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Management of the Hungarian Energy Office - Magyar Energia Hivatal

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y 7 January. In <strong>the</strong> evening <strong>of</strong> 6 January, <strong>the</strong> system operation<br />

licensee ordered – in accordance with <strong>the</strong> enforcement decree<br />

<strong>of</strong> <strong>the</strong> Gas Act – <strong>the</strong> restriction <strong>of</strong> <strong>the</strong> fi rst category (large<br />

customers above 2500 m 3 /hour consumption), which was<br />

followed by <strong>the</strong> restriction <strong>of</strong> category II (customers between<br />

500-2500 m 3 /hour) on 7 January. On 7 January – on <strong>the</strong> basis<br />

<strong>of</strong> GKM Decree 75/2007 (17.08) – <strong>the</strong> Natural Gas Crisis<br />

Committee convened a meeting, and coordinated <strong>the</strong> necessary<br />

measures on <strong>the</strong> following days. E.ON Földgáz Storage Zrt.<br />

increased <strong>the</strong> withdrawal from <strong>the</strong> gas storage facilities from<br />

6 January to <strong>the</strong> maximum. The restriction <strong>of</strong> category II was<br />

removed after one day, <strong>the</strong> large customers <strong>of</strong> category I.<br />

(primarily <strong>the</strong> gas-combustion power plants) remained under<br />

restriction until 15 January. MOL Nyrt. also increased <strong>the</strong><br />

production <strong>of</strong> <strong>the</strong> domestic natural gas<br />

fi elds to <strong>the</strong> maximum available level.<br />

KHEM Decree 1/2009 (07.01) on <strong>the</strong><br />

authorization <strong>of</strong> <strong>the</strong> use <strong>of</strong> <strong>the</strong> security<br />

natural gas reserve was issued, but in<br />

<strong>the</strong> end <strong>the</strong>re was no need to use it.<br />

After 2 days <strong>of</strong> reduced operation (2<br />

million m 3 /day) on 8 January, thank to<br />

<strong>the</strong> measures taken by E.ON International<br />

GmbH, <strong>the</strong> level <strong>of</strong> <strong>the</strong> import<br />

from <strong>the</strong> Western direction increased<br />

(8-9 million m 3 /day) out <strong>of</strong> which<br />

<strong>the</strong> <strong>Hungarian</strong> Government was able<br />

Transmission charges<br />

Entrance charge<br />

3 {HUF/(m /h)/year}<br />

Exit charge<br />

3 {HUF/(m /h)/year}<br />

3<br />

Volume charge (HUF/m )<br />

3<br />

Average price (HUF/m )<br />

to help out Serbia, who was undergoing an absolute crisis.<br />

Finally, on 20 January <strong>the</strong> Eastern import gas transmission<br />

started, and on 21 January it already operated at full capacity.<br />

As a summary, <strong>the</strong> outage <strong>of</strong> gas import affected Hungary <strong>the</strong><br />

least compared to <strong>the</strong> surrounding countries, thanks partially<br />

to <strong>the</strong> extent <strong>of</strong> <strong>the</strong> established gas storage capacity, to <strong>the</strong><br />

adequate winter preparations, and to <strong>the</strong> fair cooperation <strong>of</strong><br />

<strong>the</strong> affected organizations.<br />

On <strong>the</strong> basis <strong>of</strong> <strong>the</strong> experience <strong>of</strong> <strong>the</strong> January gas supply crisis<br />

and Directive 2004/67/EC, Government Decree 265/2009<br />

(1.12) was issued on <strong>the</strong> restrictions <strong>of</strong> natural gas <strong>of</strong>ftake,<br />

<strong>the</strong> use <strong>of</strong> <strong>the</strong> natural gas safety reserve, and <strong>the</strong> measures<br />

necessary in <strong>the</strong> case <strong>of</strong> a natural gas crisis.<br />

Table 12 Change <strong>of</strong> <strong>the</strong> transmission charges in 2009<br />

annual report 2009<br />

customers. On 1 July 2009, KHEM Decree 28/2009 (25.06) on<br />

<strong>the</strong> setting <strong>of</strong> prices in connection with <strong>the</strong> natural gas universal<br />

service came into force.<br />

Characteristics <strong>of</strong> <strong>the</strong> price system and price regulation<br />

from 1 January 2009 to 30 June 2009<br />

GKM Decree 105/2005 (19.12) on <strong>the</strong> frameworks <strong>of</strong> natural<br />

gas price regulation orders <strong>the</strong> application <strong>of</strong> a regular price<br />

adjustment for 1 January and 1 April on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> factors<br />

affecting <strong>the</strong> purchase costs <strong>of</strong> natural gas.<br />

The resale charges (resale capacity charge and resale gas<br />

charge) serving as <strong>the</strong> basis for <strong>the</strong> settlement between <strong>the</strong><br />

01.07.2008 01.07.2009 Change<br />

8 373 9 932 19 %<br />

2 455 2 231 -9 %<br />

1.165 0.833 -29 %<br />

3.702 4.01 8 %<br />

wholesaler and <strong>the</strong> public utility service suppliers have not<br />

changed in <strong>the</strong> fi rst half <strong>of</strong> 2009. With <strong>the</strong> model switch, <strong>the</strong><br />

public utility wholesaler status has ceased to exist since 1 July<br />

2009.<br />

Characteristics <strong>of</strong> <strong>the</strong> price system and price regulation<br />

from 1 July 2009 to 31 December 2009<br />

After <strong>the</strong> model switch <strong>of</strong> 1 July 2009, <strong>the</strong> price preparation<br />

activity <strong>of</strong> HEO is focused on <strong>the</strong> system use charges. In <strong>the</strong><br />

new model, universal service suppliers replacing public utility<br />

service providers supply customers under 100 m 3 /h as well<br />

as district heat generation licensees who have not entered<br />

<strong>the</strong> competitive market. HEO in resolution decides about <strong>the</strong><br />

charges to be applied by universal service suppliers – on <strong>the</strong><br />

basis <strong>of</strong> pricing requests <strong>of</strong> licensees (once each quarter).<br />

PRICE PREPARATION, PRICE REGULATION<br />

GKM Decree 70/2003 (28.10) on <strong>the</strong> setting <strong>of</strong> natural gas<br />

With regard to price regulation, 2009 brought a signifi cant<br />

change. GKM Decree 105/2005 (19.12) on <strong>the</strong> frameworks<br />

<strong>of</strong> price regulation <strong>of</strong> natural gas served as a basis for system<br />

system use charges was amended in January and April 2009,<br />

and subsequently it was repealed by KHEM Decree 31/2009<br />

(25.6) on <strong>the</strong> setting <strong>of</strong> natural gas system use charges, which<br />

use charges and <strong>the</strong> public utility end<br />

user charges until 30 June 2009. After<br />

<strong>the</strong> model switch in natural gas mar-<br />

Table 13 Change <strong>of</strong> <strong>the</strong> storage charges in 2009<br />

Storage charge 01. 07. 2008 01. 07. 2009 Change<br />

ket in July 2009, <strong>the</strong> above decree only<br />

provides for <strong>the</strong> price regulation <strong>of</strong> <strong>the</strong><br />

system use charges.<br />

Injection charge (HUF/m ) 1.369<br />

0.439<br />

0.78<br />

0.119<br />

-43 %<br />

-73 %<br />

On 1 July 2009, public utility supply en-<br />

4.93 5.32 8 %<br />

ded, and <strong>the</strong> group <strong>of</strong> customers supplied<br />

in <strong>the</strong> framework <strong>of</strong> universal service<br />

219.81 230.26 5 %<br />

was reduced compared to pubic utility<br />

2.815 2.799 -1 %<br />

3<br />

Withdrawal charge (HUF/m )<br />

3<br />

Storage working gas charge<br />

(coefficient)<br />

Storage peak charge<br />

(coefficient)<br />

3<br />

Average price (HUF/m )<br />

annual report 2009 | 37

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