Large producers are superior
The large electricity producer companies in the seven CEE region countries (Austria, Croatia, the Czech Republic, Hungary, Romania, Slovakia and Slovenia) have a significant supremacy, which raises prices above the competition prices, states a study by the Regional Center for Energy Policy Research (REKK), an NGO founded in 2004 at the Corvinus University of Budapest.
The supply in the electricity sectors in the region is much concentrated; a major part of production capacity is in the hand of one, or very few companies. The principle of competition requires some level of regional integration, which should be based on letting the competitive supply from Romania in the western market. The average price margin on electricity transfer is €12 to €14 per megawatt/hour, in Hungary it is about €10 per megawatt/hour at present. In proportion of the wholesale price, the margin is 25% to 40%. (Gazdasági Rádió)
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