First-year experience with the Energy Efficiency Obligation Scheme in Hungary


MEHI presents the experiences of the first year after the introduction of the Energy Efficiency Obligation Scheme (EEOS) in Hungary. The study summarises the feedback from the stakeholders and makes recommendations for further development of the scheme based on regulatory aspects and international best practices.

The Energy Efficiency Obligation Scheme (EEOS) was introduced in 2021 in Hungary, as a key energy efficiency policy measure of the government for the next decade. The importance of the EEOS is driven by EU and national targets and commitments: energy efficiency is a cornerstone of the green transition to climate neutrality by 2050 and one of the most effective means to achieve climate targets. For Hungary, stepping up energy efficiency investments is also a competitiveness issue, and building renovation would significantly contribute to energy affordability and reduce import dependency before 2030.

Domestic energy policy documents (NES, NEKT) identify the EEOS as the most important policy measure. Much therefore depends on the development and successful functioning of the EEOS regulatory framework. The EEOS has been successful in boosting energy efficiency investments in several countries abroad (e.g. Austria, Denmark, France, Italy), but there are many examples of ineffective operation and prolonged learning years (e.g. Poland). With the introduction of the ERA in 2021, there is little time left to “find the way”, and the successful transposition of international experience, the efficient and flexible design and operation of the domestic framework will play a key role in ensuring that domestic commitments can be met.

The present study aims to make recommendations for improving the effectiveness of the EEOS, based on the experience of the first year after its introduction, feedback from stakeholders, regulatory considerations and international best practices. The study briefly outlines the significance of the domestic introduction of the EEOS and the main regulatory milestones achieved so far. At the end of 2021, MEHI experts conducted in-depth interviews with a number of statutory auditors and audit organisations, asking them about the most important lessons learned in the first year after the introduction of the system, the problems they perceived and how they could be mitigated. We also asked about any positive experiences and stakeholders’ expectations. The map of problems that emerged from the interviews formed the basis for the questionnaire survey of domestic obligated companies carried out a few weeks later. The aim of the survey was to assess the first year of the ERA on the basis of feedback from market players.

On the basis of the in-depth interviews, the survey and the international experience with EEOS, the study provides a detailed analysis and recommendations for further development of the Hunagrian regulatory framework. Our proposals for amendments and additions to the EEOS’s domestic legislation are presented grouped under two headings:

  • regulatory proposals to correct and clarify the issues currently regulated;
  • issues requiring further detailed rules.

Among the proposals, particular emphasis is given to the residential sector and to measures needed to accelerate residential building energy renovation.

MEHI EEOS first year (2022) executive summary download

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