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Hungary and Ukraine discussed cross-border electricity trade

The Hungarian Energy and Public Utilities Authority (HEA) and the Ukrainian National Energy and Utilities Regulatory Commission (NEURC) discussed the regulatory preconditions for electricity trading on the Hungarian-Ukrainian border and the harmonisation of the necessary rules.

“We must strive to bring the rules on the allocation of cross-border capacities as close as possible to the rules already introduced and successfully implemented at our EU borders,” said Pál Ságvári, Vice-President of the Hungarian regulator.

On 16 March the electricity grids of Ukraine and Moldova have been successfully synchronised with the Continental European Grid, which also includes Hungary.

Currently, there is no trade flow between the two countries, despite significant electricity imports from Ukraine to Hungary in previous years.

The parties discussed the capacity allocation procedure, the approval of related methodologies and joint coordination agreeing that they will strive to transplant the regulations already introduced and successfully implemented at the EU borders, including guidelines on forward capacity allocation and the Harmonised Allocation Rules (HAR) for long-term transmission rights.

The Hungarian regulator welcomed the cooperation with its Ukrainian counterpart and expressed its support for convening an even wider, regional consultation, with the involvement and coordination of the Energy Community Secretariat.

“Capacity allocation procedures shall allow market participants to compete for cross-border transmission capacity rights under clear and transparent conditions and with the least administrative burden,” says the press release of HEA.

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