Hungary considers changes to business power contracts following price fall

Recently, Hungary’s government announced the intention to re-evaluate any long-term power contracts that businesses signed last year with their electricity suppliers when power prices were much higher. The move is part of a series of measures aimed at targeting rising inflation and sticky prices in Hungary.

“Economic Development Minister, Marton Nagy, is believed to be behind the initiative. Nagy expressed concern at the fact that many companies have fixed the average price of power supply for the next two years at a staggering 250 EUR/MWh, while current levels in the spot market are at around 100 EUR/MWh.” Francesca Marrone, Product Manager – Energy & Commodities.

The government hasn’t made any further announcement regarding the proposal at the time of this post, and it’s unsure whether they will actually be able to enforce such intervention

However, Power Prices in Hungary and the rest of Europe have indeed seen high volatility and sharp price actions in the last year making fuel and electricity procurement a very difficult balancing act between hedging price exposure and securing supplies.

At TraditionData we offer comprehensive Hungarian and Eastern European Power forward curves which leverage the leading market share of the Tradition Power Broking desks in these territories.

Featured Product

Power

An End of Day source for Power Pricing Data, drawn directly from Tradition’s 11 brokerage desks across the globe.

Read more