The Ministry of Energy has issued a decision designating the Hungarian Electricity Exchange (HUPX) – Day Ahead Market as the reference energy exchange for the upcoming year.
According to the Ministry, data on electricity prices from this exchange will be utilized for calculating the concession fee.
“This obligation arises from the Regulation on the method of determining the concession fee for any business or legal entity using water accumulation and/or waterways for electricity production in hydropower plants. This regulation stipulates that the government body responsible for energy affairs designates the reference energy exchange,” the statement reads.
The regulation specifies that the concession fee is calculated as a percentage of revenue. The revenue generated from this is derived from the product of the electricity price and the amount of electricity produced.
The average annual electricity price for the year in which the concession fee is calculated will be based on the average annual price from the designated reference energy exchange.
“In light of this, and to facilitate the implementation of this regulation, a decision has been made to establish the reference energy exchange,” the Ministry concluded.
