Possibilities for reforming the Hungarian imbalance pricing systemUploaded: 1 of November, 2008

The paper analyses the Hungarian imbalance pricing system considering its affect on the relationship between the Hungarian wholesale market and the demanded balancing energy, and also with respect to international experiences - Nordel and the Belgian system. The recommendations aim to modify the current imbalance pricing system so that BRPs are incentivised to be balanced without placing on them significant costs. The aim is to provide a cheap regime where in the same time the balancing system would only have to handle imbalances that are really not foreseen.