On September 11, 2012 the Czech, Slovak and Hungarian electricity markets were successfully interconnected based on the principle of implicit allocation of cross-border capacities. This method allows simultaneous trading on energy exchanges in all three countries; up to the amount of available transmission capacity. One of the main benefits of interconnected markets resulting from the implicit auction is efficient allocation of available cross-border capacities. Better use of cross-boarder capacity and facilitation of cross-border trading provide participants an opportunity to create optimal portfolio. Amount of electricity traded on these interconnected markets will contribute to greater security of supply, greater market liquidity and lower price volatility. Daily trading results will be published regularly on the websites of respective energy exchanges.
Market operators (OTE, OKTE and HUPX) and transmission systems operators (ČEPS, SEPS and MAVIR) worked together with the support of the relevant ministries and the National Regulatory Authorities (ERU, URSO and MEH) on the project, which began on the May 30, 2011 by the Memorandum of Understanding signed by the participating parties. Implicit auction mentioned above uses daily market evaluation mechanism, which is consistent with the algorithm used in the CWE region. The next step of the participating parties will be focused on cooperation on the implementation of implicit auctions based on flow-based method of interconnected CEE and NWE regions, which represents the next step towards a single European electricity market.
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