By acting as licensee of transmission network and transmission system operation, MAVIR established a Feed-in tariff (FIT) Balance Group in compliance with Section 21(1) of Law LXXXVI of 2007 and has been operating it since 1 January 2008.
In accordance with the law and with reference to the reception and transmission of electricity subject to feed-in tariff system, the task of MAVIR is to operate and to balance the FIT Balance Group and to determine, to allocate and to settle, as set out in the relevant laws, the amount of electricity to be purchased by the licensees and users importing electric energy defined in Section 13(1) of Electricity Act.
Electricity producers subject to FIT (hereinafter "Sellers") are eligible to join the FIT Balance Group if they meet the relevant legal requirements.
In compliance with Section (2) of Ministerial Order No. 109/2007. (XII. 23), the members of FIT Balance Group are obliged to forecast their annual production in schedules. The Balance Group Representative shall publish, on monthly basis, the actual production data of the balance group members. Based on the actual production data and submitted schedules, the Balance Group Representative shall define the deviations in or absence of sellers' schedules and shall invoice surcharge based thereon.
The Electricity Act obliges all electric energy dealers including universal service providers, all electricity production licensees who directly sell electricity for end-users and all users who import electric energy (hereinafter together referred to as "Recipients") to receive the electric energy settled in separate Balance Group in ratio of electricity sold to end-users upon the contract with the transmission system operator and compliant with the relevant legal rules.
By acting as responsible party for FIT Balance Group, MAVIR shall enter into a balance group membership contract with the electricity generators subject to FIT. In compliance with the balance group membership contract and the relevant laws, the Balance Group Representative shall purchase the electricity generated by sellers at regulated price. The Balance Group Representative shall invoice a surcharge based on the planned schedule and the data of actual generation. The electricity purchased shall be sold to traders at a fix purchase price. During the allocation procedure, the Balance Group Representative shall define the amount of electricity to be FIT by the recipients while considering the ratio of each trader in the whole energy trading.
The sum collected from the imposition of the surcharge shall be included in the recipient price as decreasing factor, while the cost of load increase, the generators' correction and MAVIR's related liquidity cost shall appear, among others, as price increasing factor in the recipient price. MAVIR may have neither expenses nor incomes from this activity.
In accordance with the relevant provisions in the Decree, the Balance Group Representative shall inform the Hungarian Energy Office on the data of the sellers of the balance group and the allocation. On the basis of the provisions, FIT Balance Group Representative has to manage complex and integrated procedures while operating the Balance Group within the defined frames of rules. By acting as responsible party for FIT Balance Group, MAVIR gave information on the operational logic of FIT Balance Group to the electricity producers on 29 October 2007. The model introduced then has not changed later in the published decrees.