Főgáz prepares to take over Tigáz clients

Competition

State-owned Főgáz stands ready to take over some 1.2 million clients of regional gas distributor Tigáz, the company told state news agency MTI yesterday. 

The company made the statement after the Hungarian Energy and Utilities Regulatory Office (MEKH) called a tender for the clientsʼ takeover. Tigáz requested the withdrawal of its "universal service provider" license to supply gas to households, two weeks earlier.

Tigáz said the step was taken to "coordinate its business activity with the regulatory environment and reduce the unfavorable effects on its business activity". Tigáz had an operating loss of HUF 4.9 bln last year. Főgáz also recently won the right to take over the retail customers of the local gas units of Germanyʼs E.ON and Franceʼs GDF Suez, after they turned in their licenses. Főgáz is the bridgehead onto the gas market of the First National Utilities Company (ENKSZ), which was recently established by the state to act as an efficient, predictable and cheap utilities provider.

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