EU to scan MVM contracts
Friday, November 11, 2005, 09:05
The European Committee (EC) is to revise the long-term contracts of the Hungarian Electricity Works (MVM) Rt, because they may be used to restrict competition. These contracts guarantee that company investments are to be refunded along with a certain amount of profit. Such long-term contracts were signed in the 90's and do not expire until 2010-2020. The reason the EC is investigating is that the agreements, which cover about 80% of the market, leave little room for new companies wishing enter the market, thus contradicting the EU directive on the energy market liberalization. (NG 4, MH 10) E.C.