Are you sure?

PXE energy exchange objects to Hungarian Energy Office investigation

The Prague-based energy exchange Power Exchange Central Europe (PXE) objects to an investigation started by the Hungarian Energy Office (MEH) relating to the partnership of PXE and the Vienna energy exchange. PXE believes the investigation is targeted against the company's activity on the Hungarian electricity market, exercising unfair influence on free market economy and damaging the company's reputation, PXE CEO David Kucera said in Budapest on Wednesday.

MEH had said on May 17 that it was to start an investigation regarding partnership between PXE and the Austrian EXAA Energy Exchange Austria Abwicklungsstelle für Energieprodukte AG (EXAA). MEH wants to determine whether EXAA is trading in Hungarian electricity without a license. EXAA and PXE on May launched their joint platform for “day-ahead” electricity auctions, on which it is also possible to trade in Hungarian electricity. If EXAA does not possess the required license, that would contravene Hungarian law, MEH said.

Kucera said PXE does not need any further license for its activity in any of the EU member states under EU regulations. Nevertheless, Kucera added, PXE had applied to MEH for a local license for “day-ahead” auctions, but the office has not taken a decision since last year although it had 90 days to do so.

Kucera denied press reports that the validity of PXE's licences has been suspended.

Kucera noted that PXE's mandate of organising electricity trade in Hungary does not fall within the authority of MEH since PXE performs its activity on the regulated electricity market based on permissions issued by the Czech ministry of trade and industry and the Czech national bank.

Under PXE's alternative proposal, a multinational Central European energy market should be established. The volume of this market could make it possible to reduce the costs of energy trade. PXE would co-operate with all exchange platforms including Hungary's, Kucera emphasized.

The main shareholder of PXE is the Austrian EXAA. Hungarian electricity futures contracts have been traded on the PXE since March 2009. Trade is regulated by Czech law and the financial settlement does not fall within Hungarian authority. (MTI-Econews)