Bill would smooth transfer of clients between retail electricity distributors

Competition

Hungaryʼs government submitted a bill to lawmakers on Monday that is designed to ensure uninterrupted service to the customers of electricity distributors who choose to leave the retail market. 

The bill clarifies and details the process of transferring such customers from one service provider to another. Hungaryʼs state-owned utilities company ENKSZ will soon take over the retail customers of electricity distributor Elmű and its sister company Émász under an agreement signed between the government and German owner RWE in the spring.

ENKSZ is in talks with another market player, as well, state secretary Zsuzsa Németh said last week. In addition to Elmű and Émász, the only other "universal service providers" – companies that provide households with electricity using a price structure and level controlled by the state – in Hungary are French-owned EDF Démász and German-owned E.ON.

ENKSZ launched services on the gas market last May, using Főgáz, also a former unit of RWE, as a bridgehead.

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