Publications / Articles
Cost developments of operating reserves and pricing strategy of regulating power plants in recent yearsPublished: 1 of March, 2011

In spite of general electricity market trends, prices for ancillary services have continuously increased in the Hungarian electricity sector. End consumers today are charged nearly 2 HUF for ancillary services by each unit of kWh consumed, totalling 67.5 billion HUF in 2010. In the first part of our article, we briefly summarize the volume, structure and total cost changes of operating reserves procured by MAVIR. The second part analyzes whether the increasing cost of reserves can be attributed to the pricing behaviour of some major generation companies.