Tuesday, November 25, 2008

Revenge in the electricity market

I like this story, Ukrenergy wants to get access to the EU through Hungary, but a few weeks ago, they limited how much the Hungarian company System Consulting, could import from the Ukraine on the cross-border capacities to 5 mw, down from 345 mw. Ukrenergy wants to import 450 mw into Hungary from the Ukraine, but MAVIR is only allowing 105 mw. I really like the '105 mw' that magic '5' on the number should really send a message.

Ukrenergy Trade Wants More EU Presence
Publication: Hungary Around the Clock
Provider: Access-Hungary Kft.

November 24, 2008 (09:00)
Ukrainian state-owned energy trading company Ukrenergy Trade (the former Energy trade capital), in which Vasyl Bechvarzh now only has a minority stake, held a presentation at the Corinthia Grand Hotel Royal in Budapest at the weekend. As Ukrenergy trade wanted to import 450MW electricity to Hungary this year but Mavir allowed only 105MW, Ukrenergy trade has now turned to the EU court, Bechvarzh said.

You know usually I believe in free trade, but if one company - and country wants to play dirty, then I really don't have a problem in this case if Mavir limits their capacity. Particularly if it ends in '5' mw. Besides it remains to be seen if the EU courts can do anything over this as the border with the Ukraine is not an EU border therefore Hungary and MAVIR have control over it.