Energy Policies of IEA Countries: Hungary 1999

The International Energy Agency's 1999 review of Hungary's energy policies and programmes. Hungary joined the International Energy Agency on 3 June 1997 as part of its transition toward a market economy and integration into the West that began after 1990. It also envisages accession to the European Union (EU) within the next three years. This will require further changes to the country’s energy sector that underwent considerable change during the transition years. Previously operated by the state-held body MVM, Hungary’s electricity supply industry was restructured and privatised, with generation, transmission and distribution now separate functions. But as the country’s wholesale company, MVM still dominates the industry. New legislation provides for regulated third party access and progressive market opening, starting with 10% by 2001. MOL is the sole domestic producer of oil and gas, but the oil retail market is now fully competitive. MOL and the gas distribution and supply companies have been privatised, and new legislation introducing competition into the gas market is to be completed by 2002. Hungary signed the Climate Convention in 1994 and is committed to reduce its carbon dioxide emissions. The country’s total primary energy supply collapsed after 1989 and is not expected to recover to previous levels before 2010, so Hungary is certain to fulfil its obligations. But scope exists for major energy efficiency improvements.