Hungarian Power Exchange
|Headquarters:||Dévai utca 26-28, 1134 Budapest, Hungary|
|Date of foundation:||9 May 2007|
|Traded commodities and traded volumes in 2019:||Day-Ahead Market:|
|Current number of employees (March 2020):||35|
As an important part of the energy market liberalization in Hungary, the national TSO MAVIR has established the Hungarian Power Exchange, Company Limited by Shares, as it subsidiary in 2010. HUPX Ltd. is the operator of the organized Hungarian spot power market with leading position in Central and Eastern Europe. HUPX is licenced as a NEMO (Nominated Electricity Market Operator) by the National Regulatory Authority of Hungary (MEKH).
Through its regulation and adopted trading framework, it promotes the liquidity of the Hungarian energy market, and on regional level supports the flow of the working capital in the sector. The core activity of HUPX – providing reference price and exchange trading platform – is effectively contributing to the development of the Hungarian electricity market. For the development of the market, it is important that the largest part of the electricity trading happens through the secure system of the organized exchange. In order to do this, there is a need for adequate legal background, transparent conditions, unified access for all participants, and efficient use of resources, as well as value-for-money transaction costs and clear settlement prices as a reference price.
The transparent, unified market mechanisms and liberalized market operations serve the security of domestic energy supply, the cost-effectiveness of trade and the boom in electricity industry developments and investments. The organized electricity market operated by HUPX Ltd. contributes to the efficiency of total domestic production and to the moderation of the electricity prices for consumers.
On HUPX DAM (day-ahead market) standard hourly and block day-ahead electricity products can be traded. The day-ahead market of HUPX is taking part in the market coupling (4M MC) between Czech, Slovak, Hungarian and Romanian markets.
4M MC is a day-ahead implicit allocation method based on ATC (Available Transfer Capacity) that seeks to maximize compatibility with the EU target model, while the 4M solution can be considered as an intermediate step in the Central-Eastern European and later “Core” regional solution.
In order to further develop the Hungarian electricity market, it is essential to ensure that trading and delivery are realized the closest possible to the execution. In recognition of this, HUPX has established the Intraday Market IDM, which has started its operation on 9 March 2016.