Management of the Hungarian Energy Office - Magyar Energia Hivatal

hungarian energy office
REGULATION AND OPERATION OF THE ELECTRICITY MARKET
REGULATORY ISSUES
Licensing and supervision
In 2009, HEO issued 302 resolutions to electricity
undertakings. From among them, 43 were simplifi ed license
for small power plants and 53 were resolutions on license
modifi cations. HEO issued 30 trading licenses, 39 resolutions
on the approval or modifi cation of codes, approved 6 events
in relation with corporate law and 121 other cases, decided
to launch inspection in 10 cases and made 2 resolutions on
imposing fi nes.
Licensing procedure for small power plants and the scheme
of feed-in obligation
The Electricity Act specifi ed cases when a simplifi ed licensing
procedure must be conducted for small power plants of
capacity of 0.5 MW or above. Licensing was continuous in
2009.
The amount of the electricity to be fed in under feed-in
obligation (quota), the duration of the obligatory feedingin,
and the expiration date of the operational licenses must
be determined by HEO taking into account the international
commitments of Hungary on the share of renewable electricity,
the competitiveness of power generated from renewable
sources, the impact of the given technology on the balanced
operation of the electricity system, the ability of consumers to
pay, the position of the system operator, and the extent of other
approved supports. The electricity co-generated with heat has
also fallen under the scope of this regulation since 1 January
2008.
In accordance with Section (5) of Article 171 of the Electricity
Act, selling rights regarding sales of the electricity cogenerated
with heat falling under feed-in obligation, and not
regulated by any authority resolution on the determination of
the volume of the electricity falling under feed-in obligation
and the period of obligatory feeding in, will cease to exist
on 31 December 2010. In cases specifi ed in the Act, HEO
may determine the quantity of the electricity to be fed in and
the period of feed-in obligation for the period ending by 31
December 2015 at latest. In 2009, HEO issued 100 relevant
resolutions to small power plants.
Licensing of wind power plants
In 2009 HEO did not issue any new license in relation with
wind power plants.
The KHEM Decree 33/2009 (30.06) on the Conditions of the
Tender on the Establishment of Wind Power Plant Capacity,
the Minimum Content Requirement of Tender and the Rules
of Tendering Procedure was published on 30 June 2009.
annual report 2009 | 12
On 28 August 2009, HEO called for tenders on the right to
establish wind power plant capacity in total of 410 MW. The
deadline for submitting tenders was 1 March 2010. HEO
held a consultation on tendering on 14 September 2010, and
modifi ed the Tender Dossier on 28 September taking into account
the remarks made on the consultation.
Inspection of power plants
In the course of the inspections performed at power plants in
2009, HEO concluded that the required fuel reserves specifi ed
in legal regulations were available in all power plants, and in
several places reserves even exceeded the required quantity.
Maintenance was carried out upon different principles but
according to the schedule on all locations thus ensuring
reliability and availability.
In compliance with the relevant Decision of the European
Commission, MVM Zrt. terminated its long term power
purchase agreements with 4 power plants of the 7 affected
power plants, and concluded new agreements for a shorter
term.
In the course of the inspections, power plants presented their
electricity sales contracts concluded with electricity traders
after terminating their long term PPAs. Where it was possible,
contracts included ancillary services, as well.
In general, power plants have several-year contracts for fuel
purchases.
Power plants observed the regulations on environmental
protection, so the developments and reconstructions carried
out earlier made the power plants suitable for complying with
the strict norms, and no power plant had to be closed.