Regulatory Background

The liberalisation of the Hungarian gas market started on 1^st January 2004.

The Act on Gas Supply (Act Nr. XLII of 2003), reflecting the recommendations of Directive Nr. 98/30/EC of the European Union, created the legal background to market opening in order to ensure the full legal harmonisation of Hungary.

Directive Nr. 98/30/EC of the European Union aimed:

• to create transparent and non-discriminatory open market conditions in the whole energy market,
• to ensure customers the right to choose their gas supplier and
• to ensure a continuous and reliable gas supply

The Directive recommended a 10-year long implementation period to the member states.

In March 2001 the European Committee decided to speed up liberalisation and as a result, issued Directive Nr. 2003/55/EC effecting the following changes:

• starting from 1^st July 2004 each non-household consumer becomes an eligible customer;
• starting from 1^st July 2007 each consumer can choose its supplier.

The second step of the Hungarian natural gas market liberalisation is expected on 1^st July 2007.