On 3 July 2020, the Hungarian parliament adopted an amendment to Act LXXXVI on electricity.
Further to the state of emergency announced by the Government and surrounding COVID-19, the amendment authorises the President of the Hungarian Energy and Public Utility Regulatory Authority (HEPURA) to adopt a decree on the extension of the deadline for commencement of commercial operations and the conditions of the extension for electricity production under the "mandatory off-take entitlements" (so-called KÁT), and the entitlement for aid granted as a premium outside the tender procedure.
Lawmakers also added the following section to the Electricity Act; regarding KÁT and to entitlements for aid granted as a premium outside the tender procedure, the HEPURA has the right to extend by decree the deadline for commencement of commercial operations.
The purpose of the amendment to the Electricity Act is to ease the pressure caused by the COVID-19 pandemic on PV projects currently under development.
The amendment to the Electricity Act entered into force on 15 July 2020. No decree by the HEPURA or by the President of the HEPURA has been published yet on the exact method, deadline and other conditions of the extension (i.e. whether extensions will be requested for individual projects, etc.).
CMS will be monitoring this situation and will alert Law-Now readers when these details become known.
For further information on this amendment and renewable energy in Hungary, contact your regular CMS source or local CMS experts Péter Simon, Zsófia Hermann and Péter Deák.