Hungary moves closer to achieving final energy savings target

On 12 June 2025, Hungary will take a notable step in meeting its energy savings target when the most recent legislative change to Act LVII of 2015 on Energy Efficiency (also known as the Energy Efficiency Act) comes into effect.

The background to the enactment of the Energy Efficient Act are as follows: over the past six months, the Hungarian energy efficiency obligation scheme (in Hungarian: energiahatékonysági kötelezettségi rendszer) (EEOS) underwent significant changes. Under the EEOS, obligated parties (i.e. electricity, natural gas and fuel traders selling fuel to end users and universal service providers) are required to achieve energy savings for end users corresponding to a specified proportion of the amount of energy sold or delivered to end users in Hungary in the second year preceding the reference year.

At the end of 2024, minor increases were made to the rate of the energy-saving obligation for the years 2028 to 2030. Although this change was seen as progress toward energy-savings targets, it was considered insufficient for the goal of attaining the energy savings target set for 2030 in Hungary’s National Energy and Climate Plan.

The changes to the Energy Efficiency Act, however, will help Hungary meet this target. The key changes to the Energy Efficiency Act include the following:

Increased and extended energy saving obligation

A significant change affecting obligated parties includes the increased rates of mandatory energy savings and the extension of energy saving obligations until 2035, as briefly shown in the table below.

 Note that while the overall energy saving obligations is becoming stricter, it will not apply to fuel traders, as they will be required to achieve the annual energy savings equivalent to 0.5% of the energy sold or delivered to final users in Hungary in the second year preceding each year between 2025 and 2035.

Focus on long-term energy efficiency measures and the energy efficiency of residential buildings

Up to a specific proportion, the energy savings obligation for a given year must be achieved through certified energy savings resulting from individual energy efficiency measures with a minimum life time of six years.

In addition, a certain proportion of the annual energy savings obligation, which will be outlined in a separate decree, must be derived from individual energy efficiency measures improving the energy efficiency of residential buildings, which is anticipated to stimulate the construction industry.

New entrants to the HEM market

A long-awaited change is underway with the extension of marketability of certified energy savings (in Hungarian: hitelesített energiamegtakarítások, HEM) whereby HEMs may be transferred not only to the obligated parties, but also to any commercial entities (with exceptions) and the Hungarian state.

Changes to the EEOS catalogue

Changes allowing for greater influence over energy efficiency measures are being introduced. The Minister of Energy will periodically review and revise the EEOS catalogue. Moreover, energy savings above 0.5% of the basis for the energy saving obligation must be achieved by individual energy efficiency measures on the basis of the revised EEOS catalogue. A change in the list of energy efficiency measures in the EEOS catalogue is also expected to better align with the objectives of the recent legislative changes.

For more information on this legislative change and assistance with interpreting the new provisions, contact your regular CMS advisor or local CMS experts.

The article was co-authored by Rebeka Erdősi.