The privatization of the Hungarian public utilities shall begin with the privatization of the energy industry in September. The privatization of the power stations and electric energy suppliers shall be concluded in two stages. In 1995 the SPHC shall sell the 47,8% of the shares of six electric energy supplier companies and 34-49% of the shares of seven power stations. In addition to this the SPHC intends to sell 24% of the shares of the Magyar Villamosipari Movek Rt., the mother company who owns the power plants, energy suppliers. In the second stage of the privatization until December 31, 1997 the actual purchaser may exercise the option granted to him by the SPHC: to buy 25%+1 of the shares of the company in the later stage of privatization. In the first two cases the foreign investors may obtain a majority share in the companies operating power stations and electricity supplying plants. The majority stake in the Magyar Villamossagi Movek Rt. remains, however, in state ownership. There are approximately 120 companies who have already registered themselves by the SPHC as potential investors. The deadline for the offers is November 1995. The SPHC intends to enter into the first transfer agreements in December this year. The purchase price to be paid for the shares shall be divided among the local authorities and the Government, but it belongs, however, not to the competence of the SPHC to examine how the these persons make use of these amounts.

According to expert opinion approx. power stations with a capacity of 2000 MW have to stop their activity. New power station with a capacity of approx. 4000 MW have to be built in the next years. These investment may not be made without foreign capital. The purchasers of the shares have to fulfil obligations regarding share capital increase and reconstruction of the plants.

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