The Hungarian Energy Office (MEH) has launched an investigation into Significant Market Powers (SMPs) on the wholesale and system-level electricity market, MEH announced on Wednesday.
If MEH identifies a company as an SMP, it has the right to oblige the company to hold public auctions and to set a limit for its wholesale prices.
MEH has classified MVM Trade, the trade unit of the Hungarian Electricity Works (MVM) as a significant market power as a result of the first such investigation carried out last year. MEH required MVM Trade to hold a public auction to sell electricity at an MEH-stipulated price at the time.
MVM Trade was also one of the companies identified as an SMP with regard to system-level services on the market for reserve capacities to level out fluctuations in power consumption. On the market for reserve capacities for the management of operating disruptions, MEH identified another member of the MVM group, MVM GTER as an SMP.
MEH noted that the investigation takes six months under the law and it can be extended once, by three months. (MTI-ECONEWS)