Főgáz submits offer to take over Tigáz clients

Energy Trade

State-owned Főgáz has submitted an offer to take over the retail clients of regional gas distributor Tigáz, the Hungarian Energy and Utilities Regulatory Office (MEKH) told Hungarian news agency MTI yesterday.

Főgáz submitted the offer by the deadline, and MEKH now has five working days to evaluate it.

Főgáz said earlier it was prepared to take over Tigázʼs 1.2 million clients, after the company requested the withdrawal of its "universal service provider" license to supply gas to households. Tigáz said it took the step 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), recently established by the state to act as an efficient, predictable and cheap utilities provider.

ENKSZ chief executive Péter Horváth said in a statement yesterday that if MEKH transfers the Tigáz clients to Főgáz, Főgáz will become the sole universal service provider of gas in Hungary, raising the number of households its serves to 3.3 million.

Universal service providers supply gas using a price structure and level controlled by the state.

ADVERTISEMENT

Consumer price levels below EU avg in 2020 Analysis

Consumer price levels below EU avg in 2020

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Breast cancer screening at Dr. Rose Private Hospital Interview

Breast cancer screening at Dr. Rose Private Hospital

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.