Hungary did not violate EU law by prohibiting the inclusion in system usage charges of the special tax levied on energy networks and the costs related to financial transaction charges, the judgment of the Court of Justice of the European Union adopted in connection with the EU infringement procedure instituted against Hungary lays down, the Ministry for Innovation and Technology announced on Monday.

With this, the court confirmed that Hungary complies with EU regulatory requirements regarding energy markets and may decide on this issue within Member State competence, meaning that the reduction of household utility bills does not contravene EU law. Hungary has won the dispute with the European Commission, and has defended the results of the reduction of household utility bills, the Ministry’s communication stressed.

According to the judgment adopted by the Court of Justice of the European Union on 16 July 2020 on the subject-matter of the infringement procedure instituted by the European Commission against Hungary, the relevant EU regulation does not require any special taxes levied on energy networks and costs related to financial transaction charges to be necessarily taken into consideration when determining the fees charged for providing access to networks.

The judgment additionally lays down that Hungary must ensure the availability of effective legal remedies in connection with the decisions of the Hungarian Energy and Utilities Regulatory Authority determining network usage charges. With regard to the judgment of the European Court, Hungary is ready to carry out the necessary legislative amendments in the interest of providing an appropriate appeal mechanism.

The government continues to remain committed to defending the results of the reduction of household utility bills which is also an important element of its Climate and Nature Preservation Action Plan announced in January as this, too, helps members of the public to have access to cheap and innovative energy, they wrote.

(Ministry for Innovation and Technology / MTI)