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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,
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(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
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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
non-renewable 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 high-efficiency co-generated electrical energy based
on useful heat demand;
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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;
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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;
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(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
non-nuclear 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;
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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;
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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;
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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
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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.
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(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.
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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 demand-side 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;
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(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).
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(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
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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
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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
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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.
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(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
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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
long-term 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
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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.
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(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
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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
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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
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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,
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(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.
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(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,
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(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,
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(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