The International Energy Agency (IEA) has told the Hungarian government that it must now focus on implementing a framework that will allow full competition to develop in the area, as well as ensuring that consumers benefit from the increased competition. The IEA said that, as yet, there is no clarity about the system under which the Hungarian market should operate after its full opening.
Claude Mandil, executive director of the IEA, commented that, in addition, Hungary needs to work on its energy efficiency. The Hungarian government needs to focus on ensuring high levels of investment in improving the efficiency in all sectors of the economy, particularly home heating and power generation, Mr Mandil said.
Mr Mandil also highlighted the importance of securing the region’s oil supply. He commented that, although Hungary has one of the best organizations for emergency oil storage in the IEA, its gas security is under threat. Hungary needs to diversify its gas supplies in order to avoid remaining heavily reliant on Russia. In 2006, the security of Hungary’s supplies was jeopardized by a dispute between the Ukraine and Russia.
Mr Mandil concluded: particularly in the field of gas use, energy efficiency will continue to play a key role for securing future Hungarian energy supplies, and the government should make every effort to realize this potential.
Hungary has recently come under fire for supporting the extension on the Blue Stream pipeline, which transports gas across the Black Sea to Turkey. According to the Budapest Business Journal, Hungary has been accused of debasing the Nabucco pipeline that is currently being built to transport natural gas from Turkey to Austria, via Bulgaria, Romania, and Hungary.
