The MVM Group has a multitude of wide-ranging responsibilities
MVM is a successful, vertically integrated, nationally-owned energy group with a portfolio that covers the total domestic energy system. Besides its significant market position in Hungary MVM intends to increase its presence in the regional markets.
The MVM Group has been operating as a Recognised Corporate Group since June 1, 2007. In this legal framework, MVM Ltd., the parent company coordinates the business activities of almost all of its subsidiaries in the Group in a unified, effective management system. The Hungarian transmission system operator company MAVIR Ltd., although a member of the Group in terms of ownership, is placed outside the Recognised Corporate Group due to its special status and the EU directives.
The group has a presence in the telecommunication sector and MVM is taking a key role in the natural gas market, and is now present in all key areas of the business, from infrastructure through trading to providing universal service.
The operation of the MVM Group as a strategic holding ensures that group-level optimum is given priority in the activities of the individual member companies despite the full legal independence of the licence-holding companies. The holding system allows the use of the synergy potentials existing within the Group, the improved efficiency of resource utilisation, and, as a result of all these, the improvement of profitability, as well as the increase of the market and ownership values of the Group. At the same time, as a nationally owned Group, MVM has an important role to support the energy policy objectives of the Hungarian government.
The main responsibilities of the MVM Group:
The MVM Group is the dominant electricity wholesale trader in Hungary, and it also holds considerable interests in the retail market (MVM Partner Zrt.). Relying on its international connections and professional excellence, MVM promotes the integration of the national electricity markets of the region, with special regard to the domestic interests.
As a power generator company operating the Paks Nuclear Power Plant, the MVM Group also plays a decisive role in the Hungarian market. While expanding its production portfolio, the Group gives emphasis to the commercial considerations, but at the same time, however, it strictly observes the demands of power system balancing and the security of supply.
The MVM Group is also active in the district heating market of different Hungarian regions, where it uses modern technologies to provide favourably priced and environment-friendly district heating to the customers in Tatabánya, Miskolc and North Buda.
Transmission System Operator (ITO)
The transmission grid in Hungary is owned by MAVIR Ltd., a subsidiary of the MVM Group. According to the Third Energy Package of the European Union, MAVIR Ltd. operates as an Independent Transmission Operator. The ITO model aims to ensure that the rules for the ownership unbundling are observed in conformity with the EU Directive. The national legal framework was approved by the Hungarian Parliament in an amendment of the relevant Act in 2009. The integrated structure of the Group, however, creates a special dual position for the system operator: on the one hand, the operational model guarantees the independence of its activities, but due to its membership in the Group it can also enjoy the benefits of the integrated operation.
The MAVIR Transmission System Operator Company is responsible for the management, operation, modernisation and necessary enlargement of the high-voltage transmission grid. It is a primary consideration for the company that market players should have access to the transmission grid under equal conditions. Other member companies of the MVM Group are also involved in the transmission operation: such activities are the implementation of network development projects (OVIT Ltd.) and the associated engineering services (MVM ERBE ENERGETIKA Mérnökiroda Zrt.). Since July 1, 2010, MAVIR has also been operating the HUPX Hungarian Power Exchange.
Gas Trader and Storage
Since 2013 Hungarian Natural Gas Trade Ltd. and Hungarian Natural Gas Storage Ltd. within MVM Group and under full national ownership have secured natural gas supplies for Hungary.
Hungarian Natural Gas Trade Ltd. is the biggest natural gas trader in Hungary. The company is the most significant partner of the Hungarian gas distribution companies in supplying household customers. Besides that, Hungarian Natural Gas Trade Ltd. also plays an increasingly significant role in the liberalised natural gas market. Hungarian Natural Gas Storage Ltd. operates four underground storage facilities. Besides securing sufficient gas supply for the daily peak demand in winter the company aims to contribute to the increasing importance of the country within the Central European region.
Participation in the Electricity Market of the Region
It is the strategic objective of the MVM Group to be present as an investor and project company not only in Hungary, but also in the electricity markets of other countries of the Central and East European region. The primary aim of the international investments is to strengthen the market position of MVM and to increase its shareholders value, with special regard to the requirements of the power system balancing and the security of supply.
Supporting State Responsibilities
As the integrated national power company of Hungary, the MVM Group is present in every segment of the entire electricity industry, thus it can provide significant support to the State in its energy policy efforts. Due to its market position and using market instruments, MVM contributes actively — in accordance with the current legal framework and the independence of the licence-holding companies — to the long-term national energy policy objectives, like guaranteeing the security of supply, and backing the State responsibilities in keeping electricity prices at a favourable level, in the interest of all electricity consumers in Hungary.
Participation in guaranteeing Hungarian and regional energy security:
Hungarian Gas Transit Ltd., a member of MVM Group is overseeing the construction of the Hungarian segment for the Hungary-Slovakia Gas Interconnector, a pipeline that will increase regional energy security by diversifying transit routes. Financed in part by the European Union, the project will be a key element in the north-south integration of Central European markets.
Contribution to the implementation of state policies
As a nationally owned, vertically integrated energy group, which is also a key player in the region, the MVM Group regards it as its mission to implement the energy policy objectives in alignment with the National Energy Strategy and other economic policy objectives, with special regard to maintaining the stability and capacity of the domestic energy system. With this, the MVM Group aims to increase the security of supply and to reduce energy dependence, to augment nationally-owned assets in the energy sector, to develop energy generation and supply in a sustainable way, and to continue growing while maintaining its creditworthiness.
Contribution to stable energy supply in the regional and Hungary
In March 2014 Viktor Orbán, Prime Minister of Hungary, and Robert Fico, Prime Minister of the Repulic of Slovakia inaugurated the natural gas interconnection pipeline between Hungary and Slovakia, which forms an important part of the first North–South Gas Corridor in Central Europe. the company is responsible for operating the Hungarian section of the natural gas interconnection pipeline.
Hungarian Gas Transit Ltd., member of MVM Group has been responsible for constructing and operating the Hungarian section of the natural gas interconnection pipeline, which increases the energy security of Hungary and the Central European region. The project greatly contributes to the strengthening of the regional transit role of Hungary as well as to the more efficient utilisation of domestic gas storage facilities.
Building on its existing assets, a secure, high-speed national telecommunications network, MVM Group member MVM NET Ltd. has been operating the Electronic Government Backbone network since late 2011. This core network supports the daily operation of government and municipal organizations around the country. The company is planning to sell free capacity on the open market in the medium term.