Energy Regulator Restructured And Further Cuts In Utilities Prices Expected

In 2013, Hungary has introduced a 10% household utilities price cut in the field of electricity, gas and district heating. To ensure thorough enforcement of the price cuts, the country's energy regulator was restructured and several barriers were set to prevent energy companies from passing on these burdens to consumers.

To ensure that utilities companies comply with the above-mentioned price cuts, the Hungarian Parliament approved a bill that restructures the country's energy regulator, Hungarian Energy Office (MEH). The bill, which was passed during an extraordinary session held on 14 March 2013, will become effective on 4 April 2013. Pursuant to the new law, the legal successor of MEH, an independent regulatory body called the Hungarian Energy and Public Works Regulatory Authority, will oversee electricity, gas, district heating, water and waste collection services. The new authority will also have the power to issue decrees.