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Management of the Hungarian Energy Office - Magyar Energia Hivatal

Management of the Hungarian Energy Office - Magyar Energia Hivatal

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hungarian energy <strong>of</strong>fice<br />

In 2009, following a fi ne <strong>of</strong> 50 million HUF imposed by<br />

HEO in 2008, HEO imposed ano<strong>the</strong>r fi ne <strong>of</strong> 60 million HUF<br />

on E.ON Észak-Dunántúli Áramhálózati Zrt., because <strong>the</strong><br />

average duration <strong>of</strong> interruptions was more than 40% worse<br />

than <strong>the</strong> national average despite <strong>the</strong> fact that HEO ignored<br />

in its evaluation <strong>the</strong> effects <strong>of</strong> outages due to <strong>the</strong> extreme<br />

wea<strong>the</strong>r conditions.<br />

One <strong>of</strong> <strong>the</strong> most important elements <strong>of</strong> <strong>the</strong> monitoring system<br />

established by HEO in order to detect voltage quality is <strong>the</strong><br />

ratio <strong>of</strong> customers supplied durably (for over 12 months) by<br />

irregular voltage. The fi gures <strong>of</strong> this index with regard to 2008<br />

show that <strong>the</strong> values varied according to licensees from year<br />

to year in both size and direction. However, <strong>the</strong>re are some<br />

companies that have not had any users supplied by irregular<br />

voltage even for several years. It is justifi ed to continue<br />

inspections in order to be able to shape a well-founded<br />

pr<strong>of</strong>essional opinion.<br />

Reliability <strong>of</strong> electricity supply<br />

In 2008, <strong>the</strong> Electricity Act provided a possibility to HEO again<br />

to determine minimum quality requirements and expected service<br />

levels. These requirements and standards were calculated<br />

on a three-year basis with a view to mitigate <strong>the</strong> effects <strong>of</strong><br />

extreme wea<strong>the</strong>r conditions. In its resolution, HEO requires<br />

annual improvement also with regard to three expected service<br />

level indices expressed in an annual percentage value<br />

relative to <strong>the</strong> performance <strong>of</strong> <strong>the</strong> previous year in addition to<br />

<strong>the</strong> minimum quality requirements on <strong>the</strong> indices serving as<br />

a base to fi nancial incentives on service levels to be provided<br />

by electricity distribution<br />

licensees.<br />

In June 2009, HEO<br />

assessed <strong>the</strong> level <strong>of</strong> <strong>the</strong><br />

reliability <strong>of</strong> electricity<br />

supply in 2008. In its<br />

assessment available<br />

also on HEO’s homepage,<br />

HEO claimed<br />

with regard to national<br />

fi gures that one <strong>of</strong> <strong>the</strong><br />

internationally accepted<br />

indices serving for <strong>the</strong><br />

measuring <strong>of</strong> continuity<br />

<strong>of</strong> supply – System<br />

Average Interruption<br />

Frequency Index –<br />

defi nitely improved in<br />

2008 to 1.61 interruption/user (after 1.90 in 2007). The o<strong>the</strong>r<br />

international index serving for measuring <strong>of</strong> <strong>the</strong> continuity <strong>of</strong><br />

supply is <strong>the</strong> System Average Interruption Duration Index.<br />

Following an improving tendency from 2000 to 2005, this<br />

index stagnated in 2006 and 2007, which was followed by<br />

improvement again in 2008. The duration <strong>of</strong> interruptions per<br />

customer was 111 minutes in 2008 (following 139 in 2007),<br />

which matches <strong>the</strong> values <strong>of</strong> <strong>the</strong> international middle range.<br />

The duration <strong>of</strong> interruption projected to <strong>the</strong> number <strong>of</strong> users<br />

annual report 2009 | 28<br />

improved in <strong>the</strong> case <strong>of</strong> each licensee in 2008. The outage index<br />

(non-supplied energy per supplied energy), which is one<br />

<strong>of</strong> <strong>the</strong> indices in <strong>the</strong> electricity sector that has been kept track<br />

<strong>of</strong> for <strong>the</strong> longest time, was characterised by an improving<br />

tendency for several years until 2005. The index worsened by<br />

22% in total in 2006 and 2007, which was followed by a 20%<br />

improvement in 2008.<br />

Following a thorough analysis taking into account all<br />

conditions <strong>of</strong> each case, HEO gave an exemption from taking<br />

into account a part <strong>of</strong> breakdown events due to <strong>the</strong> wea<strong>the</strong>r<br />

conditions beyond design conditions. To sum it up, it can be<br />

stated that distribution licensees make large efforts to observe<br />

<strong>the</strong> annually increasing levels determined in <strong>the</strong> resolution <strong>of</strong><br />

HEO. The detailed documentation <strong>of</strong> <strong>the</strong> annual evaluations<br />

can be found on <strong>the</strong> homepage <strong>of</strong> HEO.<br />

In 2009, HEO investigated data collections made by<br />

distribution licensees in relation with reliability <strong>of</strong> electricity<br />

supply, <strong>the</strong> documentation <strong>of</strong> planned and non-planned failures<br />

and data supply to HEO. In <strong>the</strong> course <strong>of</strong> <strong>the</strong> investigation,<br />

HEO found that licensees’ data supply is in compliance with<br />

<strong>the</strong> provisions specifi ed in <strong>the</strong> relevant decrees.<br />

Consumer complaints<br />

2009 did not see any signifi cant changes in HEO’s complaint<br />

management. The Electricity Act divided <strong>the</strong> competence<br />

<strong>of</strong> complaint management amongst HEO and Nemzeti Fogyasztóvédelmi<br />

Hatóság (<strong>Hungarian</strong> Authority for Consumer<br />

Protection) on 1 January 2008. The Act failed to unambiguously<br />

regulate <strong>the</strong> mangement<br />

<strong>of</strong> several complaint<br />

types, which required <strong>the</strong><br />

two authorities to have<br />

frequent discussions<br />

on competences in<br />

2008. The amendment<br />

<strong>of</strong> <strong>the</strong> Electricity Act<br />

during 2009 (on 1 July<br />

2009) ceased <strong>the</strong>se<br />

uncertainties, and both<br />

HEO and Nemzeti Fogyasztóvédelmi<br />

Hatóság<br />

could unambiguously<br />

determine <strong>the</strong>ir cirlce<br />

<strong>of</strong> competence and<br />

<strong>the</strong> borders <strong>the</strong>re<strong>of</strong>,<br />

respectively. With a view<br />

to ensure <strong>the</strong> relevant<br />

knowledge required for <strong>the</strong> management <strong>of</strong> complaints <strong>of</strong><br />

<strong>the</strong> electricity sector, HEO provided a regular and frequent<br />

support in <strong>the</strong> whole year to Nemzeti Fogyasztóvédelmi Hatóság.<br />

As a result <strong>of</strong> <strong>the</strong> division <strong>of</strong> authority specifi ed by <strong>the</strong><br />

Electricity Act, <strong>the</strong> number <strong>of</strong> consumer notices received by<br />

HEO in 2009 essentially remained unchanged following a<br />

decrease <strong>of</strong> 41.35% in 2008. The number <strong>of</strong> complaints grew

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