1 / 27

Industrial Energy Consumers Forum (IEF) Hungary

Industrial Energy Consumers Forum (IEF) Hungary. Electricity Market Liberalization in Hungary 10 September 2003, Prague. IEF – Industrial Energy Consum ers’ Forum. IEF: a not-for-profit NGO Date of establishment: March 2000 Legal form: association (of public interest)

parson
Download Presentation

Industrial Energy Consumers Forum (IEF) Hungary

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Industrial Energy Consumers Forum (IEF) Hungary Electricity Market Liberalization in Hungary 10 September 2003, Prague

  2. IEF – Industrial Energy Consumers’ Forum • IEF: a not-for-profit NGO • Date of establishment: March 2000 • Legal form: association (of public interest) • „Scope of authority”: network energy (natural gas, heat & electricity) • Target group: non-household sector AEM/SVSE – Česká energetika ve Sjednocené Evropě

  3. Leading Members AEM/SVSE – Česká energetika ve Sjednocené Evropě

  4. The Approach • The Market Background • The Electricity Act No. CX of 2001 • New Market Structure & Mechanism AEM/SVSE – Česká energetika ve Sjednocené Evropě

  5. 1-1 Electricity flows (GWh in 2002) AEM/SVSE – Česká energetika ve Sjednocené Evropě

  6. 1-2 Physical Flows (GWh in 2002) AEM/SVSE – Česká energetika ve Sjednocené Evropě

  7. 1-3 Ownership Structure AEM/SVSE – Česká energetika ve Sjednocené Evropě

  8. 1-4 Consumers’ Expectations IEF – Accenture market survey conducted in early 2001 • 51 large electricity and/or natural gas consumer • Sectors: metallurgy, metall processing, chemical/pharma industry, food industry, transportation, packaging, building material, power plants, utilities, etc. (charts: electricity on the left, NG on the right) AEM/SVSE – Česká energetika ve Sjednocené Evropě

  9. 3% 10% 10% 15% 19% 8% 1 July 2001 1 January 2002 Other date EU-accession date 16% 52% 67% 1-4 Survey (1) Starting date Consumers would like to see the earliest possible date, which allows a well-based market opening up. 1 January 2002 for electricity (with no reservation) the earliest date to achieve price advanteges and quality improvement 1 January 2002 for natural gas too (but following accelerated preparation) the earliest date to achieve improved quality and eventual price advanteges year beginning date, anyway AEM/SVSE – Česká energetika ve Sjednocené Evropě

  10. 3% 10% 5% Between 0-10% 3% Between 10-15% Between 15-20% Above 20% 53% 0%, or no decrease No reply 26% 1-4 Survey (2) Short-term electricity prices Majority prognosticates price decrease between 0-15% on short-term. in real terms, incl. inflation, price rises for primary energy sources, and network fees more pessimistic, than the preliminary modelling suggested (15-40%) AEM/SVSE – Česká energetika ve Sjednocené Evropě

  11. 18% 26% 44% 45% Increase Decrease No change 38% 29% 1-4 Survey (3) Long-term energy prices Uncertainty regarding the long-term prices. primary energy source prices and inflation in the background of increased price prognoses competitive market forces in the background of price decrease prognoses world market price trends in the background of increased price prognoses competitive market forces in the background of price decrease prognoses AEM/SVSE – Česká energetika ve Sjednocené Evropě

  12. 1-5 Industrial Electricity Prices (USD/MWh) Source: OECD-IEA, RAO UES AEM/SVSE – Česká energetika ve Sjednocené Evropě

  13. 2-1 Hungarian prelude to liberalization… AEM/SVSE – Česká energetika ve Sjednocené Evropě

  14. 2-2 Act No. CX of 2001 on Electricity • A framework law • RTPA, ISO, HEO, dual market, balance groups, import limits • Detailed rules in: • Eligible consumers • Importing rules • Stranded (transitional) costs • Commercial Code & ISO Code Gov’t & ministry orders AEM/SVSE – Česká energetika ve Sjednocené Evropě

  15. 2-3 Double Market Structure Power Plants Binded for Public Purposes Marketable Import MVM as Public Wholesaler Traders Regional Public Electricity Suppliers Protected/captive consumers Eligible consumers AEM/SVSE – Česká energetika ve Sjednocené Evropě

  16. 3-1 Traders & Their Backgrounds/Clients Mátra Power Plant Magyar Áramszolgáltató (RWE) ??? Debrecen CCGT + imports Áramkereskedelmi Kft (E.on Hungária) MAL Rt, MOL Rt Budapesti Power Plant + imports D-Energia (EdF) ??? Paks NP, Vértes Plant PPAs + imports MVM Partner (MVM) GE Lighting Csepel Power Plant + imports Entrade (ATEL) BorsodChem Ukrainian Contracts System Consulting MVM AEM/SVSE – Česká energetika ve Sjednocené Evropě

  17. 3-2 Import ATC (Q1-Q2 2003) 150 MW 150 MW 450 MW AEM/SVSE – Česká energetika ve Sjednocené Evropě

  18. 3-3 Domestic Capacities Limits to market opening: • Regulated generation prices till 2004 • Gridlocked PPA portfolio • Import limitation (50%) till EU-accession • Potential import refusal + ATC issues • Fair competition rules and network access, without real supply choice ? • Actually available: 300 MW (from which competitive: 200 MW) AEM/SVSE – Česká energetika ve Sjednocené Evropě

  19. 3-4 (Future) Capacities • Import ATC auctions (by MAVIR ISO) • Domestic capacities: • already marketable (partially competitive) • renegotiated PPAs (hardly) • MVM auction sales of unnecessary (for public purposes) power • Capacities should catch-up with demand AEM/SVSE – Česká energetika ve Sjednocené Evropě

  20. 3-5 Demand Side Eligible consumers: • > 6,5 GWh/year = cca. 300 companies (33%) • > 100 GWh/year 20 companies (20%) • > 10 GWh/year 140 companies (10%) AEM/SVSE – Česká energetika ve Sjednocené Evropě

  21. 3-6 Contracts • Power (commodity) contracts • non-scheduled full supply • non-scheduled partial supplies • schedule based • Balance Group contract • Network access & usage contracts • Switching: 30 days termination notice until 1 July 2003, then 6 months – co-operative former suppliers AEM/SVSE – Česká energetika ve Sjednocené Evropě

  22. 3-7 Hungarian Co. considerations (1) 1/Price Sensitivity 2/ Damage/risk Sensitivity Maintaining Environmental issues competitiveness Own plants Equipments Supply/sales to customers Price level Quality 3/ Client Service AEM/SVSE – Česká energetika ve Sjednocené Evropě

  23. 3-7 Hungarian Co. considerations (2) Trading freedom direct market access: OTC, PX portfolio management structured purchase of partial quantities partial supply contract full supply contract Price uncertainties Flexibility & Risk Management Dependence & Rigid Prices AEM/SVSE – Česká energetika ve Sjednocené Evropě

  24. 3-8 Current Power Contracts (1) • BorsodChem (700 GWh) • IPP (40 MW) + partial supply contracts with Entrade in February • Hungarian Aluminium (750 GWh) • two plants – two contracts with E.on from March • GE Lighting (180 GWh) • full supply for 6 plants with MVM Partner from April • Ózd Metallurgy (300 GWh) imports on its own • 51 consumers, representing 5,7 TWh (18%) on the market AEM/SVSE – Česká energetika ve Sjednocené Evropě

  25. 3-8 Current Power Contracts (2) • Free market prices are 5-15 % below the monopol prices (HUF 11-12) AEM/SVSE – Česká energetika ve Sjednocené Evropě

  26. 3-8 Summary Electricity Market in September 2003: • After the market opening up, but before the real competition yet AEM/SVSE – Česká energetika ve Sjednocené Evropě

  27. Thanks for your kind attention ! Please send your comments: office@ief.hu Visit our homepage: www.ief.hu +www.energia.lap.hu Ipari Energiafogyasztók Fóruma - 1137 Budapest, Jászai Mari tér 6. Telephone: (+36-1) 237 1380 Telefax: (+36-1) 359 6440 AEM/SVSE – Česká energetika ve Sjednocené Evropě

More Related