Now and then: why Hungarian wholesale electricity is still more expensive than the German
Now and then: why Hungarian wholesale electricity is still more expensive than the German

Summary/Abstract: This article investigates possible explanations for the price difference between the Hungarian and German day-ahead wholesale electricity markets. It compares findings from a previous analysis on the 2011–2013 period (around the time when Hungary joined the CZ–SK market coupling) with those for January 2017, when unprecedented price spikes occurred in the region. It looks at the similarities and differences in past and present market behavior, analyzing the effect of different variables on the Hungarian market and the price difference between the two markets. The January analysis uses different methodologies from the previous study, which examined three years of available data, as the exceptionally high electricity prices lasted only for a few days in January.

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