“The foundation of the Hungarian Hydrocarbon Stockpiling Association allowed creating the right balance between the efficiency of market operators and the stability of government institutions.”
The legal predecessor of the Hungarian Hydrocarbon Stockpiling Association (HUSA), the Crude oil and Petroleum Products Stockpiling Association was established by Act No. XLIX of 1993 (“the Oil Stockpiling Act”) on the strategic stockpiling of imported crude oil and petroleum products, to ensure sufficient strategic oil stocks in Hungary in case of a supply disruption. This Act was overruled, the new Oil Stockpiling Act No. XXIII. of 2013 is in force. The obligation to keep strategic stocks of natural gas was introduced by Act No. XXVI of 2006 (“the Gas Stockpiling Act”) on the strategic storage of natural gas. Accordingly, the Association is responsible for forming and maintaining strategic stocks at a level determined in the Stockpiling Acts, and for ensuring the necessary conditions. The activities of HUSA not directly concerning stockpiling are very limited and all profits arising from these are used for financing the Association’s main mission. The core and non-core activities are performed by the Association’s work organization and by the entities which it established. The Minister responsible for energy policy exercises supervision over these operations.
The Association is, therefore, a special legal entity established by law. It performs its mission as an independent organization under state supervision, in accordance with the principle of industry self-regulation, governed by fundamental and detailed rules.
The Association is not a budgetary body; it operates entirely from own resources, which are the contribution fees paid by members, the proceeds of own operations and borrowings. HUSA does not dispose of public funds in any form; its budget is independent from the state budget and from its subsystems. It is not a market operator, considering that the governing laws require neutrality in competition and non-interference in the market. The foundation of the Association allowed creating the right balance between the efficiency of market operators and the stability of government institutions.
The expenditures of strategic stockpiling appear in the gas invoices of consumers since January 1st 2010 in accordance with Decree No 72/2009 (07/12/09) of the Ministry of Transport, Communications and Energy modifying Decree No 29/2009 (25/06/09) on the pricing of universal services on the natural gas market. The costs of gas supply security and stability appear in the unit fee of gas consumption (per 1 cubic metre). (The stockpiling fee has been incorporated in the price of gasoline and gas oil for more than a decade in accordance with the law.)
A characteristic and fundamental advantage of the strategic stockpiling system is that the costs of energy security appear in service fees in the form of small, not burdensome, well spread-out charges, providing security against disruptions which typically entail significantly higher expenses.
|Phone:||+36 (1) 430-3300|
|+36 (1) 430-3310|
|Fax:||+36 (1) 430-3311|
|Montevideo u. 16/B|