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Why is the domestic electricity market expensive?The reasons behind the different domestic and German electricity pricesPublished: 1 of September, 2014

The electricity prices that have characterised the domestic wholesale market since the start of the deregulation surpass the price level of the neighbouring - Slovakian and Czech - markets and the German wholesale prices that are used for reference. The difference in 2007 reached 14 €/MWh, then it disappeared in the first few years of the economic downturn, and in the last two years it fluctuated between 3 and 10 €/MWh. In our analysis, we are looking for an explanation for the difference between the day-ahead hourly electricity prices – from now on referred to as spread – on the Hungarian (HUPX) and the German (EEX) power exchanges.