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Management of the Hungarian Energy Office - Magyar Energia Hivatal

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With regard to <strong>the</strong> export <strong>of</strong> electricity, <strong>the</strong> capacity available<br />

for transmissions from Hungary to Croatia rose by 150 MW to<br />

600 MW. There was a signifi cant drop in capacities available<br />

for transports from Hungary to Austria. 100 MW baseload<br />

and 50 MW peak capacities were allocated compared to<br />

<strong>the</strong> previous year’s 200 MW baseload and 150 MW peak<br />

capacities. However, <strong>the</strong>re was a signifi cant rise in capacities<br />

required for transmissions to Romania and Serbia; from 50<br />

MW to 150 MW. There was no annual capacity auctioned for<br />

transmissions from Ukraine.<br />

Results <strong>of</strong> <strong>the</strong> annual auction were compensated to a<br />

certain extent by capacities allocated at monthly auctions.<br />

Accordingly, with regard to <strong>the</strong> most important Austrian and<br />

Slovakian import, <strong>the</strong> quantity <strong>of</strong> monthly capacity grew by<br />

average 70 MW and 200 MW, respectively, in 2009 compared<br />

to 2008. With regard to export, <strong>the</strong> average monthly quantity<br />

<strong>of</strong> Croatian export declined by approximately 70 MW.<br />

On <strong>the</strong> <strong>Hungarian</strong>-Ukrainien intersection, <strong>the</strong> scheme <strong>of</strong><br />

unilateral monthly auction was maintained also in 2009, in<br />

addition to which daily auctions were introduced in <strong>the</strong> second<br />

half <strong>of</strong> <strong>the</strong> year. There were changes in <strong>the</strong> auction rules also<br />

on <strong>the</strong> Romanian-<strong>Hungarian</strong> intersection, where joint auction<br />

has been introduced with regard to each period. Accordingly,<br />

long term – annual and monthly – auctions are held by <strong>the</strong><br />

Romanian system operator, while <strong>the</strong> daily auction is held by<br />

MAVIR Zrt. since December 2009.<br />

With regard to import directions, MAVIR Zrt. did not call<br />

to auction on <strong>the</strong> determinant Slovakian intersection in<br />

2008 because <strong>of</strong> <strong>the</strong> decreased available capacities and <strong>of</strong><br />

<strong>the</strong> already allocated capacities still reserved for 2008. As a<br />

consequence, <strong>the</strong> settlement price for cross-border capacity<br />

that emerged for 2008 was 16.79 EUR/MWh on <strong>the</strong> Romanian<br />

and 12.17 EUR/MWh on <strong>the</strong> Austrian intersections. With<br />

regard to 2009, settlement prices slightly decreased on <strong>the</strong><br />

Romanian intersections to 14.47 EUR/MWh, while <strong>the</strong><br />

Austrian settlement price grew moderately to 12.91 EUR/<br />

MWh. (Certainly, <strong>the</strong>se prices assume 100% utilization).<br />

The situation in <strong>the</strong> South Eastern European region that<br />

evolved in 2008 because <strong>of</strong> <strong>the</strong> extreme wea<strong>the</strong>r conditions<br />

in 2007 (<strong>the</strong> extraordinary drough implied a signifi cant rise in<br />

electricity import) ceased. Accordingly, while <strong>the</strong> settlement<br />

cross-border price <strong>of</strong> <strong>the</strong> 2008 auction was 11.86 EUR/MWh<br />

on <strong>the</strong> Croatian intersection and 8.95 EUR/MWh on <strong>the</strong><br />

Serbian intersection, settlement prices show a drastic drop for<br />

2009 to 0.58 EUR/MWh and 1.88 EUR/MWh, respectively.<br />

In December 2009, <strong>the</strong> annual auction for 2010 brought <strong>the</strong><br />

following changes. The changes in <strong>the</strong> amounts <strong>of</strong> capacities<br />

relative to <strong>the</strong> previous years are as follows. The import<br />

capacity from Austria decreased to 120 MW baseload (by 60<br />

MW) and 120 MW peak, from Slovakia to 300 MW (by 100<br />

MW), and increased to 200 MW (by 50 MW) from Romania.<br />

The reason behind <strong>the</strong> falling import capacities from Austria<br />

and Slovakia is that <strong>the</strong> transmission system operators <strong>of</strong> <strong>the</strong><br />

Central Eastern European region are planning to introduce a<br />

annual report 2009<br />

coordinated fl ow-based capacity auction in 2010, <strong>the</strong>refore –<br />

in agreement with <strong>the</strong> regulatory authorities – <strong>the</strong>y decreased<br />

<strong>the</strong> amount <strong>of</strong> <strong>the</strong> annual capacities by 40% on <strong>the</strong> debit <strong>of</strong><br />

<strong>the</strong> monthly auctions (this practically means that <strong>the</strong> values<br />

did not change but capacities will be allocated on monthly<br />

auctions instead <strong>of</strong> <strong>the</strong> annual one).<br />

With regard to export directions, <strong>the</strong>re were not any change<br />

in available transmission capacities to Croatia, Serbia and<br />

Romania (allocated capacities are 600 MW, 100 MW and 150<br />

MW, respectively).<br />

Regulation <strong>of</strong> responsibilities <strong>of</strong> <strong>the</strong> transmission system<br />

operator and distribution network companies<br />

In 2009, <strong>the</strong>re were not any legal changes in <strong>the</strong> responsibilities<br />

<strong>of</strong> <strong>the</strong> distribution network licensees.<br />

Unbundling <strong>of</strong> activities<br />

Requirements for unbundling in <strong>the</strong> <strong>Hungarian</strong> electricity<br />

industry<br />

In 2009, <strong>the</strong>re were not any signifi cant changes with regard to<br />

<strong>the</strong> regulation <strong>of</strong> unbundling <strong>of</strong> activities.<br />

annual report 2009 | 15

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