Are you sure?

Electricity firms announce EGMs

Budapest electricity firm Elmű Nyrt and its regional peer Émász Nyrt, both owned by German power giant RWE, will convene separate EGMs on September 28 to seek shareholder backing for a management decision to spin off both companies' distribution activities into separate units, the companies said in a stock exchange statement on Wednesday. The planned move is in line with an EU regulation that requires electricity companies to establish independent companies for network operation and for distribution with the aim of making access to power networks more transparent. The managements will propose to transfer the distributor activities of the two companies to Elmű DSO (Distribution System Operator) and Émász DSO. Network operation of both companies will be merge into a single firm, Elmű-Émász Hálózati Szolgáltató és Szerelő, while customer relations are expected to be managed by Elmű-Émász Ügyfélszolgálati. The separation will require the approval of the Hungarian Energy Office (MEH) and the state, which holds a golden share in both companies. (Mti-Eco)