€

HUPX Day-Ahead Market Delivery date: 21/07/2010-31/12/2010

HUPX Annual report (20 July – 31 December 2010)

Since the successful beginning of HUPX Day-Ahead Market the monthly increase of the daily volume was 515,75 MWh on average, and in December the average traded volume reached 3 655 MWh. The total traded volume from the launch (20th July) was 418 293 MWh, which corresponds to approximately 2,5 % of the total Hungarian gross electricity usage of the given period and 3,2% in December.

The Hungarian power exchange provided transparency and brought the domestic prices closer to the regional prices. The difference between HUPX prices compared to neighbouring exchanges and the OTC market is decreasing, thanks to the activity of cross-border trading.

By the end of the year the number of HUPX Members reached 22. Majority of the market players currently active on the Hungarian and regional electricity market are already well represented among the HUPX members. Besides the German, Czech, English, Danish, Serbian, Romanian, Slovenian and naturally Hungarian members already presented on the HUPX market, there are prospective British, Hungarian, Italian and German participants.

page 1

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

I.

Membership

List of the Members

.

Members   Alpiq Energy SE   CEZ, a.s.   Danske Commodities A/S   E.ON Energy Trading SE   EDF DÉMÁSZ Zrt.   Energy Financing Team (Switzerland) AG   GDF SUEZ Energia Magyaroszág Zrt.   GEN-I d.o.o.   Holding Slovenske Elektrarne d.o.o.   JAS Budapest Zrt.   Magyar Áramszolgáltató Kft.   Mátrai Erőmű Zrt.   MVM Partner Zrt.   Statkraft Markets GmbH

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  EDF Trading Limited  Ezpada s.r.o.   Gazprom Marketing & Trading Ltd   MAVIR Zrt.   Mercuria Enegy Trading S.A   ÓAM Ózdi Acélművek Kft.   Repower Trading Ceska republika s.r.o   S.C. Tinmar S.A

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Growth in the number of members

Number of Admitted Members 23

21 19

HUPX launched the Day-Ahead Market with 10 members in 21st of July 2010. Thanks to successful start and the improving liquidity more and more company applied for admission to the HUPX DayAhead Market. The average accession was 2 admitted members per month, which resulted in 22 participants on the HUPX Day-Ahead Market by the end of the year. The distribution between the admitted members represents a wide range of nationalities next to the 36,36 % part of Hungarian companies.

17 15 13 11 9

page 3

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

II.

HUPX Day-Ahead Market results

Description

2010

Description

2010

HUPX Base Average Price (EUR/MWh)*

53,20

Total Volume (MWh)

HUPX Peak Average Price (EUR/MWh)*

68,33

Average Daily Traded Volume (MWh)

2 550,6

HUPX Base Trimmed Mean Price (EUR/MWh)**

46,66

Highest Daily Traded Volume (MWh)

6 541,1

HUPX Peak Trimmed Mean Price (EUR/MWh)**

55,04

Lowest Daily Traded Volume(MWh)

231,0

OTC Base Trimmed Mean Price (EUR/MWh)**

46,70

Highest Hourly Traded Volume (MWh)

469,0

OTC Peak Trimmed Mean Price (EUR/MWh)** Diff. BL. HUPX↔OTC

59,47

Lowest Hourly Traded Volume(MWh)

Diff. PL.

HUPX↔OTC

0,16

418 293,2

Average Hourly Traded Volume (MWh)

2 999,26

Lowest Traded Price (EUR/MWh)

0,01

DAM - Weekdays

01-24 (Baseload)

Average Daily Traded Volume (MWh) DAM - Weekend

Average Daily Turnover (EUR)

106,2

1,15

Highest Traded Price (EUR/MWh)

Total Turnover (EUR)

0,0

22 336 507,45

2 743,4 01-24 (Baseload)

Average Daily Traded Volume (MWh)

2 056,0

136 198,22

Max. Daily Turnover (EUR)

2 671 657,01

Min. Daily Turnover (EUR)

8 785,73

DAM - Weekdays

09-20 (Peakload)

Average Daily Traded Volume (MWh) DAM - Weekend

1 460,1 09-20 (Peakload)

Average Daily Traded Volume (MWh)

1 017,9

Note: *The average price contains all the hourly prices in the examined periods. **Trimmed Mean is a special average which shows monthly mean prices considering all prices except for the two lowest and the two highest. We applied this indicator to avoid from distortion of the results. Mean is very sensitive to extreme values.

page 4

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Performance of HUPX DAM from launch (Delivery Day: 21.07.2010-31.12.2010)

HUPX's prices and volumes 7 000

100

90 6 000 80 5 000

70

MWh

50

3 000

40 30

2 000

20 1 000 10 0

0

DATE

INDEX VOLUME

page 5

INDEX PRICE

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

EUR/MWh

60

4 000

Analysis of Prices HUPX prices are compared to relevant neighbouring exchanges’ prices

HUPX vs. Neighbouring Exchanges (BASE Prices) 80

70

EUR/MWh

60

50

40

30

20

10 2010.07.21

2010.08.04

2010.08.18

2010.09.01

2010.09.15

HUPX

page 6

2010.09.29

2010.10.13

Germany/Austria EPEXSPOT

EXAA

For information purposes only HUPX Day-Ahead Market

2010.10.27

OPCOM

2010.11.10

2010.11.24

2010.12.08

2010.12.22

ISOT

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Spread between HUPX and relevant power exchanges Hourly spread – 21st July – 31st December Hourly spread - HUPX to EPEX DE/AT (21/07-31/12)

Hourly spread - HUPX to EXAA (21/07-31/12)

4,00

4,00

2,00

2,00

0,00

0,00 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

17

18

19

20

21

22

23

24

EUR

-2,00

EUR

-2,00

-4,00

-4,00

-6,00

-6,00

-8,00

-8,00

-10,00

-10,00

Hours

Hours

Hourly spread - HUPX to OPCOM* (21/07-31/12)

Hourly spread - HUPX to ISOT (21/07-31/12)

16,00

3,00

14,00

2,00

12,00

1,00

10,00

0,00

8,00

-1,00

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

EUR

EUR

1

6,00

-2,00

4,00

-3,00

2,00

-4,00

0,00

-5,00 1

-2,00

2

3

4

5

6

7

8

9

10

11

12

13

14

Hours

15

16

17

18

19

20

21

22

23

24 -6,00

Hours

*Export and import fees are not included.

page 7

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Hourly trimmed mean prices on HUPX (Delivery Day: 21.07.2010-31.12.2010)

Hourly trimmed mean prices on HUPX 65 59,45

58,29

60 55,32

56,19

59,70

57,17 56,43

53,72

55

56,18

51,52 51,27

EUR

50

48,67

50,77

49,62

48,99 47,65

45 41,54

40 35

40,05

AVG Trimmed

34,28 32,57

29,11

30

27,42

25

26,81

25,50

20 H1

H2

H3

H4

H5

H6

H7

H8

H9 H10 H11 H12 H13 H14 H15 H16 H17 H18 H19 H20 H21 H22 H23 H24

Hours

page 8

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Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Analysis of Volumes Increase of total traded volumes on HUPX DAM month by month

Monthly Volumes 140 000

113 297,1

120 000

91 401,9

100 000

MWh

Monthly volumes Increase MWh July* 11 281,6 August 49 341,8 38 060,2 September 69 637,8 20 296,0 October 83 333,0 13 695,2 November 91 401,9 8 068,9 December 113 297,1 21 895,2 Average 69 715,5 20 403,1

83 333,0 69 637,8

80 000

49 341,8

60 000

40 000 20 000

11 281,6

0 July*

August

337 %

September

41 %

October

19 %

November

9%

December

24 %

*HUPX DAM was launched on 20th July 2010.

page 9

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Increase of total average daily traded volumes on HUPX DAM month by month

July August September October November December Average

MWh 1 025,6 1 591,7 2 321,3 2 688,2 3 046,7 3 654,7 2 388,0

Average Daily Volumes

Increase 4 000

566,1 729,6 366,9 358,5 608 525,8

3 654,7

3 500

3 046,7 3 000

2 688,2 2 321,3

2 500

MWh

Average daily volumes

2 000

1 591,7 1 500

1 025,6 1 000 500 0

July

August

55 %

page 10

September

46 %

For information purposes only HUPX Day-Ahead Market

October

16 %

November

13 %

December

20 %

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Hourly total volumes on HUPX (Delivery Day: 21.07.2010-31.12.2010)

HUPX hourly total volumes 25 000

20 000

MWh

15 000

10 000

5 000

0

H1

H2

H3

H4

H5

H6

H7

H8

H9

H10

H11

H12

H13

H14

H15

H16

H17

H18

H19

H20

H21

H22

H23

H24

AGR 16 169 15 875 15 956 16 437 16 717 17 725 17 690 16 618 15 556 14 889 16 871 18 880 20 163 18 574 19 411 19 582 20 536 18 531 17 820 18 352 17 029 16 240 16 332 16 275

page 11

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Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Hourly average volumes on HUPX (Delivery Day: 21.07.2010-31.12.2010)

HUPX hourly average volumes 140,0

120,0

100,0

MWh

80,0

60,0

40,0

20,0

0,0

AVG

page 12

H1

H2

H3

H4

H5

H6

H7

H8

H9

H10

H11

H12

H13

H14

H15

H16

H17

H18

H19

H20

H21

H22

H23

H24

98,6

96,8

97,3

100,2

101,9

108,1

107,9

101,3

94,9

90,8

102,9

115,1

123,0

113,3

118,4

119,4

125,2

113,0

108,7

111,9

103,8

99,0

99,6

99,2

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045

Volumes in single hours (MW) 60%

50%

40%

30%

20%

10%

0%

0-50

50-100

100-150

150-200

200-250

250+

July

38,39%

51,97%

9,65%

0,00%

0,00%

0,00%

August

22,39%

32,93%

17,06%

9,76%

10,31%

7,55%

September

8,29%

19,52%

23,26%

23,94%

18,20%

6,79%

October

6,55%

20,08%

20,56%

19,25%

16,76%

16,79%

November

3,41%

17,05%

23,56%

27,35%

16,38%

12,25%

December

0,30%

12,55%

27,67%

22,69%

14,39%

22,40%

Note: The bar chart shows the traded volumes in single hours in the examined period. (21.07.2010.-31.12.2010.) We categorized the results according to the traded volume of each hour. The distribution between the categories moved to the direction of higher volumes. This trend was already shown by the last monthly results. The monthly reports and this yearly chart shows an increasing liquidity on the HUPX Day-Ahead Market due to the higher traded volumes in each hour. We expect that this trend will continue, which based on the thriving number of admitted members. page 13

For information purposes only HUPX Day-Ahead Market

Delivery date: 21/07/2010-31/12/2010 HUPX-PEL-2011-0045