Hungary is a landlocked country in Central Europe. Situated within the Carpathian Basin, its land area of more than 93 thousand km2 is bordered by seven countries.
Hungary is a very centralized country, with most of the power and population concentrated in and around the capital city of Budapest. Administratively, the country is divided into 19 counties and the capital city. The counties are further divided into 197 districts – 23 of them in Budapest and 174 in other counties. Each county and district in Budapest is self-governed. The districts are then further divided into towns and villages. Counties, districts, and municipalities have different roles and responsibilities relating to local government with the role of public water provision mostly falling on municipalities.
Country Overview | Year | Figure |
---|---|---|
Population | 2021 | 9,709,886 |
Country Area (km2) | 2021 | 93,030 |
GDP (billion USD) | 2021 | 182.28 |
GDP per capita (USD) | 2021 | 18,772 |
World Bank Income Group | 2022 | Upper middle Income |
World Bank Region | 2022 | Europe & Central Asia |
Water and Wastewater Sector Structure
The Water and wastewater service provision is a responsibility of central government and municipalities, depending on the ownership of assets. Central government owns five regional utilities while the rest are municipal utilities serving multiple towns and villages. Assets of these utilities are mostly owned by participating municipalities. Private sector is minimally involved in the market, with two water and wastewater concessions (Szeged and Szolnok) and one wastewater only concession (Budapest). These schemes serve 2.5% of the population in the country. State and municipal water utilities serve around 92% of the population while the rest relies on self-provision.
Today, the water sector is composed of 40 regulated water utilities, a consequence of a market consolidation during the water sector reform that started in 2011. One of the main requirements for obtaining a license for operation is a minimum utility size of 150,000 population equivalent (p.e.).
Authority | Level | Role |
---|---|---|
The Ministry of National Development | National | Responsible for approving the tariffs proposed by HEA. |
The General Directorate of Water Management | National | Part of the Ministry of Interior. Along with its regional directorates, it's responsible for the management and protection of water resources and the governance of administrative water authorities. |
The National Inspectorate for Environment, Nature and Water | National | Part of the Ministry of Agriculture. Responsible for monitoring effluent discharges and the environmental status of water bodies. It also issues water extraction and wastewater discharge licenses. |
The National Public Health and Medical Officer Service | National | Part of the Ministry of Human Resources. Responsible for monitoring drinking water quality. |
Hungarian Energy and Public Utility Regulatory Authority (HEA) | National | Key institution that regulates and oversees the water sector in the country. |
Nemzeti VízműVek Zrt. | National | A state-owned company that exercises the ownership rights and obligations over state-owned water utility service companies. |
Municipalities | Local | Responsible for water and wastewater service provision in their respective territories. |
The Hungarian Energy and Public Utility Regulatory Authority (HEA) was founded in 2013. It is a multi-sector independent regulatory body responsible for licensing, supervision, price regulation, and price preparatory tasks related to electricity, natural gas, district heating, and water utility supply. The authority employs around 330 people and has an annual budget of €31 million. The management of this multi-sector regulator is composed of the president and five vice presidents, with the vice-president of Public Utility Services being the most responsible person for the water sector.
Besides the aforementioned tasks, HEA is also responsible for approving the „rolling development plans“, which are long-term development plans (15 years) consisting of development, replacement, and investment design plans.
In 2014, the Authority established the National Water Utility Registry, a public registry of water utility systems, service providers, and responsible entities.
Water and Wastewater Regulations
Legislation and Policies | Year | Description |
---|---|---|
Act CCIX on Water Utility Supply (Vksztv.) | 2011 | Provides a legal framework for the water sector reform, as well as protection of national water assets and the development of the sector, among others. |
Act XXII on the Hungarian Energy and Public Utility Regulatory Authority | 2013 | Establishes the Hungarian Utilities and Energy Control Agency (HEA) as an independent regulatory body, its responsibilities, rules regarding organization and financing. |
Areas of Regulation
Areas | Hungarian Energy and Public Utility Regulatory Authority (HEA) |
---|---|
Tariff Calculation | Yes |
Tariff Approval | Yes |
Licensing Water and/or Wastewater Service Providers | Yes |
Business plans approvals | Yes |
Performance indicators monitoring | Yes |
Economic Data Collection | Yes |
Technical Data Collection | Yes |
Coming Soon