Hungary at odds with EC's energy market deregulation plan

Energy Trade

Hungary does not agree with the European Commission's plan for energy market deregulation, as its timing is too early and it is incompatible with the interests of Hungarians, Innovation and Technology Minister László Palkovics told news agency MTI by phone after a meeting with European Union Commissioner for Energy Kadri Simson in Brussels on Monday.

Palkovics said the EC's plan to manage high energy prices is "unacceptable" for Hungary because the measures it envisions would place the burden on households in the mid-term.

If the EU's carbon quota system is applied to vehicle fuel prices, it could increase households' costs by HUF 200,000-300,000, he added.

"This is not the right way to go," he said.

Palkovics said Hungary can agree with the principle of energy efficiency and a higher share of renewables, but raising targets to a degree that they double is "inappropriate".

He said Simson confirmed that the green investments chapter of Hungary's Recovery and Resilience Facility (RRF) plan enjoys the full backing of the Commission.

He added that Hungary believes gas and nuclear energy must play a role in the energy mix used to achieve 2050 climate goals.

Palkovics said he signaled at a meeting with NATO Deputy Secretary-General Mircea Geoana that Hungary wants to participate to a greater degree in the implementation of the alliance's new innovation system.

Hungary would gladly offer a location for the operational center of the system which aims to channel research results in the civilian sector to the defense industry, he added.

He said Hungary's ZalaZONE vehicle test track in Zalaegerszeg could also be used in the system, noting that it is suitable for tracked vehicles and drones.

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