Are you sure?

Power bourse seen reducing consumer prices

The July 20 launch of the Hungarian Power Exchange (HUPX) could have the potential to reduce consumer prices and also present smaller businesses with the opportunity to cut down on their energy spending.

The prerequisite for the bourse to actually lead to reduced electricity prices is the participation of large number of traders, KPMG’s expert Attila Ságodi told the news portal. Once that is a given, buyers will have an easy time finding the best offers. Furthermore, since power is traded transparency, it provides a reference price for the market in general.

However, Ságodi noted that the bourse in itself may not be able to offset the fact that only one third of the electricity price is the cost itself, the rest is added up by fees for the transmission system and other contributions.

The main beneficiaries of the exchange will likely be SMEs, according to Péter Kaderják, head of the REK energy research institute. Larger companies have already found the best channels to procure their energy needs. The exchange offers smaller companies similar opportunities.

The ultimate goal for Hungary is to have its electricity grid interconnected with the Western European ones. This way the HUPX could be used to also coordinate international electricity trade, Kaderják said. (BBJ)