BUDAPEST (Dow Jones)--The Hungarian power exchange could start operations in July 2010 after Hungarian electricity grid operator Mavir Zrt. and EPEX Spot SE., one of Europe's largest exchange service providers, signed a letter of intent to cooperate, the two parties said Thursday.
Under the cooperation plans, EPEX Spot will supply the trading system for transactions to be executed on the Hungarian Power Exchange, also know as HUPX. Clearing will be provided by EPEX Spot's clearing house, European Commodity Clearing AG, the parties said in a statement.
"HUPX may become a key factor in power market harmonization, and one of the most important players in the [Central and Eastern European] region," EPEX Spot President Jean-Francois Conil-Lacoste was quoted as saying in the statement.
The launch of the exchange will make the market more transparent, providing reference prices, offering liquidity at relatively low transaction prices, Mavir said.
"The official launch of HUPX is expected in July 2010, pending legal and administrative permissions," Mavir said.
"We're taking yet another step toward establishing a unified market and adopting European technologies," Mavir Chief Executive Officer Gabor Tari said. "We're hoping that HUPX will help prices become transparent," he added.
Mavir is owned by state-owned power wholesaler MVM Zrt.
Mavir will finance the creation of the exchange from its own resources.
MVM said that EPEX Spot made the most financially attractive offer for the platform