Hungary Paid Ft 600bn Too Much For E.ON
- 14 Aug 2014 9:00 AM
The government may have paid Ft 600 billion more than market value for the Hungarian operations of German energy giant E.ON last year, according to background studies obtained by website Átlátszó via a court order from the Kúria.
The package was estimated to be a negative net value of Ft 355 billion, but the government paid Ft 261 billion through state energy company MVM.
The background documents put a negative price tag on the E.ON companies, due to the take-or-pay pricing of imported gas, meaning that a predetermined amount has to be purchased from Russia’s Gazprom.
One document warned that the price could not be justified as a market price and that the EU might therefore investigate the transaction as a hidden state subsidy.
Source: Hungary Around the Clock
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