following the completion of the pilot project by
presenting the documents containing the results of the pilot project and the
findings based on such results.
VET Article 178 (1)

(2) The effect of combined micro power plant authorisations, operating


licences for the generation of electricity, distribution network authorisations,
and authorisations to engage in trading in electricity issued in accordance with
Act CX of 2001 on Electrical Energy shall not be affected by the entry of this
Act into force.
(3) Authorisation procedures launched prior to 1 October 2011 shall be
conducted pursuant to the provisions of this Act as set forth by Act XXIX of
2011 on the Amendment of Certain Acts on Energy, with the stipulation that the
Office shall not request a repeated submission of documents that are already
available.
(4) to (5)
(6) Pursuant to Article 43(2) of Act CX of 2001 on Electrical Energy, the
contracts between authorised public utility suppliers and public utility
wholesalers, and the contracts concluded under Article 43(5) and Article 45(4)
of Act CX of 2001 on Electrical Energy for contracted capacity and
procurement of electricity under purchasing obligation shall be terminated,
unless the contracted parties agree otherwise before the time of this Act
entering into force.
(7)
VET Article 178/A (1) Authorised operators holding an authorisation for
transmission system control on 3 September 2009 shall initiate a certification
procedure with the Office until 31 May 2011.
(2) In the application the applicant shall evidence and present in detail the
way in which it will comply with the separation rules applicable to the
transmission system operator from 3 March 2012 at the latest.
(3) The transmission system operator shall lodge an application for a new
authorisation for transmission system control within 30 days after the delivery
of the resolution on successful certification, and shall at the same time submit
its compliance program and standard service agreement for approval.
(4) During the fulfilment of the obligations set forth in paragraphs (1) and (3)
the applicant shall not be exempted from the payment of administrative service
fees, with the stipulation that the amount of the administrative service fee
payable for the adjudgement of the application for a certification procedure
shall be equal to the fee payable for the adjudgement of the application for an
operating licence for transmission system control.
(5) The transmission system control operating licence of the transmission
system operator in effect at the time of the entry into force of Act XXIX of 2011
on the Amendment of Certain Acts on Energy shall remain effective until the
delivery of the operating licence issued under the provisions of this Act as
amended by Act XXIX of 2011 on the Amendment of Certain Acts on Energy or
until the date on which the resolution of the Office on the withdrawal of the
effective operating licence becomes final. Until that time the rules applicable to
the transmission system operator shall be governed by the provisions
pertaining to said rules as laid down in the transmission system control
operating licence and in the laws on the basis of which it was issued.
VET Article 178/B (1) The Office shall determine the network access fees and
the network-related connection charges, and the conditions for their
application, with effect from 1 January 2012 for the first time, according to the
methodological guide on the regulation of electricity network access fees

issued by the Office prior to the entry into force of Act XXIX of 2011 on the
Amendment of Certain Acts on Energy for the period between 2009 and 2012.
(2) The Office shall carry out the cost revision referred to in Article 142/A(1),
as set forth by Act XXIX of 2011 on the Amendment of Certain Acts on Energy,
until 31 December 2012 for the first time.
(3) to (7)
VET Article 178/C As regards resolutions of the Office issued in accordance
with the provisions of this Act for the determination of the quantity and
duration of the purchasing obligation, the provisions of Article 91(1) and (4)
shall apply, if, after the date on which such resolutions become final, the
producer has not commenced its commercial operation on the date set forth in
the resolutions. The provision above shall not apply to resolutions adopted
under Article 171(6) of this Act concerning the extension of the duration of the
purchasing obligation.
VET Article 178/D Sales rights within the framework of the cogeneration
balancing group under Article 171/A of the VET shall terminate on 30 June
2012. As regards the settlement of accounts relating to the termination of sales
rights in the cogeneration balancing group the provisions of Article 171/A shall
apply.
VET Article 178/E (1) As regards the operation of private lines established
prior to 1 October 2011, the provisions of this Act as set forth by Act XXIX of
2011 on the Amendment of Certain Acts on Energy shall apply. Authorisations
for the establishment, operation, capacity modification and the suspension of
the operation of private lines issued prior to the entry into force of Article
74(1)(h), as set forth by Act XXIX of 2011 on the Amendment of Certain Acts on
Energy, and simplified authorisations for trading in electricity issued before
Article 88(4) is repealed by Act XXIX of 2011 on the Amendment of Certain Acts
on Energy shall remain in force until the date indicated in such authorisations.
(2) The owners of private lines established before the entry into force of Act
XXIX of 2011 on the Amendment of Certain Acts on Energy shall fulfil the
obligations laid down in Article 39(3) and Article 66/A(1), as set forth by Act
XXIX of 2011 on the Amendment of Certain Acts on Energy, until 31 December
2011 at the latest.
(3) The entitlement to the resale and purchase of electricity through private
lines which were not subject to authorisation before the entry into force of
Articles 66 to 66/A, as set forth by Act XXIX of 2011 on the Amendment of
Certain Acts on Energy, and which existed on 1 October 2011 shall be legally
maintained, with the stipulation that the provisions of this Act, as set forth by
Act XXIX of 2011 on the Amendment of Certain Acts on Energy, shall apply to
the conditions of resale or purchase.
(4) As regards the operation of lines established prior to 1 October 2011 and
qualified as direct lines, the provisions of this Act as set forth by Act XXIX of
2011 on the Amendment of Certain Acts on Energy shall apply, with the
stipulation that authorisations issued before 1 October 2011 for the
establishment of private lines under Article 74(1)(i) of this Act shall remain in
force.
(5) The authorised operator of a direct line, who established the direct line
before 1 October 2011 under Article 74(1)(i) of this Act, shall, if any purchaser
connecting to the private line is connected directly to the public utility system
as well, conclude an agreement with the authorised network operator under

Article 38(3) of this Act, as set forth by Act XXIX of 2011 on the Amendment of
Certain Acts on Energy, and shall submit the agreement to the Office until 31
December 2011 at the latest.
VET Article 178/F (1) No further operating licence for the regulated electricity
market shall be issued after the entry into force of Article 76(1)(c) of this Act,
until the withdrawal of issued and effective licences.
(2) The provisions of this Act which pertain to the regulated electricity
market, the operating licence for the regulated electricity market and the
authorised operator of the regulated electricity market, and which enter into
force at the same time as Article 76(1)(c) shall apply to ongoing cases as well.
Transitory Provisions
Vhr. Article 120 (1) The provider of universal services shall publish the rules of
procedure for the conclusion of written contracts for the purchase of electricity as
referred to in Article 176(3) of the VET on its homepage and at its customer service
offices within 30 days after the Office has approved the sample of the universal
service agreement constituting a part of the standard service agreement. The
information published shall also contain the following:
(a) the fact that a written contract for the purchase of electricity must be concluded
until 31 December 2014 with users who have not concluded such a contract,
(b) the manner in which written contracts for the purchase of electricity can be
concluded,
(c) the documents and data necessary for the conclusion of the written contract for
the purchase of electricity,
(d) information on the possibilities to purchase electricity from another electricity
trader or provider of universal services, and
(e) information on the availability of the standard service agreement containing the
general contractual terms and conditions.
(2) The provider of universal services shall offer the conclusion of a new contract
for users who have not concluded a written contract for the purchase of electricity
(a) in the case of personal administration concerning any matter at the customer
service office of the provider of universal services, and
(b) in the manner specified in the standard service agreement.
(3) In the case of personal administration the user referred to in paragraph (2) shall
be informed in the manner specified in the standard service agreement about the
obligation to conclude a written contract for the purchase of electricity, and about the
provisions of points (a) to (e) of paragraph (1). If the user does not sign the universal
service agreement at the customer service office, the user shall be given two copies
of the draft contract signed by the provider of universal services, to which a pre-paid
return envelope shall be attached.
(4) In the case of the offer referred to in point (b) of paragraph (2), at least one but
not more than two months before sending the draft contract to the user, the provider
of universal services shall inform the user who has not concluded a written contract
for the purchase of electricity about the obligation to conclude a written contract in the
manner specified in the standard service agreement. In addition to the data referred
to in points (a) to (e) of paragraph (1), the information shall contain the date on which
the draft contract is sent.
(5) In the case referred to in paragraph (4) the provider of universal services shall,
in the manner specified in the standard service agreement, send two signed copies of
the draft contract corresponding to the sample contract contained in the standard

service agreement to the user who has not concluded a written contract. The draft
contract shall be accompanied by information containing the data referred to in points
(a) to (e) of paragraph (1), and a pre-paid return envelope.
(6) The provider of universal services shall keep an up-to-date register on users
who have concluded a written universal service agreement.
(7) The provider of universal services shall ensure that the percentage of users who
have concluded a written universal service agreement will reach 40% until 31
December 2012, and 80% until 31 December 2013, as compared to the total number
of users.
Vhr. Article 120/A (1) The authorised distribution network operator shall publish
the rules of procedure for the conclusion of written network use agreements as
referred to in Article 176(3) of the VET on its homepage and at its customer service
offices within 30 days after the Office has approved the sample of the network use
agreement constituting a part of the standard service agreement. The information
shall also contain the following:
(a) the fact that a written network use agreement must be concluded until 31
December 2014 with users who have not concluded such an agreement,
(b) the manner in which written network use agreements can be concluded,
(c) the documents and data necessary for the conclusion of the written network use
agreement, and
(d) information on the availability of the standard service agreement containing the
general contractual terms and conditions.
(2) The authorised distribution network operator shall offer the conclusion of an
agreement for users who have not concluded a written network use agreement
(a) in the case of personal administration concerning any matter at the customer
service office of the authorised distribution network operator, and
(b) in the manner specified in the standard service agreement.
(3) In the case of personal administration the user referred to in paragraph (2) shall
be informed in the manner specified in the standard service agreement about the
obligation to conclude a written network use agreement, and about the provisions of
points (a) to (d) of paragraph (1). If the user does not sign the network use
agreement at the customer service office, the user shall be given two copies of the
draft contract signed by the authorised distribution network operator, to which a prepaid return envelope shall be attached.
(4) In the case of the offer referred to in point (b) of paragraph (2), at least one but
not more than two months before sending the draft contract to the user, the
authorised distribution network operator shall inform the user who has not concluded
a written network use agreement about the obligation to conclude a written
agreement in the manner specified in the standard service agreement. In addition to
the data referred to in points (a) to (d) of paragraph (1), the information shall contain
the date on which the draft contract is sent.
(5) In the case referred to in paragraph (4) the authorised distribution network
operator shall, in the manner specified in the standard service agreement, send two
signed copies of the draft contract corresponding to the sample contract contained in
the standard service agreement to the user who has not concluded a written
agreement. The draft contract shall be accompanied by information containing the
data referred to in points (a) to (d) of paragraph (1), and a pre-paid return envelope.
(6) The authorised distribution network operator shall keep an up-to-date register
on users who have concluded a written network use agreement.

(7) The authorised distribution network operator shall ensure that the percentage of
users who have concluded a written network use agreement will reach 40% until 31
December 2012, and 80% until 31 December 2013, as compared to the total number
of users.
Vhr. Article 121 As regards persons eligible for resale under Article 178/E(3) of the
VET, the provisions of the VET and this Decree pertaining to authorised operators of
private lines shall apply.
Vhr. Article 122 Users engaged in resale prior to the entry into force of this Decree
shall fulfil their obligation to provide information under Article 38(2) within 60 days
after the entry into force of this Decree.
Vhr. Article 123 Authorised operators required to prepare a standard service
agreement shall revise their standard service agreements in accordance with the
provisions of the VET and this Decree as set forth by Government Decree No
378/2011 (XII.31.) on the amendment of certain government decrees on electricity
and gas supply and district heating, and shall submit them to the Office for approval
until 29 February 2012.
Vhr. Article 124 to 126
Vhr. Article 126/A Authorised network operators shall conduct the selection
procedure referred to in Article 88(5) of this Decree, as inserted by Government
Decree No 75/2011 (V.2.) on the amendment of certain government decrees on
energy, and submit their applications for the preliminary approval of outsourcing to
the Office until 4 April 2014 for the first time.
Vhr. Article 127
Vhr. Article 127/A Authorised distribution network operators shall submit their upto-date compliance programs referred to in Article 94(1) of this Decree, as set forth
by Government Decree No 75/2011 (V.2.) on the amendment of certain government
decrees on energy, to the Office for approval until 30 September 2015 for the first
time.
Vhr. Article 128 Article 28(5) of this Decree as inserted by Article 6 of
Government Decree No 116/2010 (IV.15.) on the amendment of certain government
decrees on energy (hereinafter referred to as: R.) shall apply to ongoing cases as
well, with the stipulation that the 15-day time limit shall begin on the date of the entry
into force of Article 6 of the R.
ENACTING PROVISIONS
VET Article 179 (1) This Act, subject to the exceptions set out in paragraphs
(2) to (3), shall enter into force on 15 October 2007.
(2) Article 182 of this Act shall enter into force on the 8th day following
promulgation.
(3) Articles 1 to 105, 107 to 177, 178(4) and (6), 181 and 183 of this Act shall
enter into force on 1 January 2008.
Final Provisions
Article Vhr. 129 (1) This Decree subject to the exception set forth in paragraph
(2) shall enter into force on 1 January 2008.
(2) Article 23(12) of this Decree shall enter into force on 1 May 2008.
Chapter XXII

AMENDED LEGISLATION
VET Article 180 Point 8.28 of Annex 1 to Act CXVII of 1995 on Personal
Income Tax shall be replaced by the following provision:
[8. The following benefits in kind shall be tax-exempt:]
8.28. the benefit provided in the form of the difference between the price, as
calculated at the general retail consumer rates laid down in the standard
service agreement of the provider of universal services, of electricity
purchased in accordance with specific other legislation by persons falling
under the scope defined in specific other legislation adopted under the
authorisation of the Act on Electrical Energy on the basis of their current or
prior employment in the electricity sector, and the value calculated on the
basis of the preferential price at which electricity is sold to such private
individuals as laid down in the standard service agreement of the provider of
universal services in accordance with the provisions of specific other
legislation.
VET Article 181 (1) The following point (e) shall be inserted into Article 1(2) of
Act LXXXVII of 1990 on Price Setting (hereinafter referred to as: rtv.):
[The scope of this Act shall not cover:]
(e) the prices of products or services covered by Act LXXXVI of 2007 on
Electrical Energy.
(2) Article 17(4) of the rtv. shall be replaced by the following provision:
Article 17 (4) In respect of the products or services falling within the
competence as a price authority of the minister for energy policy and covered
by the Act on Natural Gas Supply the activities referred to in Article 16 shall be
performed by the Hungarian Energy Office instead of the entity determining the
official price. The relevant procedures shall be governed by the provisions of
the Act on Electrical Energy.
(3)(4)
VET Article 182 (1) Article 52(3) of Act XLII of 2003 on Natural Gas Supply
shall be replaced by the following provision:
(3) Where a participating interest is acquired, directly or indirectly, in an
authorised operator, reaching five per cent of its capital, and all subsequent
direct or indirect acquisitions of interest in five per cent stages (ten, fifteen,
twenty, etc.), it shall be notified by the acquiring party without delay to the
Office, and the Office shall confirm acknowledgement. The provisions of Act
CXX of 2001 on the Capital Market shall apply to acquisitions and to their
extent, to persons acting in concert, and to the content of the notification as
appropriate. The prior resolution of approval of the Office shall be required for
the acquisition of control of more than 25, 50 or 75 per cent of the voting rights
and for the exercise of the rights associated therewith. An application for
registration in the company register shall be submitted to the company court,
together with the resolution of the Office.
(2) Article 52(7) of Act XLII of 2003 on Natural Gas Supply shall be replaced by
the following provision:
(7) In connection with any shares acquired in the absence of the resolution
of approval referred to in paragraphs (1) to (3) and upon failure to notify the
acquisition as prescribed in paragraph (3), the shareholder or member may not
be entered into the share register or the members register, and may not
exercise his rights vis--vis the company, except for dividend rights

Chapter XXIV
REPEALED LEGISLATION
VET Article 183
COMPLIANCE WITH THE LEGAL ACTS OF THE EUROPEAN UNION
VET Article 184 (1) This Act shall serve compliance with Directive 2009/72/EC
of the European Parliament and of the Council of 13 July 2009 concerning
common rules for the internal market in electricity and repealing Directive
2003/54/EC.
(2) Points 28, 30 and 40 of Article 3 of this Act shall serve compliance with
points (b) to (d) of Article 3 of Directive 2004/8/EC of the European Parliament
and of the Council of 11 February 2004 on the promotion of cogeneration
based on a useful heat demand in the internal energy market and amending
Directive 92/42/EEC.
(3) Points 4, 13a and 47 of Article 3 of this Act shall serve compliance with
Article 2(e) and (j) and Article 4(1) of Directive 2009/28/EC of the European
Parliament and of the Council of 23 April 2009 on the promotion of the use of
energy from renewable sources and amending and subsequently repealing
Directives 2001/77/EC and 2003/30/EC.
(4) This Act contains provisions for the implementation of
(a) Regulation (EC) No 714/2009 of the European Parliament and of the
Council of 13 July 2009 on conditions for access to the network for crossborder exchanges in electricity and repealing Regulation (EC) No 1228/2003,
(b) Article 16(p) contains provisions for the implementation of Commission
Regulation (EU) No 838/2010 of 23 September 2010 on laying down guidelines
relating to the inter-transmission system operator compensation mechanism
and a common regulatory approach to transmission charging,
(c) Regulation (EC) No 713/2009 of the European Parliament and of the
Council of 13 July 2009 establishing an Agency for the Cooperation of Energy
Regulators, and
(d) point 26 of Article 170(1) contains provisions for the implementation of
(da) Regulation (EU, Euratom) No 617/2010 of 24 June 2010 concerning the
notification to the Commission of investment projects in energy infrastructure
within the European Union and repealing Regulation (EC) No 736/96 and
(db) Commission Regulation (EU, Euratom) No 833/2010 of 21 September
2010 implementing Council Regulation (EU, Euratom) No 617/2010 concerning
the notification to the Commission of investment projects in energy
infrastructure within the European Union.
Compliance with the Legal Acts of the European Union
Vhr. Article 130 (1) This Decree shall serve compliance with
(a) Directive 2009/72/EC of the European Parliament and of the Council of 13 July
2009 concerning common rules for the internal market in electricity and repealing
Directive 2003/54/EC,

(b) Directive 2005/89/EC of the European Parliament and of the Council of 18


January 2006 concerning measures to safeguard security of electricity supply and
infrastructure investment,
(c) points 17 to 21 of Article 1, Article 14/A, Article 21/A and Article 23/A shall serve
compliance with Article 3(b), (e), (g), (h) and (l), Article 6(2) to (3) and Article 13(1) to
(3) of Directive 2006/32/EC of the European Parliament and of the Council of 5 April
2006 on energy end-use efficiency and energy services and repealing Council
Directive 93/76/EEC,
(d) subheading VI of Annex 24 shall serve compliance with Articles 1 to 3 of and
Annexes I and II to Directive 2008/92/EC of the European Parliament and of the
Council of 22 October 2008 concerning a Community procedure to improve the
transparency of gas and electricity prices charged to industrial end-users,
(e) subheading III of Annex 24 shall serve compliance with Article 4(2) to (4), Article
5(2), Articles 6 to 8, Article 9(4), Article 10(1) to (2), Article 11(1), Article 19(2), Article
22 and Article 27(2) of Directive 2009/28/EC of the European Parliament and of the
Council of 23 April 2009 on the promotion of the use of energy from renewable
sources and amending and subsequently repealing Directives 2001/77/EC and
2003/30/EC,
(f)
(g) subheading VII of Annex 24 shall serve compliance with Article 10(1) to (2) and
Article 11 of Commission Decision of 15 June 1979 laying down detailed rules for the
implementation of Council Decision 77/706/EEC (79/639/EEC),
(h) subheading VIII of Annex 24 shall serve compliance with Article 4(1), Article 7(1)
to (2), and Article 10(3) of Council Directive 2006/67/EC of 24 July 2006 imposing an
obligation on Member States to maintain minimum stocks of crude oil and/or
petroleum products,
(i) subheading IX of Annex 24 shall serve compliance with Articles 1 and 3 of
Commission Decision of 22 April 1999 implementing Council Decision 1999/280/EC
regarding a Community procedure for information and consultation on crude oil
supply costs and the consumer prices of petroleum products (1999/566/EC) and
(j) subheading XI of Annex 24 shall serve compliance with Article 8(1) and Articles
9 and 14 of Directive 94/22/EC of the European Parliament and of the Council of 30
May 1994 on the conditions for granting and using authorisations for the prospection,
exploration and production of hydrocarbons.
(2) This Decree contains provisions for the implementation of
(a) Regulation (EC) No 714/2009 of the European Parliament and of the Council of
13 July 2009 on conditions for access to the network for cross-border exchanges in
electricity and repealing Regulation (EC) No 1228/2003,
(b) subheadings IV to V of Annex 24 contain provisions for the implementation of
(ba) Regulation (EU, Euratom) No 617/2010 of 24 June 2010 concerning the
notification to the Commission of investment projects in energy infrastructure within
the European Union and repealing Regulation (EC) No 736/96 and
(bb) Commission Regulation (EU, Euratom) No 833/2010 of 21 September 2010
implementing Council Regulation (EU, Euratom) No 617/2010 concerning the
notification to the Commission of investment projects in energy infrastructure within
the European Union, and
(c) subheading X of Annex 24 contains provisions for the implementation of Council
Regulation (EC) No 2964/95 of 20 December 1995 introducing registration for crude
oil imports and deliveries in the Community.