PM denies political motivations behind MVM changes

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Hungarian Prime Minister Ferenc Gyurcsány denied that changes to the structure and the management of state-owned electricity wholesaler MVM are politically motivated.

The government announced a week earlier that MVM CEO István Kocsis would be sacked and changes to the company's structure made in order to eliminate the company's monopoly.

Gyurcsány dismissed speculation that the changes were politically motivated. Rather they were based on studies by the Hungarian energy office (MEH), the competition office (GVH) and the national bank of Hungary (MNB) that showed MVM's monopoly is keeping electricity prices artificially high, he said.

Industry insiders have said the full deregulation of Hungary's electricity market from the start of 2008 was chaotic and prices actually increased because of the lack of appropriately prepared regulations.

On Wednesday, Finance Minister János Veres said the aims of the restructuring as well as other planned changes to electricity market regulations were intended to ensure that electricity prices do not create inflationary pressure in 2008 or the years to follow. (MTI-Econews)

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