MVM Partner, subsidiary of Hungary’s dominant state-owned electricity trader MVM Group transferred its electricity business in the competitive retail market to the national utility company, NKM Energia Zrt.
“Once the process is completed NKM Energia will provide for more than 45 per cent of the country’s energy consumption,” reads the company announcement.
This step is part of MVM Group’s long-term strategy to eliminate duplications between member companies’ portfolios and activities. Last year, following the capital increase of 13.4 billion forints (36.9 million euros) MVM Zrt became the sole owner of NKM. The restructuring helps the optimal operation of the strategic activity areas of the nationally-owned MVM Group whose portfolio covers the total domestic energy system in Hungary.
MVM Partner becomes this way the sole electricity wholesaler of the national energy holding, while NKM Energia will operate as the electricity and natural gas retailer of more than 55,000 business customers on the competitive market, and the universal supplier of 4.2 million residential and small business customers at the same time.
“Upon the completion of the process, NKM will become Hungary’s largest supplier of energy for end-users, selling more than 62 terawatt hour (TWh) of electricity to its costumers on a competitive and universal basis,” said Gábor Hiezl, CEO of NKM Energia.
Balázs Tomaj, Deputy CEO of MVM Partner highlighted that the reorganisation of MVM’s entire retail business of electricity and natural gas into NKM Energia will further improve the quality of retail services and create a higher customer experience. The process was supervised by the Hungarian Energy and Public Utility Regulatory Authority and it will require no action from the part of MVM Partner’s retail customers.