Thursday, October 25, 2007

Tariffs to Hell

The Hungarian government announced in its official gazette Magyar Közlöny on 21 October that it would introduce a HUF 4,426 /MWh (EUR 17.63/MWh) fee for power exports, starting in January 2008. The European Federation of Energy Traders (EFET), a virtual organisation designed to improve the conditions of energy trading in Europe, said it deplores this action for several reasons. It also called upon the government to “reconsider this unilateral measure and to face up to the realistic consequences of its planned actions, in close consultation with the European Commission and authorities in neighbouring countries." (

OK, sometimes (well a lot of times lately) my government doesn't do so well in the field of rationality. But what the Hungarian government has announced the HUF 4,426 /MWh fee is totally illegal. That is directly contravenes the EU 1228/ 2003. Let me quote from section 13,

(13) It would not be appropriate to apply distance-related
tariffs, or, provided appropriate locational signals are in
place, a specific tariff to be paid only by exporters or
importers in addition to the general charge for access to
the national network.

Now I'm waiting for the Hungarian Energy Office to step in, because according to section 20,

(20) National regulatory authorities should ensure
compliance with the rules contained in this Regulation
and the guidelines adopted on the basis of this

So I'm sure everything will be alright.

But I'll be setting up a trading company for 2008, and then I'll sue for damages and make a little money in a few years time for lost earnings. Then I'll take the money buy a large slice of MOL and when the EU overturns the Lex MOL law I'll be able to sit on the board. I'll have more on this story later for sure.