Hungary, one of the ten newest members of the European Union, has announced that harmonisation of its Electricity Law with EU directives will continue. Discrepancies in the Hungarian regulations could have hindered the country's involvement in the establishment of a Central and Southeast European regional power market, as well as its ability to meet EU requirements for full competition by 2007.

At present Hungary has both a liberalised and a regulated power market, and some players in the regulated market enjoy privileges that are in conflict with the EU's market practices. The country has undertaken to phase out the regulated market by 1 July 2007, the date that full market liberalisation must be introduced in all EU member countries.