HUPX

Energy Business Motion

History of the market coupling

The approval of the Third Energy Package (Regulation (EC) No 714/2009) serves as a basis for the implementation of the market coupling and provides regulatory background for the preparation of the Network Codes for the purpose of cross border trading of electricity and gas. Main objectives of the Energy Package are maintaining the security of energy supply, increasing competitiveness and ensuring that all consumers can purchase energy at affordable prices. For the purpose of the above written EU published the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (CACM). The target model for the electricity markets is described in Article 3 of CACM. This is the establishment of the price coupling based on implicit capacity allocation with a single algorithm. These are the Single Day-ahead Coupling (SDAC) and the Single Intraday Coupling (SIDC). HUPX, as an active participant of the European market, makes big effort to execute these aims through the following steps.

Day-ahead market

Before the launch of CZ-SK-HU MC only the CZ-SK day-ahead (D-1) market-coupling was functional, organized by OTE (Czech Electricity and Gas Market Operator) and OKTE (Slovakian Short-term electricity Market Operator) as power market organizers (PX) and supported by ČEPS and SEPS as the respective transmission system operators (TSO). During this period, Hungary was not involved in any market coupling. The Hungarian local day-ahead market was operated by HUPX from 20 July 2010. In August 2011, Block products were introduced on HUPX.

Hungary joined the CZ-SK market coupling on 11 September 2012. As a result of the project, the operation of an ATC based day-ahead implicit allocation started on HU-SK border as well.

Romania, as an EU member state, has also been committed to meet the requirements and expectations. Romanian NRA, TSO and PX sent their Letter of Intent on 6 December 2011 to emphasize their willingness to join the CZ-SK-HU MC. In the planning period the processes of the PCR based market coupling were introduced and worked out. Later this method was defined as the starting point of the Single Day-Ahead Coupling (SDAC). The 4M market coupling was successfully implemented on 19 November 2014.​​

Intraday market

HUPX is currently working on the accomplishment of the intraday market coupling, therefore participating in the implementation of the XBID solution defined as the target model of the intraday market coupling.

XBID project is an agreement between six power exchanges (APX, BELPEX, EPEX SPOT, GME, Nord Pool, OME) that was made to help the implementation of the intraday market coupling and was later extended with the relevant TSOs. The members of XBID established an Accession Stream working group to which every non-XBID member country could join in order to prepare for implementation of the market coupling. HUPX is currently participating in this working group to comply with the requirements of the EU. Besides this HUPX has also established a Local Implementation Project (LIP 15) in co-operation with the German, Austrian, Czech, Romanian, Slovenian and Croatian parties.