On 15 December 2008 the Hungarian Energy Office („HEO”) established the Energy Arbitration Court (“Arbitration Court”) in accordance with the provisions of Act LXXI of 1994 on Arbitration, section 169 of Act LXXXVI of 2007 on Electricity and section 131 of Act XL of 2008 on Natural Gas Supply.

 

The Arbitration Court is a legal entity, and its registered seat is in Budapest.

 

The proceedings of the Arbitration Court may take place to decide on legal disputes between the licence holders engaged in activities falling under the scope of the electricity act and the natural gas supply act relating to rights and obligations set out in legal regulations pertaining to activities governed in the aforesaid acts, or set out in contracts under such legal regulations, provided that the parties have submitted their dispute to arbitration in an arbitration clause in their contract and they are entitled to freely dispose over the subject matter of the proceedings.

 

The jurisdiction of the Arbitration Court may be established on section 3 (1) of the arbitration act as well.

 

The Arbitration Court is entitled to conduct conciliation proceedings in accordance with the provisions of Act LV of 2002 on Mediation.

The members of the Panel of Arbitrators are appointed by the Chairman of the HEO for a definite period of time. The Chairman and other employees of the HEO may not be members of the Panel of Arbitrators.

 

The Arbitration Court is represented vis-à-vis third parties, courts and other authorities by the members of the Presidential Board and other persons authorised by the Presidential Board in accordance with the by-laws of the Arbitration Court.

The operation of the Arbitration Court is funded by the founder’s contributions, the fees of the arbitration proceedings, financial earnings and other incomes.

 

The organization of the Arbitration Court:

1.    Panel of Arbitrators;
2.    Presidential Board consisting of three to five members appointed from among the
       members of the Panel of Arbitrators;
3.    Secretariat of the Arbitration Court; and
4.    Accounting Department.

The Presidential Board is the general management body of the Arbitration Court. The rules of the appointment and the operation of the Presidential Board are set out in the Deed of Foundation and the codes of the Arbitration Court.