Hungarian spot electricity prices fell at the end of last year thanks to falling gas prices and low demand, as a result of above-average temperatures in the country in December.
The day-ahead baseload price on the HUPX stock market during the working week fell from over 400 euros per MWh in mid-December to a 19-month low of 52 euros per MWh in the last week of 2022, data from the exchange operator shows. Prices rose slightly to €145 per MWh on average in the first week of 2023, but are still at their lowest level in a year.
The drop in prices is influenced by the drop in gas prices and low demand for electricity, due to record high temperatures in late December and early January.
Electricity consumption in Hungary in the second half of 2022 fell by 5% compared to the previous year, after the government reduced electricity subsidies for households in August. The increase in solar energy production contributed to the increase in the amount of available electricity.
The net import of electricity was reduced at the end of 2022. However, imports from Slovakia reached a record high level as transit needs in the Balkans were almost double the seasonal norm.
Futures prices also fell significantly after month-ahead contracts reached levels above €400 per MWh in December. The price for February at the end of the first week in January was 194 euros per MWh, and the futures price for the second quarter was 188 euros per MWh. One-year forward contracts also fell, to €205 per MWh.