E.ON Hungary unit returning retail gas supply licence

Competition

The Hungarian unit of German utilities giant E.ON on Friday said it is bringing back its "universal service provider" license to supply gas to households. Universal service providers supply gas using a price structure and level controlled by the state. E.ON Energiaszolgáltató said it had asked the Hungarian Energy and Utilities Regulatory Office (MEKH) to withdraw the license.

The measure is part of a strategic portfolio restructuring begun last year that serves the companyʼs sustainable operation, and the quality and security of its service, it added. The unit noted that, under the circumstances, MEKH has a mandate to invite offers from other service providers to take over E.ONʼs clients or assign a new provider if no offers are made.

The quality of service will not be affected during the transfer process, it added. Hungaryʼs government earlier mandated a series of utilities price cuts for households. It also established the First National Utilities Company (ENKSZ) to act as an efficient, predictable and cheap utilities provider. ENKSZ began operating on the gas market this month and will later launch on the electricity and district heating markets.

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