Management of the Hungarian Energy Office - Magyar Energia Hivatal
Management of the Hungarian Energy Office - Magyar Energia Hivatal
Management of the Hungarian Energy Office - Magyar Energia Hivatal
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Based on environmental considerations (facilitating<br />
sustainable development on <strong>the</strong> long term), a separate tariff<br />
was elaborated in 2009 for <strong>the</strong> electricity supply <strong>of</strong> heat pumps<br />
(devices directly serving <strong>the</strong> operation <strong>of</strong> equipment using<br />
heat from solar energy and o<strong>the</strong>r renewable energy sources<br />
for supplying heat to buildings). The electricity at discounted<br />
price both with regard to product price and <strong>the</strong> price for system<br />
use may be bought (under specialised terms) by <strong>the</strong> beginning<br />
<strong>of</strong> <strong>the</strong> heating season <strong>of</strong> 2010-11.<br />
System use<br />
The fourth four-year (from 2009 to 2012) cycle <strong>of</strong> price<br />
regulation for electricity system use started on 1 January 2009.<br />
The specifi c administrative prices for natural monopol<br />
activities (transmission system operation, ancillary services,<br />
distribution) were determined by <strong>the</strong> Decree <strong>of</strong> <strong>the</strong> Minister <strong>of</strong><br />
Economy and Transport (GKM) 119/2007 (29.12) on charges<br />
for electricity system use. By virtue <strong>of</strong> domestic regulation<br />
taking into account also <strong>the</strong> various international practices,<br />
only those who receive electricity from <strong>the</strong> network have to<br />
pay a charge for system use. Those who feed electricity in <strong>the</strong><br />
network (power plants) are excluded from this obligation.<br />
HEO prepared in<br />
2008 and published<br />
on 31 October 2008 a<br />
methodology guildeline<br />
on price regulatory<br />
scheme <strong>of</strong> <strong>the</strong> new price<br />
regulatory period – in<br />
accordance with Section<br />
(5) <strong>of</strong> Article 142 <strong>of</strong> <strong>the</strong><br />
Electricity Act. This was<br />
modifi ed by HEO ex<br />
<strong>of</strong>fi cio on 22 October<br />
2009 – with regard to<br />
<strong>the</strong> fallback (exceeding<br />
5%) in <strong>the</strong> electricity<br />
turnover in 2009 implied by <strong>the</strong> economic crisis and to a<br />
few unavoidable correction revealed in <strong>the</strong> meantime by<br />
<strong>the</strong> practice. HEO prepared charges for system use <strong>of</strong> 2010<br />
accordingly, and proposed to <strong>the</strong> Minister <strong>the</strong> promulgation<br />
<strong>the</strong>re<strong>of</strong>. Charges for system use effective from 1 January 2010<br />
were published in <strong>the</strong> KHEM Decree 69/2009. (4.12) on <strong>the</strong><br />
amendment <strong>of</strong> <strong>the</strong> GKM Decree 119/2007 (29.12) on <strong>the</strong><br />
charges for electricity system use.<br />
The sum <strong>of</strong> charges for transmission system operator and<br />
ancillary services grew by 53.5% on 1 January 2010 (compared<br />
to 1 HUF/kWh in 2009), but still was lower than <strong>the</strong> value <strong>of</strong><br />
2008. The growth above was resulted from 3 key factors.<br />
• (Posterior) Price regulatory adjustments carried over from<br />
<strong>the</strong> previous cycle ending by <strong>the</strong> year 2008;<br />
• Signifi cant increase in <strong>the</strong> price <strong>of</strong> reserve capacities<br />
(primarily secondary ones) <strong>of</strong> Dunamenti and AES Tisza<br />
power plants entering free market because <strong>of</strong> <strong>the</strong><br />
termination <strong>of</strong> <strong>the</strong> PPA portfolio <strong>of</strong> MVM Trade Zrt;<br />
annual report 2009<br />
• Amendment in price regulation executed by HEO – in<br />
association with <strong>the</strong> decline in electricity turnover.<br />
Distribution charges dropped by average 0.4% on 1 January<br />
2010 compared to 2009 (within this, values <strong>of</strong> changes varied<br />
depending on voltage levels between -33% and +2%). Figures<br />
above are explained by <strong>the</strong> infl ation-indexed increase <strong>of</strong><br />
charges covering fi x costs and <strong>the</strong> declined purchase cost <strong>of</strong><br />
electricity loss <strong>of</strong> distribution network.<br />
An annual distribution charge <strong>of</strong> 1800 HUF (excluding VAT)<br />
(in <strong>the</strong> case <strong>of</strong> a controlled tariff category only 600 HUF)<br />
has been imposed even on <strong>the</strong> smallest consumption places<br />
including also residential customers since 1 January 2009. The<br />
costs that have been covered by <strong>the</strong> base charge since 2009<br />
were covered previously by <strong>the</strong> consumption proportional<br />
distribution turnover charge, so <strong>the</strong> increase in this charge was<br />
lower than it would have been without it. In o<strong>the</strong>r words, <strong>the</strong><br />
introduction <strong>of</strong> <strong>the</strong> base charge did not mean an effective rise<br />
in <strong>the</strong> costs, but induced a restructuring among <strong>the</strong> various<br />
groups <strong>of</strong> customers.<br />
System operation charges between 2008 and 2010 are shown<br />
in Tables 6. a) – c).<br />
6. a) Charges for transmission system operation and ancillary services (HUF/kWh)<br />
and <strong>the</strong> changes <strong>the</strong>re<strong>of</strong><br />
In <strong>the</strong> case <strong>of</strong> user (customer)<br />
connecting to distribution<br />
network<br />
Charge for transmission system<br />
operation<br />
Charge for ancillary<br />
services<br />
Total<br />
Table 6 Aggregated electricity system use charges (excluding VAT 1 ) from 2008<br />
From<br />
January<br />
2008<br />
1.000<br />
0.672<br />
1.672<br />
Tariffs<br />
From<br />
January<br />
2009<br />
0.577<br />
0.423<br />
1.000<br />
From<br />
January<br />
2010<br />
0.823<br />
0.712<br />
1.535<br />
Electricity under feed-in obligation<br />
Changes in tariffs<br />
January<br />
2009<br />
-42.3%<br />
-37.1%<br />
-40.2%<br />
January<br />
2010<br />
42.6%<br />
68.3%<br />
53.5%<br />
The prices for <strong>the</strong> electricity falling under feed-in obligation<br />
changed on 1 January 2009 and <strong>the</strong> prices for <strong>the</strong> co-generated<br />
electricity changed on 1 October induced by changes in gas<br />
prices.<br />
The increase in <strong>the</strong> prices in January was varying between<br />
2.25 and 6.6%. The signifi cant standard variation resulted<br />
from <strong>the</strong> application <strong>of</strong> different price regulation formulas <strong>of</strong><br />
<strong>the</strong> various energy sources.<br />
In October, <strong>the</strong> price <strong>of</strong> energy generated by gas fi red<br />
cogeneration – simultaneously with <strong>the</strong> decrease in natural<br />
gas prices on 1 October and according to <strong>the</strong> provisions <strong>of</strong> <strong>the</strong><br />
effective Government decree [389/2007 (12.23)] – decreased<br />
by 9.88%.<br />
annual report 2009 | 23