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Several Energy Companies Can be Subject to State Supervision

Several Energy Companies Can be Subject to State Supervision

Hungary
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Due to the armed conflict and humanitarian disaster in Ukraine and in order to avert the consequences of such conflict in Hungary, the Government has adopted a decree that entered into force on 29 June 2022, on the basis of which, in order to safeguard the public interest of continuity and security of supply, the Government may place under the supervision of the Hungarian State the operators with significant or dominant market power in the energy industry, in particular in electricity, natural gas, petroleum, district heating and mining industry, including e.g. FGSZ Foldgazszallito Zrt. and the Hungarian Hydrocarbon Stockholders Association.

The Government may order that the person designated to exercise the state supervision may take all measures necessary to maintain the viability of the supervised entity, to ensure the effective exercise of state supervision and shall have the exclusive right to decide on matters falling within the competence of the supreme decision-making body of the supervised entity.

Up to now, the Government has not exercised its right under the Decree and there is no information when it will place those entities under state supervision.

By Eszter Ila-Horvath, Attorney at Law, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com