Being among the top 3 integrated gas and electricity traders and striving for a leading role in customer satisfaction: these are the ambitions of E2 Hungary, a joint company of MET and Magyar Telekom launched in January 2016.
The 50-50 joint venture utility company supplies natural gas and electricity to more than 4,000 business customers on the Hungarian market. Such a portfolio already puts E2 Hungary among the five most dominant players in the power and gas market, but ambitions do not stop there. The company’s one-year plan is to record a positive year and, looking further ahead, to reach a 10% growth in the next three years, both in gas and power trade – thus arriving to the top 3 position.
The partnership is based on a strategic agreement between Magyar Telekom and MOL (which owns 40% of MET), signed in 2013. However, E2 Hungary is a company with its own business objectives and sales strategy, it operates independently from its parent companies.
But what is the idea behind the joint venture? MET contributes its energy business expertise, Telekom its experiences in customer service to the high-quality services provided by E2 Hungary. As a result, clients benefit from the company’s efficiency and from its flexible, customizable offers.
Even if E2 Hungary is an autonomous business unit, it is proud of its origins and would like to build on the values represented by the parent companies. MET Group is a leading European energy trader established in Hungary in 2007, currently active in ten countries through subsidiaries. MET is trading in the gas markets of 19 countries, listed in the top 3 traders in Austria’s VTP gas exchange, the biggest gas exchange in Central Europe.
Magyar Telekom is the number one telecom company in Hungary, providing a full range of telecommunications and infocommunications services. It is majority owned by Deutsche Telekom AG.
E2 Hungary’s plan is to be profitable in the very first year of its existence. The secret lies in customer satisfaction. In practice, this means a live, direct relation with customers who all have their own, dedicated contact person at E2 Hungary.
If the company understands what clients want, it is able to provide tailor-made professional services, customized to the specific needs of its partners. E2 Hungary puts a special emphasis on product innovation, breaking away from fixed price energy products and focusing on specific solutions. New value-added services may also be introduced in the future.
As both parent companies – MET Group and Deutsche Telekom – have a strong international presence, E2 Hungary considers expanding its operations to other Central and Eastern European countries over the medium term. For the time being, the new energy trader deals only with business customers, but it does not exclude turning to the domestic market one day – if it proves to be a rational, economically justified decision.
The establishment of E2 Hungary has changed the operations of the two owners as well. Magyar Telekom has transferred its complete industrial utility business into the new company, which will also supply most of MET’s current commercial clients.
Since MET has kept its largest customers from energy-intensive industries and from the energy wholesale market, it may now serve them even more efficiently. The cooperation with large industrial clients is based on complex, tailor-made products. MET’s comprehensive knowledge of the energy industry has always played a key role, and this expertise contributes to E2 Hungary’s success too.