Following on from our previous case study of the banking and financial services sector, in this chapter we consider the electricity sector and the extent of regulatory convergence towards EU rules. As with the banking sector, foreign ownership of the sector has been extensive in Hungary with the Hungarian state deciding to sell companies to strategic investors from the US and West Europe (especially German companies). In fact, energy companies were some of the first companies to be sold by the Hungarian state to foreign investors. There was considerable debate as to whether the price for the companies that the foreign energy firms paid was a fair one. However, the income raised by the government contributed to paying off Hungary’s significant external debt.1