ENERGY POLICY - Proper Functioning of Markets

Today it stands unchallenged, that a soundly regulated, competitive market is the framework, that provides the most efficient functioning of the energy system of a given country. Our everyday experience in Hungary also underlines this: we enjoy the benefits of competition in the field of fuel-distribution. Creation of similar conditions for electricity and natural gas supply is therefore also necessary in Hungary.
Establishing market competition is the most urgent in the electricity sector. The first steps have unquestionably been made, however, significant duties are to be carried out in the dissolution of monopolistic tendencies, eliminating systematic and competition distorting state intervention. These are the requisites for the evolution of a modern, European-style business culture and consequently, the elimination of corruption mechanisms that pose a huge threat nowadays. Thus pursuing a debate about the long-term role of the state (both as owner and as a regulator) and about the conditions of an adequate market structure is inevitable.
There is a lot of work to be done in the gas sector as well, a market on which there is only minimal competition and lack of proper regulation causes harm to our national interests as well as to the consumers. Besides, Hungary must fulfill its commitments towards the European Union as well.
 
Although some advancement has been made in this field, a detailed investigation in the question makes it clear that Hungary has made changes mostly due to the pressure from the European Union. With the projects of the Proper Functioning of Markets program area the Energy Policy Division pursue two interconnected aims. Our task is to contribute to the change of business culture, which realizes that it is possible to generate profit in Europe in a fair way, tunefully with the common good. Our other main objective is to let governmental decision-makers and the general public aware that it is in our self-interest to solve these tasks for ourselves, since at the and of the day we are paying the bill.

NEWS, INFORMATION
RENEWABLES
ENERGY EFFICIENCY
CONVENTIONAL ENERGY SOURCES
CLIMATE CHANGE
ENERGY POLICY
program areas
Sustainability in Strategic Thinking
Energy Security of Europe
Proper Functioning of Markets
links
power plant map