Mavir to hold daily cross-border capacity auctions
From the start of 2007, Hungarian-Slovak cross-border capacity auctions will be held every day in order to better use capacity, Antal Tombor, CEO of grid operator Mavir Zrt announced on Tuesday.
Between 50MW and 200MW of unused capacity purchased at monthly auctions will be sold at the daily auctions, Tombor said. He added that a new station completed in Győr last week had increased available cross-border capacity for electricity from the north of Hungary from 400MW to 1,400MW.
Asked why private companies cannot expand capacity with a 120kV power line crossing the border, Tombor said such lines may not be privately owned under an EU directive. Any electricity from such a line would have to be sold at auction, he said. He added that Mavir's counterpart in Slovakia has been firmly against the construction of a 120kV connection crossing the border.
Tombor said Mavir breaks even on its grid-operating activities, but makes profits on its transfer activities. The company expects after-tax profits of Ft 7.6 billion on revenue of Ft 83 billion in 2006, he said. Mavir is owned by the state-owned Hungarian Electricity Works (MVM) Zrt.
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