Energy Efficiency Obligation Scheme (EKR)
The Energy Efficiency Obligation Scheme (EKR) is based on a European Union directive aimed at reducing Hungary’s CO₂ emissions, representing a significant step towards sustainable development. Through participation in the EKR, your company, municipality, or association can generate additional income, while also reducing energy consumption and lowering energy costs.
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How EKR Works
Under the Energy Efficiency Obligation Scheme (EKR), obligated parties (energy traders) are required to collect Certified Energy Savings (HEM). If they fall short of the mandated savings, they must pay a penalty. To meet their targets, these energy traders can support your company, municipality, or association in implementing energy efficiency projects — such as lighting upgrades, process optimisation, and other measures — that contribute to reducing Hungary’s energy consumption and promoting a more sustainable future.
A Certified Energy Saving (HEM) is considered a tradable asset, meaning it can be sold — typically generating millions of forints in revenue for the party implementing the energy-saving project.
Axing Zrt. offers a fully comprehensive service from identifying initial saving opportunities to auditing and certifying the investment or measure, and even sourcing potential buyers. Thanks to our extensive network within the energy market, we guarantee that the certified energy savings we deliver are sold at the most favourable possible price.
Questions and Answers
What Is the Legal Framework for EKR Compliance?
The legal basis for the Energy Efficiency Obligation Scheme (EKR) is set out in Act LVII of 2015 on Energy Efficiency (https://net.jogtar.hu/jogszabaly?docid=a1500057.tv). This legislation requires energy traders (Obligated Parties) to achieve or secure a predetermined amount of annual energy savings, either within their own operations or through financial support provided to end users. Savings are only eligible for recognition if they result from what is defined as a “material contribution”. In addition, the energy savings must be audited and certified by an authorised energy auditing organisation — such as Axing Zrt. — in order to be officially counted.
What Is a HEM?
The certification of the energy savings achieved through the measure creates an asset with monetary value (Certified Energy Saving), which can be sold either directly or on a secondary market established for this purpose, exclusively to energy traders.
HEMs are registered by the Hungarian Energy and Public Utility Regulatory Authority (MEKH). If the Obligated Parties fail to meet their annual obligation, they must pay a penalty of HUF 50,000/GJ. The high level of obligation creates continuous demand for HEMs on the market.
How Is a HEM Created?
The basis of a HEM is the investment or measure that results in energy savings. To certify it, the existence of material contribution must be proven — that is, the measure or investment would not have been implemented without the supporting effect of the EKR. If the measure is included in the list of standard measures maintained by MEKH, the energy savings are calculated using a predefined methodology. If it is not included, a customised energy audit must be conducted to determine the amount of EKR-compliant energy savings attributable to the measure. During the calculation, the specialist must follow a specific set of rules that take into account minimum energy efficiency requirements, expected lifespan, system depreciation, and several other technical conditions.
Who Are the Obligated Parties Under the EKR?
According to the law, Obligated Parties are energy traders who sell electricity, piped gas, or fuel to end users.
To meet their obligations, they purchase Certified Energy Savings (HEMs) on the market, the value of which benefits the organisations implementing energy efficiency projects. The largest Obligated Parties include: MVM, MOL, OMV, Shell, Eon, E2, etc.
What Qualifies as Material Contribution?
Any action or service that may encourage end users to go ahead with an investment is considered acceptable. Examples include on-site energy consulting, issuing energy certificates, calculating savings and payback periods, presenting state subsidies, checking grant eligibility, assisting with grant applications, preparing purchase offers, or holding preliminary consultations before the investment is implemented.
Additional examples of material contribution:
- Providing financial support,
- Targeted advice on specific energy efficiency measures,
- Technical assistance for planning or implementation.
What Are the Typical Phases of an EKR Project?
The material contribution takes place before the project begins. The energy audit is carried out after the project is completed, followed by certification based on the audit and the documentation of the investment or measure. This results in the creation of a tradable asset (HEM), and the project concludes with the sale of this asset.
In Which Project Phases Can Axing Zrt. Provide Support?
Axing Zrt. offers offers services covering the entire process:
- Providing and verifying material contribution
- Calculating and auditing energy savings
- Certification
- Supporting the sale of HEMs
As Axing Zrt. maintains relationships with all major energy traders, we are also a reliable partner for our clients in the sale of Certified Energy Savings.
Who Owns the Energy Saving as a Tradable Asset?
The identity of the initial rights holder is determined by a written agreement between the parties involved in the investment. The tradable asset typically arises in favour of either the end user or the party providing the material contribution. The beneficiary may be a legal entity, private individual, or institution.
For How Much Can HEMs Be Sold on the Market?
The statutory amount of HUF 50,000/GJ represents a theoretical upper limit for HEM pricing.
Based on experience, prices vary daily and show significant fluctuations. Axing Zrt. offers consistently secures the highest possible price for its clients. In the longer term, the increasing obligations imposed on energy traders may lead to a rise in HEM market prices.