Hungary to reform Energy Efficiency Obligation System

Hungary is restructuring its Energy Efficiency Obligation System (EKR) to create a more transparent and predictable framework for energy savings. According to András Tótth, State Secretary for Energy at the Ministry of Economy and Energy, the changes follow consultations with industrial stakeholders.

The current system, which has been in place since 2021 based on EU requirements, mandates that energy suppliers and traders invest a portion of their turnover into efficiency improvements. However, officials noted that the existing model has suffered from low efficiency and opportunities for abuse. The new regulations aim to minimize these loopholes through increased oversight and stricter sanctions.

The reformed EKR will shift its primary focus toward motivating the industrial sector to reduce energy consumption, while residential efforts will target energy-poor households. New legislation is expected to be adopted this year, with the updated system set to take effect on January 1, 2027. Experts are currently working to revise the catalog of eligible projects to ensure economic benefit and stability within the energy sector.