Prvo Plinarsko Društvo (PPD), a Croatian company specialised in the trade and supply of natural gas, said on Friday that it would appeal a Hungarian regulator's decision to fine it €1.35 million over its violation of the EU REMIT regulation on wholesale energy market integrity and transparency.

The Hungarian Energy and Public Utility Regulatory Authority (MEKH) established that from 17 to 26 January 2022, this Croatian private company took part in an auction for a lease of natural gas transport capacities for natural gas supplies that were supposed to be transported across the Mosonmagyaróvár border crossing from Austria to Hungary, but that PPD actually did not have real intentions to transport the gas supplies, and that it only took part in the auction to raise the transport price.

Therefore the Hungarian regulator penalised the PPD, accusing it of violating the EU REMIT regulation and contributing to the gas transport price rise.

The PPD said today that during the auction concerned, the gas transport price had increased to levels which the PPD found unacceptable and the company found an alternative, cheaper transport route from Slovakia, which was why it withdrew from the said auction.

The PPD dismisses the accusations about its engagement in manipulating the market and insists that it opted for the least expensive choice in the spirit of legal market competition.

The Vukovar-based company is going to appeal the decision, which the MEKH adopted on 7 June, and pay the fine while waiting for the outcome of the appeal.