The European Commission („EC”) has launched an infringement proceeding against Hungary in July 2018. According to the EC, the Hungarian law excludes certain cost types from the electricity and internal gas network charges, which are in infringement of the prescribed cost recovery plan set out in the Directive of Electricity and Internal Gas. In addition, the EC also stated that Hungary had accepted certain amendments in its electricity legislature that restricts the right of market operators to ask for a complete judicial review on the decision of network charges of the national regulatory body.
The EC had sent its letter of formal notice in 2015, followed by its two reasoned opinion in December 2016 and April 2017 to Hungary concerning this topic. Due to the fact that the Hungarian legislative measures taken thereafter still do not comply with to the EU legislation, the EC decided to transmit these questions to the European Court of Justice.
By Eszter Kamocsay-Berta, Managing Partner, KCG Partners Law Firm