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Management of the Hungarian Energy Office - Magyar Energia Hivatal

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annual report 2009<br />

OPERATION OF THE HEO, INSTITUTIONAL RELATIONS, PUBLICITY<br />

INSTITUTIONAL AND INTERNATIONAL RELATIONS,<br />

PUBLICITY<br />

Bilateral institutional relations<br />

In addition to HEO, o<strong>the</strong>r administrative bodies also perform<br />

consumer protection tasks; HEO maintains – in accordance<br />

with <strong>the</strong> practice <strong>of</strong> <strong>the</strong> previous years – regular relationship<br />

with <strong>the</strong>se bodies (<strong>Hungarian</strong> Competition Authority,<br />

Ombudsmen, Parliamentary Commissioner for Data<br />

Protection and Freedom <strong>of</strong> Information, <strong>Hungarian</strong> Authority<br />

for Consumer Protection), and performed its work in<br />

coordination with those. The cooperation with <strong>the</strong> <strong>Hungarian</strong><br />

Authority for Consumer Protection was even closer than in<br />

<strong>the</strong> previous year, as <strong>the</strong> division <strong>of</strong> competencies, which took<br />

place in <strong>the</strong> electricity sector on 1 January 2008, and in <strong>the</strong><br />

natural gas sector on 1 July 2009. From 1 July 2009, HEO<br />

provides continuous pr<strong>of</strong>essional support for <strong>the</strong> <strong>Hungarian</strong><br />

Authority for Consumer Protection in <strong>the</strong> management <strong>of</strong><br />

diffi cult customer complaints not only on electricity licensees,<br />

but also on natural gas licensees. The competency rules were<br />

made more unambiguous by <strong>the</strong> amendments <strong>of</strong> <strong>the</strong> Electricity<br />

Act and <strong>the</strong> Gas Act, <strong>the</strong>refore fewer discussions were needed.<br />

Special attention was drawn to <strong>the</strong> defi nition <strong>of</strong> <strong>the</strong> forms and<br />

content <strong>of</strong> <strong>the</strong> data supply, as <strong>the</strong> information on complaints<br />

serves as a basis for <strong>the</strong> regulatory and supervising activities<br />

<strong>of</strong> HEO. In order to be able to monitor <strong>the</strong> observance <strong>of</strong> <strong>the</strong><br />

prescribed requirements it is indispensable that <strong>the</strong> data supply<br />

<strong>of</strong> <strong>the</strong> <strong>Hungarian</strong> Authority for Consumer Protection fi ts to <strong>the</strong><br />

statistical system according to which HEO collects <strong>the</strong> data,<br />

and on <strong>the</strong> basis <strong>of</strong> which it evaluates <strong>the</strong> activities <strong>of</strong> <strong>the</strong><br />

licensees. HEO also has an active and continuous relationship<br />

with non-governmental organizations <strong>of</strong> customer protection.<br />

Within <strong>the</strong> framework <strong>of</strong> this relationship, non-governmental<br />

organizations give <strong>the</strong>ir opinion on <strong>the</strong> Business Conducts<br />

Rules and resolutions on <strong>the</strong> quality <strong>of</strong> supply, and participate<br />

in <strong>the</strong> work <strong>of</strong> <strong>the</strong> <strong>Energy</strong> Interest Representation Board on<br />

every occasion.<br />

International relations<br />

HEO is member <strong>of</strong> <strong>the</strong> Council <strong>of</strong> European <strong>Energy</strong> Regulators<br />

(CEER) and <strong>the</strong> European Regulators’ Group for<br />

Electricity and Gas (ERGEG), which is operating as <strong>the</strong><br />

<strong>of</strong>fi cial advisory body <strong>of</strong> <strong>the</strong> EU Commission. The employees<br />

<strong>of</strong> HEO actively took part in <strong>the</strong> work <strong>of</strong> several working<br />

groups and subcommittees <strong>of</strong> <strong>the</strong> CEER and ERGEG in 2009,<br />

<strong>the</strong>refore <strong>the</strong>y directly obtained information regarding <strong>the</strong><br />

questions and issues <strong>of</strong> European energy affairs (safety <strong>of</strong><br />

supply, sustainability, energy consumers), and <strong>the</strong>y had <strong>the</strong><br />

possibility to represent <strong>the</strong> <strong>Hungarian</strong> interests during <strong>the</strong><br />

elaboration <strong>of</strong> <strong>the</strong> measures affecting <strong>the</strong> sector.<br />

In addition to <strong>the</strong> above, from 2010, HEO delegates members<br />

to <strong>the</strong> Renewable <strong>Energy</strong> Sources Concerted Action (RES<br />

CA), which was established for <strong>the</strong> harmonic implementation<br />

<strong>of</strong> <strong>the</strong> Directive on Renewables.<br />

The President <strong>of</strong> <strong>the</strong> UN Working Party on Gas – which<br />

performs data collection for <strong>the</strong> UN for gas storage, gas<br />

transmission and security <strong>of</strong> supply studies – is one <strong>of</strong> <strong>the</strong><br />

employees <strong>of</strong> HEO.<br />

HEO takes part in <strong>the</strong> work <strong>of</strong> <strong>the</strong> pr<strong>of</strong>ession association <strong>of</strong><br />

<strong>the</strong> energy regulators <strong>of</strong> several countries <strong>of</strong> Central Eastern<br />

Europe, Asia, and <strong>the</strong> Middle East, <strong>the</strong> <strong>Energy</strong> Regulators<br />

Regional Association (ERRA). The president <strong>of</strong> ERRA is one<br />

<strong>of</strong> <strong>the</strong> Directors <strong>of</strong> HEO, <strong>the</strong> Secretariat <strong>of</strong> ERRA operates in<br />

<strong>the</strong> building <strong>of</strong> HEO.<br />

From <strong>the</strong> sister authorities <strong>of</strong> <strong>the</strong> neighbouring countries, HEO<br />

has good bilateral relationships with <strong>the</strong> Austrian E-control<br />

and <strong>the</strong> Romanian ANRE.<br />

The <strong>Energy</strong> Interest Representation Board (EÉT –<br />

Energetikai Érdekképviseleti Tanács)<br />

In 2009, <strong>the</strong> <strong>Energy</strong> Interest Representing Board held<br />

semi-annual meetings with <strong>the</strong> participation <strong>of</strong> customers<br />

and licensees. <strong>Magyar</strong> <strong>Energia</strong>fogyasztók Szövetsége<br />

(The Association <strong>of</strong> <strong>the</strong> <strong>Hungarian</strong> <strong>Energy</strong> Customers),<br />

Ipari <strong>Energia</strong>fogyasztók Fóruma (Forum <strong>of</strong> Industrial<br />

<strong>Energy</strong> Customers) Országos Fogyasztóvédelmi Egyesület<br />

(Association for Consumer Protection <strong>of</strong> Hungary) were <strong>the</strong><br />

permanent representatives <strong>of</strong> <strong>the</strong> customer’s side.<br />

At <strong>the</strong> fi rst semi-annual meeting, EÉT reviewed <strong>the</strong> experience<br />

<strong>of</strong> <strong>the</strong> gas crisis that occurred at <strong>the</strong> beginning <strong>of</strong> 2009, as well<br />

as <strong>the</strong> connections between <strong>the</strong> European wholesale prices and<br />

<strong>the</strong> <strong>Hungarian</strong> consumer prices.<br />

The Agenda <strong>of</strong> <strong>the</strong> second semi-annual meeting <strong>of</strong> EÉT<br />

included a report on <strong>the</strong> actual experience concerning <strong>the</strong><br />

introduction <strong>of</strong> <strong>the</strong> new gas market model, a report on <strong>the</strong><br />

experience ga<strong>the</strong>red during <strong>the</strong> investigation <strong>of</strong> <strong>the</strong> electricity<br />

outage <strong>of</strong> January 2009, as well as <strong>the</strong> pricing <strong>of</strong> <strong>the</strong> universal<br />

natural gas service expected after July 2009.<br />

CONDITIONS OF OPERATION<br />

Financial <strong>Management</strong> <strong>of</strong> <strong>the</strong> HEO<br />

HEO stands as a separate title in <strong>the</strong> budget <strong>of</strong> KHEM, it<br />

receives state support for payment <strong>of</strong> <strong>the</strong> so-called income<br />

supplements; <strong>the</strong> support was centrally determined and<br />

obligatory. The extent <strong>of</strong> revenues <strong>of</strong> HEO and <strong>the</strong> procedures<br />

<strong>of</strong> collection are regulated by KHEM Decree 30/2008 (31.10)<br />

on <strong>the</strong> Service Fees <strong>of</strong> <strong>the</strong> <strong>Hungarian</strong> <strong>Energy</strong> Offi ce and <strong>the</strong><br />

Rules <strong>of</strong> Payment <strong>of</strong> <strong>the</strong> Administrative Service Fee and <strong>the</strong><br />

Supervision Fee, and GKM Decree 91/2007 (20.11) amended<br />

by KHEM Decree 6/2009 (28.02). HEO is an independently<br />

operating, fi nancially autonomous central administrative<br />

body, that has full authority in managing his budgetary<br />

annual report 2009 | 47

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