Our study has two aims: first, it attempts to discover the true reason for the price increase in 2008, and second, it seeks to examine what prices could have emerged in the Hungarian market if the structure of the market had been more competitive. To answer these questions we use an electricity market model developed by REKK. The model calculates the market prices by simulating the decisions made by domestic power generator companies. A special feature of the model is that it takes into account that large generators may be able to manipulate market prices to their advantages.