Title: Hungary Opposes Key Electricity Market Reform Proposed by European Commission
Date: June 19, 2023
Hungary’s Minister of Foreign Affairs and Foreign Economic Relations, Peter Szijjártó, announced that Hungary will not support the reform of the European electricity market proposed by the European Commission (EC). The decision was made after a meeting of energy ministers from EU countries held in Luxembourg on Monday.
According to Szijjártó, the reform proposed by the European Commission is seen as a price dictate and a rejection of cheap tariffs for residential and communal services. He stated, “We will vote against it,” emphasizing that the proposals would deprive Hungary’s leadership of the right to maintain low prices for housing and utilities.
Hungary, known for having the lowest tariffs for residential and communal services in the European Union, believes that the right to set low electricity prices should belong to the Hungarian government. Szijjártó highlighted the importance of preserving affordable prices for Hungarian citizens.
The European Commission’s reform proposal, introduced in March, aims to implement long-term contracts with fixed prices in the EU electricity market. If approved by the Council of the EU and the European Parliament, it would require amendments to the existing documents governing contract procedures and price setting in the European energy market.
The stance taken by Hungary reflects its commitment to safeguarding the interests of its citizens and maintaining control over domestic energy pricing. The country’s opposition to the proposed reform sets the stage for further discussions and negotiations within the European Union regarding the future of the electricity market.
Overall, Hungary’s decision not to support the European Commission’s reform of the electricity market highlights the importance of national sovereignty in determining energy policies and pricing strategies. The outcome of this debate will have significant implications for the energy sector in Hungary and the wider European Union.
electricity market design
Hungary Rejects European Commission’s Proposed Electricity Market Reform
Hungary has announced its opposition to the reform of the European electricity market proposed by the European Commission (EC). At a meeting of energy ministers from EU countries, Peter Szijjártó, Hungary’s Minister of Foreign Affairs and Foreign Economic Relations, stated that the proposed reform is viewed as a price dictate and a threat to affordable tariffs for residential and communal services. Hungary, known for its low tariffs in the European Union, believes that the right to set electricity prices should remain with its government.
The European Commission’s reform proposal, introduced in March, aims to implement long-term contracts with fixed prices in the EU electricity market. However, Hungary disagrees with this approach and emphasizes the importance of maintaining affordable prices for its citizens. Szijjártó stated that Hungary will vote against the reform as it would deprive the country’s leaders of the ability to sustain low prices for housing and utilities.
This stance reflects Hungary’s dedication to safeguarding the interests of its citizens and retaining control over domestic energy pricing. Hungary’s opposition to the proposed reform sets the stage for further discussions and negotiations within the European Union regarding the future of the electricity market.
The outcome of this debate will have significant implications for the energy sector in Hungary and the wider European Union. It highlights the importance of national sovereignty in determining energy policies and pricing strategies. The disagreements and negotiations that follow will shape the future of the European electricity market.
It’s disappointing to see Hungary opposing the European Commission’s electricity market reform. The rejection of cheap tariffs and the criticism of price dictate by Peter Szijjártó only serves to hinder progress and hamper the development of affordable electricity options. It’s important to prioritize the well-being of citizens and ensure access to affordable energy for all.