MVM GROUP | ANNUAL REPORT | 2013
1
MVM GROUP ANNUAL REPORT 2013
TABLE OF CONTENTS
1.
STRUCTURE OF THE MVM GROUP4
1.1. 2.
MAIN FINANCIAL INDICATORS OF THE MVM GROUP
7
2.1. Key Technical and Economic Indicators of the MVM Group
8
2.2. Key Financial Data of Subsidiaries
9
3.
STRATEGY14
4.
AREAS OF ACTIVITIES OF THE MVM GROUP
4.1.
Trade and Supply Chain Management (SCM)
17
4.1.1. MVM Partner Ltd.
17
4.1.2. MVM-ADWEST Marketing GmbH
20
4.1.3. Hungarian Gas Trade Ltd.
20
4.1.4. POWERFORUM Ltd.
4.2. Power and Heat Generation and Technical Services
21
4.2.1. Generation
21
4.2.1.1. MVM Paks Nuclear Power Plant Ltd.
22
4.2.1.2. MVM Paks II Nuclear Power Plant Development Ltd.
24
4.2.1.3. Vértes Power Plant Ltd.
25
4.2.1.4. MVM MIFŰ Ltd.
26
4.2.1.5. MVM North Buda Power Plant Ltd.
26
4.2.1.6. MVM BVMT Co. Ltd.
27
4.2.1.7. MVM GTER Gas Turbine Power Plant Ltd.
27
4.2.1.8. MVM Hungarowind Ltd.
28
4.2.1.9. Bánhida Power Plant Ltd.
28
Technical Services
28
4.2.2.1. MVM OVIT National Power Line Company Ltd.
28
4.2.2.2. MVM ERBE Power Engineering and Consulting Ltd.
29
4.2.2.3. ATOMIX Trading and Service Ltd.
29
4.2.2.4. ENERGO-MERKUR Electricity Trading and Service Ltd.
29
Telecommunications and IT Services
29
4.2.3.1. MVM NET Telecommunications Provider Ltd.
29
4.2.3.2. MVMI Information Technologies Service Centre Ltd.
30
Structure of the Group, Activities of the Companies
5
16
TABLE OF CONTENTS
21
2
4.2.3. MVM GROUP ANNUAL REPORT 2013
4.2.2.
4.3. Transmission, System Operation, Natural Gas Storage and Energy Exchange Operation
30
4.3.1. MAVIR Ltd.
30
4.3.2.
Central Smart Grid Operator Ltd.
33
4.3.3. Hungarian Gas Transit Ltd.
33
4.3.4. Hungarian Gas Storage Ltd.
34
4.3.5. HUPX Hungarian Power Exchange Company Ltd.
35
4.3.5.1. CEEGEX Central Eastern European Gas Exchange Ltd.
35
4.4. Holding Management, MVM Ltd.
36
4.4.1. General Services
36
4.4.1.1.
Administrative Services 36
4.4.1.2. Maintenance of Facilities
36
37
5.1
Practice of Environmental Management 38
5.2
Consumptions and Emissions Affecting the Environment
38
5.3
Environmental Costs and Expenditures
41
6.
CORPORATE SOCIAL RESPONSIBILITY
43
6.1. High Priority Communications Programmes of the MVM Group in 2013
43
6.2. Corporate Social Responsibility
45
7.
HUMAN RESOURCES POLICY 48
8.
MAIN FIGURES OF THE COMPANIES BELONGING TO THE GROUP50
3
ENVIRONMENTAL PROTECTION TABLE OF CONTENTS
5.
MVM GROUP ANNUAL REPORT 2013
MVM GROUP ANNUAL REPORT 2013
STRUCTURE OF
THE MVM GROUP
4
1
1.1 Structure of the Group, Activities of the Companies
The member companies of the MVM Group shown in the
sociated company (one), associated companies (four) and
following figure (showing control-based categorisation)
other interests (seven).
qualify as subsidiaries included in full consolidation, ex-
On 31 December 2013, the MVM Group consisted of a to-
cept for the companies included in the ‘Investments’ cate-
tal of 61 companies, including, with regard to ownership
gory. Rating of the companies included in the ‘Investments’
rights, one parent company, 41 subsidiaries, one joint ma-
category from a consolidation point of view:
nagement company, eight associated companies and ten
»»
Joint management company: EKS Service Ltd.
other interests.
»»
Companies treated as associated companies: South
Significant changes in the size, structure or ownership
Stream Ltd., Dunamenti Power Plant Ltd., Mátra Power
conditions of the organisation during the reporting period
Plant Ltd., Mátra Power Generation Co. Ltd., Kárpát
were as follows: At the end of 2013, the fully consolidated
Energo Ltd., MPVI Mobile Ltd. and ER-EF Power Plant
group included 38 companies. During the year, the number
Ltd.
of companies included in full consolidation increased by
Other interests: ELMŰ plc, ÉMÁSZ plc and TIGÁZ Ltd.
the companies Central Smart Grid Operator Ltd., Hunga-
»»
rian Gas Storage Ltd., Hungarian Gas Trade Ltd. and PO-
panies regarded as consolidated from an accounting point
WERFORUM Ltd.
of view also includes other subsidiaries treated as an as-
1 | STRUCTURE OF THE MVM GROUP
In addition to those listed in the figure, the group of com-
5
MVM GROUP ANNUAL REPORT 2013
61
l of
a
t
o
at
3.
i se d
r
20 1
p
r
m
e
mb
p co
e ce
ro u
D
G
1
MVM as at 3
Th e
s
ie
pa n
co m
business
unit
MVM
Partner d.o.o.
MVM Partner
Energija d.o.o.
MVM ERBE Ltd.
ATOMIX Ltd.
ENERGO-MERKUR
Ltd.
Vértes
Power Plant Ltd.
MVM MIFŰ Ltd.
MVM
Trade Poland
Sp.z.o.o.
MVM-ADWEST
Marketing GmbH
Powerforum Ltd.
MVM
BVMT Co. Ltd.
MVM GTER Ltd.
MVM
Hungarowind Ltd.
Hungarian Gas
Trade Ltd.
HUPX Ltd.
HUPX
Derivative Ltd.
CEEGEX Ltd.
MAVIR Ltd.
Central Smart
Grid Operator
Ltd.
Hungarian Gas
Transit Ltd.
Hungarian Gas
Storage Ltd.
ENERGY EXCHANGE
OPERATION
TRANSMISSION, SYSTEM OPERATION,
NATURAL GAS STORAGE AND ENERGY
EXCHANGE OPERATION
TRANSMISSION, NATURAL
GAS STORAGE AND SYSTEM OPERATION
MVM GROUP ANNUAL REPORT 2013
* Company included in full consolidation in proportion to the capital share of the parent company (by the quota method)
** Key companies from among interests other than companies included in full consolidation.
*** Companies removed from full consolidation due to involuntary/voluntary liquidation or the termination of activities
Bánhida
Power Plant Ltd.
MVM Partner
Bucharest srl
MVM
Partner Serbia
d.o.o.
MVM North Buda
Power Plant Ltd.
MVMI Information
Technologies
Service Centre Ltd.
MVM Partner
Ltd.
MVM Paks II
Nuclear Power Plant
Development Ltd.
MVM NET Ltd.
MVM OVIT Ltd.
MVM Paks
Nuclear Power
Plant Ltd.
TRADE AND SUPPLY
CHAIN MANAGEMENT
TECHNICAL
SERVICES
TELECOMMUNICATIONS AND IT
SERVICES
TRADE AND SUPPLY CHAIN
MANAGEMENT
POWER AND HEAT
GENERATION
POWER AND HEAT
GENERATION AND
TECHNICAL SERVICES
ÉMÁSZ Plc.
ELMÛ Plc.
Mátra Power
Plant Ltd.
Dunamenti Power
Plant Ltd.
TIGÁZ Ltd.
MPVI Mobile Ltd.
South Stream
Hungary Ltd.
EKS-Service Ltd.
Niker d.o.o.
MVM Hotel
Panoráma Ltd.
MVM
Hotel Vértes Ltd.
ER-EF Power
Plant Cooperation
Development
Ltd. ***
Kárpát Energo
Ltd. ***
Mátra Power
Generation Co.
Ltd. ***
MVM Ltd.
Római Office
Building Ltd.
MVM KONTÓ Ltd.
MVM
Villkesz Ltd.
HOLDING MANAGEMENT
HOLDING MANAGEMENT
FACILITY
MAINTENANCE
GENERAL SERVICES
ADMINISTRATIVE
SERVICES
(MEMBERS OF THE RECOGNISED CORPORATE GROUP HIGHLIGHTED)
6
sub-business
unit
CATEGORISATION OF THE MEMBER COMPANIES OF THE MVM GROUP BY BUSINESS UNIT
High priority investments **
1 | STRUCTURE OF THE MVM GROUP
2
MAIN FINANCIAL INDICATORS
OF THE MVM GROUP
2.1 KEY TECHNICAL AND ECONOMIC INDICATORS OF THE MVM GROUP
2012
2013
Change (%)
2013/2012
Installed capacity of power plants
MWe
2,903
2,903
-
Electricity generated (gross)
GWh
17,262
16,520
-4.3
Electricity sold
GWh
28,621
27,362
-4.4
Electricity purchased
GWh
11,622
11,095
-4.5
Heat sold
TJ
3,110
2,982
-4.1
Net sales
HUFm
767,754
922,021
+20.1
EBITDA
HUFm
152,414
106,358
-30.2
Profit/(loss) after tax
HUFm
73,605
32,259
-56.2
Total assets
HUFm
1,008,414
1,424,630
+41.3
Equity
HUFm
620,726
704,404
+13.5
Net financial liability (outstanding bank loans - liquid
assets)
HUFm
8,826
202,790
+2,197.6
Fixed Assets Ratio
%
64.1
62.3
-2.8
Rate of Return on Assets (ROA)
%
7.3
2.3
-69.0
Rate of Return on Equity (ROE)
%
11.9
4.6
-61.4
Rate of Return on Sales (ROS)
%
9.6
3.5
-63.5
Net debt / Equity
-
0.01
0.29
+1,924.7
Net debt / EBITDA
-
0.06
1.91
+3,192.5
EBITDA / Interest paid
-
35.94
14.75
-59.0
Operating cash flow
HUFm
105,290
-149,509
-242.0
Assets in course of construction
HUFm
55,728
58,518
+5.0
persons
7,739
7,942
+2.6
8
Unit
2 | MAIN FINANCIAL INDICATORS OF THE MVM GROUP
Key indicator
MVM GROUP ANNUAL REPORT 2013
Average headcount
2.2 KEY FINANCIAL DATA OF SUBSIDIARIES
Net sales
Operating expenses
2013
Change
(%)
2013/2012
2012
2013
Change
(%)
2013/2012
HUFm
HUFm
%
HUFm
HUFm
%
13,545
9,630
-28.9
27,333
22,693
-17.0
184,243
185,528
+0.7
149,815
149,407
-0.3
0
2
+14,761.7
274
1,280
+366.4
18,111
12,651
-30.1
28,506
28,119
-1.4
MVM MIFŰ Ltd.
9,604
6,830
-28.9
9,513
7,274
-23.5
MVM North Buda Cogeneration
Power Plant Ltd.
10,267
9,613
-6.4
10,341
10,052
-2.8
3,711
3,500
-
2,555
2,323
-9.1
10,604
11,627
+9.6
10,234
11,317
+10.6
1,640
1,654
+0.9
811
687
-15.2
5
11
+145.1
84
281
+234.4
MVM OVIT Ltd.
47,008
53,142
+13.0
47,545
52,075
+9.5
MVM ERBE Ltd.
4,662
4,754
+2.0
4,934
5,000
+1.3
ATOMIX Ltd.
4,964
5,236
+5.5
5,024
5,270
+4.9
245
433
+76.9
246
426
+73.1
10,970
13,608
+24.1
10,903
13,083
+20.0
2 | MAIN FINANCIAL INDICATORS OF THE MVM GROUP
7,912
8,282
+4.7
7,712
7,998
+3.7
9
0
171,625
-
0
186,210
-
416,059
609,407
+46.5
411,746
626,369
+52.1
3,497
6,764
+93.5
3,344
6,746
+101.7
MVM Partner d.o.o.
994
3,269
+228.8
963
3,254
+238.0
MVM Partner Energija d.o.o.
994
282
-71.6
993
284
-71.4
3,248
0
-100.0
2,974
15
-99.5
0
810
-
7
808
+11,605.4
11,031
2,060
-81.3
11,204
2,176
-80.6
89
25
-71.5
65
14
-78.3
133,800
135,426
+1.2
121,676
124,541
+2.4
Central Smart Metering Ltd.
0
0
-
0
1
-
Hungarian Gas Transit Ltd.
10
6
-43.2
182
263
+44.5
Hungarian Gas Storage Ltd.
0
6,912
-
0
5,049
-
710
836
+17.7
731
878
+20.1
15
0
-100.0
15
2
-85.7
3
39
+1,289.6
109
188
+72.0
1,443
1,686
+16.8
1,406
1,637
+16.4
2,009
2,093
+4.2
1,214
1,519
+25.0
808
737
-8.8
770
729
-5.3
MVM Hotel Vértes Ltd.
175
173
-1.2
319
379
+19.0
MVM Hotel Panoráma Ltd.
193
209
+8.2
272
287
+5.5
Niker d.o.o.
136
139
+2.5
109
109
-0.2
MVM Ltd.
MVM Paks Nuclear Power Plant Ltd.
MVM Paks II Nuclear Power Plant
Development Ltd.
Vértes Power Plant Ltd.
MVM BVMT Co. Ltd.
MVM GTER Ltd.
MVM Hungarowind Ltd.
Bánhida Power Plant Ltd.
ENERGO-MERKUR Ltd.
MVM NET Ltd.
MVMI Information Technologies
Service Centre Ltd.
Hungarian Gas Trade Ltd.
MVM Partner Ltd.
MVM Partner Serbia d.o.o. Beograd
MVM Partner Bucharest
MVM Trade Poland Sp. z.o.o.
MVM-ADWEST Marketing GmbH
POWERFORUM Ltd.
MAVIR Ltd.
HUPX Ltd.
HUPX Derivative Ltd.
CEEGEX Ltd.
MVM KONTÓ Ltd.
Római Office Building Ltd.
MVM Villkesz Ltd.
MVM GROUP ANNUAL REPORT 2013
2012
Member companies included in the full
consolidation of the MVM Group
EBITDA
Member companies included in the full
consolidation of the MVM Group
MVM Ltd.
MVM Paks Nuclear Power Plant Ltd.
MVM Paks II Nuclear Power Plant
Development Ltd.
2012
2013
Change
(%)
2013/2012
2012
2013
Change
(%)
2013/2012
HUFm
HUFm
%
HUFm
HUFm
%
-6,265
-6,352
-1.4
1,717
1,728
+0.7
64,299
60,514
-5.9
24,114
20,398
-15.4
-127
-263
-106.5
2
21
+881.0
11,003
-3,324
-130.2
4,248
4,341
+2.2
718
-56.3
1,031
908
-11.9
1,353
794
-41.3
782
783
+0.2
MVM BVMT Co. Ltd.
2,287
2,333
+2.0
1,110
1,128
+1.6
438
363
-17.1
20
9
-53.0
1,248
1,421
+13.9
353
353
+0.1
-79
-206
-159.9
0
0
+0.0
MVM OVIT Ltd.
1,513
2,282
+50.9
626
608
-2.8
MVM ERBE Ltd.
221
33
-85.0
62
45
-27.4
ATOMIX Ltd.
56
87
+55.4
41
55
+33.7
2
8
+238.7
2
1
-44.9
MVM NET Ltd.
3,222
3,643
+13.1
3,154
3,093
-2.0
MVMI Information Technologies
Service Centre Ltd.
2,489
2,177
-12.5
2,077
1,744
-16.1
0
-11,157
-
0
24
-
16,667
2,067
-87.6
111
80
-27.4
152
19
-87.8
0
0
-
31
15
-53.9
0
0
-
1
-2
-216.1
0
0
-
275
-15
-105.3
0
0
-
-7
2
+134.2
0
0
-
-162
-115
+29.3
5
1
-77.7
39
15
-61.7
16
4
-74.8
33,679
32,433
-3.7
20,073
20,070
-0.0
0
-1
-
0
0
-
-74
-96
-29.9
4
3
-34.6
Hungarian Gas Storage Ltd.
0
3,754
-
0
1,672
-
HUPX Ltd.
17
-9
-155.0
17
21
+29.0
HUPX Derivative Ltd.
0
-2
-1,227.4
0
0
-
-104
-131
-26.7
3
17
+510.0
54
90
+66.0
9
9
+1.5
1,521
1,071
-29.6
417
419
+0.4
81
91
+13.0
25
26
+1.4
MVM Hotel Vértes Ltd.
-81
-179
-119.4
22
22
+0.4
MVM Hotel Panoráma Ltd.
-51
-41
+20.5
24
24
+2.7
Niker d.o.o.
29
33
+14.8
2
3
+28.3
MVM GTER Ltd.
MVM Hungarowind Ltd.
Bánhida Power Plant Ltd.
ENERGO-MERKUR Ltd.
Hungarian Gas Trade Ltd.
MVM Partner Ltd.
MVM Partner Serbia d.o.o. Beograd
MVM Partner d.o.o.
MVM Partner Energija d.o.o.
MVM Partner Bucharest
MVM Trade Poland Sp. z.o.o.
MVM-ADWEST Marketing GmbH
POWERFORUM Ltd.
MAVIR Ltd.
Central Smart Metering Ltd.
Hungarian Gas Transit Ltd.
CEEGEX Ltd.
MVM KONTÓ Ltd.
Római Office Building Ltd.
MVM Villkesz Ltd.
MVM GROUP ANNUAL REPORT 2013
1,641
10
MVM MIFŰ Ltd.
MVM North Buda Cogeneration
Power Plant Ltd.
2 | MAIN FINANCIAL INDICATORS OF THE MVM GROUP
Vértes Power Plant Ltd.
Depreciation
Profit/(-)loss after tax
Shareholders' equity
2012
2013
Change
(%)
2013/2012
HUFm
HUFm
%
HUFm
HUFm
%
MVM Ltd.
53,698
43,336
-19.3
439,708
543,871
+23.7
MVM Paks Nuclear Power Plant Ltd.
28,284
22,860
-19.2
129,610
129,605
-0.0
82
-52
-162.9
9,082
9,031
-0.6
4,926
-2,629
-153.4
3,339
710
-78.7
78
-530
-782.2
7,346
6,816
-7.2
-63
-452
-612.4
2,470
2,018
-18.3
1,360
82
-94.0
2,960
3,042
+2.8
MVM GTER Ltd.
315
190
-39.8
298
298
-0.0
MVM Hungarowind Ltd.
587
879
+49.6
3,125
3,125
-
-111
-229
-106.7
-331
-560
-69.2
MVM OVIT Ltd.
740
1,382
+86.7
7,308
7,308
+0.0
MVM ERBE Ltd.
190
15
-92.0
981
981
-
15
29
+90.6
180
200
+11.0
1
4
+467.4
77
81
+5.1
42
528
+1,159.0
25,186
25,253
+0.3
338
221
-34.5
5,392
5,392
-
0
-8,866
-
0
30,491
-
12,667
524
-95.9
22,099
22,099
+0.0
145
-17
-111.5
150
121
-19.2
32
13
-57.2
40
48
+20.4
1
-2
-215.7
9
7
-17.4
230
-12
-105.4
238
228
-4.3
-7
4
+164.0
4
8
+121.6
-185
-120
+35.2
1,172
1,075
-8.3
30
11
-63.4
244
244
-
11,685
8,195
-29.9
287,405
293,959
+2.3
Central Smart Metering Ltd.
0
-1
-
0
99
-
Hungarian Gas Transit Ltd.
51
4
-92.4
3,381
3,365
-0.5
Hungarian Gas Storage Ltd.
0
525
-
0
79,522
-
HUPX Ltd.
7
-16
-340.5
665
650
-2.4
HUPX Derivative Ltd.
0
-2
-1,742.8
16
15
-9.4
-101
-146
-44.5
179
112
-37.4
63
88
+39.1
300
300
-
564
209
-63.0
8,533
8,742
+2.4
MVM Villkesz Ltd.
-30
15
+152.3
55
70
+28.3
MVM Hotel Vértes Ltd.
-181
-229
-26.4
108
-121
-211.5
MVM Hotel Panoráma Ltd.
-91
-87
+4.6
166
79
-52.5
15
10
-36.3
-1,132
-1,137
-0.4
MVM Paks II Nuclear Power Plant
Development Ltd.
Vértes Power Plant Ltd.
MVM MIFŰ Ltd.
MVM North Buda Cogeneration
Power Plant Ltd.
MVM BVMT Co. Ltd.
Bánhida Power Plant Ltd.
ATOMIX Ltd.
ENERGO-MERKUR Ltd.
MVM NET Ltd.
MVMI Information Technologies
Service Centre Ltd.
Hungarian Gas Trade Ltd.
MVM Partner Ltd.
MVM Partner Serbia d.o.o. Beograd
MVM Partner d.o.o.
MVM Partner Energija d.o.o.
MVM Partner Bucharest
MVM Trade Poland Sp. z.o.o.
MVM-ADWEST Marketing GmbH
POWERFORUM Ltd.
MAVIR Ltd.
CEEGEX Ltd.
MVM KONTÓ Ltd.
Római Office Building Ltd.
Niker d.o.o.
MVM GROUP ANNUAL REPORT 2013
Change
(%)
2013/2012
11
2013
2 | MAIN FINANCIAL INDICATORS OF THE MVM GROUP
2012
Member companies included in the full
consolidation of the MVM Group
Total assets
Technical performance of projects
2013
Change
(%)
2013/2012
2012
2013
Change
(%)
2013/2012
HUFm
HUFm
%
HUFm
HUFm
%
604,226
918,518
+52.0
2304
1,460
-36.6
211,469
207,818
-1.7
17173
17,608
+2.5
11,236
9,806
-12.7
2112
2,156
+2.1
Vértes Power Plant Ltd.
32,055
22,318
-30.4
952
463
-51.3
MVM Ltd.
MVM Paks Nuclear Power Plant Ltd.
MVM Paks II Nuclear Power Plant Development
Ltd.
14,308
-15.4
27
7
-73.2
14,497
14,167
-2.3
2
15
+504.0
MVM BVMT Co. Ltd.
20,553
19,937
-3.0
268
76
-71.7
2,858
3,043
+6.5
11
8
-32.3
7,821
7,807
-0.2
0
4
-
729
561
-23.0
0
0
-
MVM OVIT Ltd.
22,497
28,109
+24.9
618
1,171
+89.4
MVM ERBE Ltd.
2,638
2,698
+2.3
16
18
+13.0
ATOMIX Ltd.
952
1,113
+16.9
75
78
+3.6
ENERGO-MERKUR Ltd.
129
185
+43.0
1
0
-86.6
30,656
32,339
+5.5
28,188
2,767
-90.2
10,001
15,015
+50.1
4,218
5,275
+25.1
0
228,999
-
0
130
-
99,659
86,175
-13.5
115
78
-32.6
MVM Partner Serbia d.o.o. Beograd
940
1,942
+106.6
0
0
-
MVM Partner d.o.o.
168
968
+477.9
0
0
-
MVM Partner Energija d.o.o.
126
9
-92.5
0
0
-
498
229
-53.9
0
0
-
5
143
+2,983.1
0
0
-
2,477
2,055
-17.1
0
0
-
282
260
-7.6
0
0
-
455,486
433,760
-4.8
17,210
14,818
-13.9
0
100
-
0
0
-
9,601
18,398
+91.6
5,534
10,905
+97.1
0
199,800
-
0
1,609
-
820
815
-0.6
38
23
-38.1
18
15
-14.0
0
0
-
CEEGEX Ltd.
224
164
-26.5
44
55
+24.9
MVM KONTÓ Ltd.
673
881
+30.8
6
3
-53.1
18,907
18,349
-3.0
56
35
-37.3
1,079
1,056
-2.1
1
23
+1,819.1
785
714
-9.0
0
31
+10,046.9
611
606
-0.9
19
16
-14.2
296
324
+9.4
0
6
+4,413.8
MVM GTER Ltd.
MVM Hungarowind Ltd.
Bánhida Power Plant Ltd.
MVM NET Ltd.
MVMI Information Technologies Service Centre
Ltd.
Hungarian Gas Trade Ltd.
MVM Partner Ltd.
MVM Partner Bucharest
MVM Trade Poland Sp. z.o.o.
MVM-ADWEST Marketing GmbH
POWERFORUM Ltd.
MAVIR Ltd.
Central Smart Metering Ltd.
Hungarian Gas Transit Ltd.
Hungarian Gas Storage Ltd.
HUPX Ltd.
HUPX Derivative Ltd.
Római Office Building Ltd.
MVM Villkesz Ltd.
MVM Hotel Vértes Ltd.
MVM Hotel Panoráma Ltd.
Niker d.o.o.
MVM GROUP ANNUAL REPORT 2013
16,909
12
MVM MIFŰ Ltd.
MVM North Buda Cogeneration Power Plant
Ltd.
2 | MAIN FINANCIAL INDICATORS OF THE MVM GROUP
2012
Member companies included in the full
consolidation of the MVM Group
Average headcount
persons
persons
%
215
240
+11.3
2,488
2,488
-0.0
7
59
+683.0
1,011
958
-5.2
43
43
-1.7
MVM North Buda Cogeneration Power Plant Ltd.
7
7
-4.8
MVM BVMT Co. Ltd.
3
3
-5.2
108
114
+5.4
MVM Hungarowind Ltd.
0
0
-
Bánhida Power Plant Ltd.
0
0
-
MVM OVIT Ltd.
1,592
1,596
+0.3
MVM ERBE Ltd.
231
223
-3.6
764
763
-0.1
7
6
-5.1
61
100
+63.3
146
178
+21.5
0
65
-
132
202
+53.2
0
0
-
MVM Partner d.o.o.
1
1
-
MVM Partner Energija d.o.o.
1
1
-25.0
MVM Partner Bucharest
1
1
-
MVM Trade Poland Sp. z.o.o.
0
0
-
MVM-ADWEST Marketing GmbH
7
1
-86.2
POWERFORUM Ltd.
0
1
-
575
576
+0.2
Central Smart Metering Ltd.
0
0
-
Hungarian Gas Transit Ltd.
7
10
+49.3
Hungarian Gas Storage Ltd.
0
184
-
24
25
+5.2
HUPX Derivative Ltd.
1
0
-100.0
CEEGEX Ltd.
3
8
+155.0
MVM KONTÓ Ltd.
114
124
+8.7
Római Office Building Ltd.
10
10
+4.2
MVM Villkesz Ltd.
71
70
-0.9
MVM Hotel Vértes Ltd.
35
34
-4.0
MVM Hotel Panoráma Ltd.
33
33
-1.0
5
5
-2.4
MVM Ltd.
MVM Paks Nuclear Power Plant Ltd.
MVM Paks II Nuclear Power Plant Development Ltd.
Vértes Power Plant Ltd.
MVM MIFŰ Ltd.
MVM GTER Ltd.
ATOMIX Ltd.
ENERGO-MERKUR Ltd.
MVM NET Ltd.
MVMI Information Technologies Service Centre Ltd.
Hungarian Gas Trade Ltd.
MVM Partner Ltd.
MVM Partner Serbia d.o.o. Beograd
MAVIR Ltd.
HUPX Ltd.
Niker d.o.o.
MVM GROUP ANNUAL REPORT 2013
Change
(%)
2013/2012
13
2013
2 | MAIN FINANCIAL INDICATORS OF THE MVM GROUP
2012
Member companies included in the full consolidation of the MVM Group
3
GY
E
AT
R
ST
3. STRATEGY
construction of installed facilities and route sections has
gic and operative corporate management model towards
been ongoing according to schedule since July 2013. The
strong, integrated management; for important precondi-
technical delivery of the project will take place in 2014, and
tions of value-creating growth are the establishment of
the target date for the start of commercial operation is 1
group-level integration and the increase of the efficiency
January 2015.
of operations and of the organisation that supports the
On 17 February 2012, the Shareholders’ Meeting of MVM
operations.
Ltd. approved the participation of the company in the Sou-
To this end, MVM Ltd. aimed to improve the management
th Stream Natural Gas Pipeline Project. After the decision
systems of the MVM Group, including primarily the intro-
of the Shareholders’ Meeting, MVM prepared the buy-out
duction of an integrated corporate management system
of the 50 per cent stake held by Hungarian Development
standardised at the group level and based on international
Bank Ltd. in South Stream Hungary Ltd. at face value. The
standards.
transaction was closed on 31 October 2012, simultaneously
The concept of the future integrated management system
with the signing of the Shareholders’ Agreement negotia-
was determined in 2011. To implement it, six implementati-
ted between MVM and Gazprom during 2012. Participati-
on projects and Transformation Programme Management
on in the project and the construction of the gas pipeline
(TRAFO) ensuring their coordinated direction, the verifica-
section in Hungary support the achievement of the goal
tion of their operation in accordance with the established
set in the Medium-term Strategy of MVM Ltd., whereby the
management concept and efficient change management
National Energy Group should become a key player also in
were established. Under the project, the Board of Directors
the gas market.
of MVM Ltd. approved the Group-level Organisational and
MVM Ltd. entered the AGRI Project in 2011, which is aimed
Operational Rules of the MVM Group as well as the group-
at examining the possibilities of transporting natural gas
level rules and related business processes regulating the
from Azerbaijan to the states of Central and Southeastern
group-level operation of the individual functions (econo-
Europe. Taking maximum advantage of the possibilities of-
mic, human resources, quality management, safety and
fered by the framework of Eastern Partnership, the project
security, communication, internal control and environmen-
implemented in regional cooperation conforms to one of
tal protection) in December 2012. All approved group-level
the strategic objectives of Hungary, the development of
rules could enter into force after the approval by the Court
new natural gas sources and transport routes to improve
of Registration of the amendment of the domination ag-
our energy security. The preparation of a feasibility study
reements concluded by MVM Ltd. as the dominant member
began in the second half of 2012 through the involvement
with the controlled companies which belong to the Recog-
of an external consultant and is expected to be completed
nised Corporate Group. The elaboration of other group-le-
in the first half of 2014.
vel rules (primarily for the electricity and heat generation,
Meeting the Shareholder’s requirements and achieving the
trading, legal and business development functions) and
goals set in the National Energy Strategy, the MVM Group
their validation at the level of member companies also be-
acquired stakes in Hungarian Gas Trade Ltd. and Hungari-
gan in 2012, and their approval was completed in 2013.
an Gas Storage Ltd. on 30 September 2013, and began to
The main advantage of the new integrated management
integrate the companies into the Group.
system, which meets modern corporate management
requirements and has been introduced continuously since
January 2013, is that it was reorganised on the basis of
a standardised operational process, using a uniform methodology for the whole Group. As part of it, the SAP 6.0
system was introduced.
In keeping with the Strategy of the MVM Group adopted in
April 2011 and currently being renewed, the methods and
directions which are to be used at the MVM Group to harmonise market demand and supply have been identified.
Hungarian Gas Transit Ltd., a project company to carry out
the construction between Vecsés and Balassagyarmat of
a Natural Gas Interconnection Pipeline between Hungary
and Slovakia aimed at increasing the security of domestic energy supply and reducing unilateral dependence, was
MVM GROUP ANNUAL REPORT 2013
tegic goals, it is necessary to move from a mixed strate-
15
established through legal succession in January 2012. The
3 | STRATEGY
MVM Ltd. has recognised that in order to achieve its stra-
4
F
O
S
E
I
T
I
V
I
T P
C
A OU
F
O GR
S
A VM
E
AR E M
TH
4.1 TRADE AND SUPPLY CHAIN MANAGEMENT (SCM)
domestic and international markets.
Hungary; at the same time, it also holds a considerable in-
MVM Partner Ltd. continued its regional expansion on its
terest in the retail and direct consumer sales markets, and
own behalf started in 2012, thus currently it has balance
is also present in the electricity trade of the Eastern and
groups in Germany, Austria, the Czech Republic, Slovakia,
Central European Region through its foreign subsidiaries.
France, Bulgaria and Slovenia. Simultaneously, it started
The Group plays an increasing role in the natural gas sto-
the voluntary liquidation of subsidiaries (in Slovenia and
rage and trade markets.
Poland) that had lost their functions due to changes in the
At the end of 2013, the Trade and Supply Chain Manage-
local regulatory environments. In addition, it holds mem-
ment Division of the MVM Group comprised the member
berships in the German, French, Slovenian, Slovakian and
companies listed below and their subsidiaries:
Czech energy exchanges and has commercial access to
»»
MVM Partner Energy Trading Ltd. (hereinafter: ‘MVM
the British energy exchange, where it also began trading
Partner Ltd.’),
in emission quotas in 2013.
- MVM Partner Serbia d.o.o. Beograd (hereinafter:
In 2013, the main sources of supply of MVM Partner Ltd.
‘MVM Partner Serbia d.o.o.’)
were domestic power plants, purchases from other trading
- MVM Partner d.o.o.
companies and import supplies. It sold electricity to the
- MVM Partner Energija, druzba za energijo d.o.o.
greatest extent to meet the electricity demand of universal
(hereinafter: ‘MVM Partner Energija d.o.o.’)
service providers, to end users in Hungary and to traders
- MVM Partner Bucharest S.r.l.
holding a trading licence in Hungary and, to a smaller ex-
- MVM Trade Poland Sp. z.o.o.
tent, to foreign partners.
»»
Hungarian Gas Trade Ltd.
In addition to asset-backed trade, MVM Partner Ltd. began
»»
MVM-ADWEST Marketing und Handelsgesellschaft
its own-account (proprietary) trading activity. The regional
GmbH (hereinafter: ‘MVM-ADWEST Marketing GmbH’)
presence of MVM Partner Ltd. became stronger in 2013.
Powerforum Ltd. *
The number of markets in the region on which it can trade
»»
increased to 12, and the number of cross-border transmis4.1.1 MVM PARTNER LTD.
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
The MVM Group is the dominant electricity wholesaler in
sion lines available for trading increased to 24.
17
MVM Partner Ltd. is the electricity trading subsidiary of
the MVM Group in the competitive market. In addition to
2012 **
2013
Change (%)
2013/2012
Total electricity purchased
16,596
26,979
+62.6
Of which: from domestic power plants
11,684
20,308
+73.8
172
325
+88.5
81
86
+6.4
3,425
1,623
-52.6
from import
965
4,175
+332.6
from the organised electricity market
269
462
+71.5
16,596
26,979
+62.6
5,310
9,050
+70.5
3,322
3,751
+12.9
-46
45
+198.6
to electricity traders
6,872
10,142
+47.6
balancing power sold
74
153
+106.8
1,065
3,836
+260.3
Principal electricity trade figures of MVM Partner Ltd. (GWh)
from the Transmission System Operator under the
mandatory power purchase scheme
balancing power purchased
from electricity traders
Total electricity sold
Of which: to universal service providers
to other users
system-level services sold
export sales
* Powerforum Ltd. is owned 50% by MVM Partner Ltd. and 50% by Hungarian Gas Trade Ltd.
** MVM Trade Ltd. merged into MVM Partner Ltd. on 1 July 2012. As a result, the 2012 figures include profits of the merged company for half a year, while its effect
appears for the whole year in 2013.
MVM GROUP ANNUAL REPORT 2013
domestic retail sales, its wholesale activity also extends to
viding companies (public utilities, banking services, etc.), as
its electricity sales in 2013. Procurements from domestic
well as, to a significant extent, small and medium-sized en-
power generators amounted to the majority of procure-
terprises. In the interest of further development, the com-
ments, 75.3%. The proportion of purchases from traders
pany also began, as of 1 September 2008, to focus on small
was 6.0%, while that of procurements from imports was
and medium-sized enterprises (SMEs) the annual electricity
15.5%. Procurements from the power exchange and pur-
consumption of which does not exceed 1 GWh. In this seg-
chases from MAVIR Ltd. amounted to 3.2% of the total pro-
ment, the company offers contractual schemes with a flexible
curement volume.
term for the individual products and fixed prices, based on
The majority of electricity purchases from power generators,
familiarisation with consumer habits and customised to the
71.1%, comprised purchases from the Paks Nuclear Power
given company. The most important principles of the admin-
Plant. The proportion of energy generated from coal and pur-
istration model are expedition and simplicity. MVM Partner
chased amounted to 18.0%, that of energy generated from
Ltd. assumes as many tasks as possible from its customers
natural gas and purchased was 8.8%; that of energy generat-
in changing their trader or consulting the network licence
ed from oil and purchased was 0.2%, while the energy gener-
holders.
ated from renewable sources and purchased was 1.7%, which
Regional markets play an active role in the management of
was generated completely from biomass. The proportion of
the electricity portfolio in Hungary, and widen the basis of
energy generated from other energy sources was 0.2%.
proprietary activities. The company is an active participant
33.5 % of all electricity sales were sales to companies hold-
in annual, monthly and daily cross-border capacity auctions
ing a universal service licence. In terms of sales to electric-
in order to be able to make good use of as many trading op-
ity users, when the market was opened on 1 January 2003,
portunities as possible.
the primary goal of the company was to supply electricity to
In terms of natural gas trading activities, the two main nat-
the very large industrial consumers. The customers of the
ural gas sales activities of the company are consumer sales,
company include prominent representatives of the domestic
during which it sells natural gas directly to domestic energy
industry from various industries (manufacture of machines,
consumers, and wholesale activities, during which it sells nat-
electronics industry, glass-making, cement industry, etc.),
ural gas to companies holding trading licences in the domes-
food chains with a number of company sites and service-pro-
tic market.
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
MVM Partner Ltd. purchased 27.0 TWh of electricity for
2012
2013
Change (%)
2013/2012
18
1,173
1,502
+28.0
24
162
+574.9
102
97
-4.9
0
4
-
from import
1,047
1,238
+18.3
Total natural gas sold
1,173
1,502
+28.0
Of which: to traders
1,085
1,123
+3.5
88
263
+198.8
balancing gas sold
0
5
-
MVM GROUP ANNUAL REPORT 2013
export
0
111
-
Principal natural gas trade figures of MVM Partner Ltd. (m3 million)
Total natural gas purchased
Of which: from traders
from storage facilities
balancing gas purchased
to users
1,502 million m 3 natural gas sold by MVM Partner Ltd. in 2013.
The Natural Gas Trading Business Unit of MVM Partner Ltd.
realised 82.2% of its sales in wholesale trade (1,234 million m3) to traders. Retail activity amounted to 17.5% of
the portfolio (263 million m3), and 0.3% (5 million m3) was
sold as balance and optional gas.
Due to changed market conditions (the significant role
attained by MVM Partner Ltd. on the market, launching a
large-scale natural gas sales activity), it was necessary to
introduce new means of communication and a new attitude in 2013 compared to the previously applied marketing
communications activity of MVM Partner Ltd.
activity of MVM Partner Ltd. in 2013 were as follows:
»»
direct and indirect sales support
»»
making the activities, products and services of the
Group known
»»
strengthening trust in the Group
»»
developing favourable opinions and an overall image
s
it
P
an ar t
ni ne
ve r L
rs
t
ar d.
c
y
in ele
20 bra
13 te
d
.
M
th
V
10
MVM GROUP ANNUAL REPORT 2013
M
19
between the consumers
MVM Partner Ltd. celebrated the 10th anniversary of its
establishment in 2013; accordingly, it launched an intensive communications campaign, which was aimed at increasing awareness of the company, increasing the loyalty of
existing partners, arousing the attention of potential customers to the services of MVM Partner Ltd. and generating
interest.
In 2013, the main business goals of the company were to
strengthen its substantial and dynamically growing presence in the competitive market, to acquire and retain consumers, to strengthen consumer loyalty, and to maintain
an offensive market behaviour (in addition to an ethical
business conduct) in order to acquire a further market
share.
MVM Partner Ltd. laid emphasis, also in 2013, on the development of existing products, the expansion of its portfolio of products for the various consumer segments, and
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
The fundamental goals of the marketing communications
the devising and introduction of new services, taking into
consideration real consumer demand supported by market
research; this activity may represent a competitive advantage primarily in the acquisition of micro, small and medium-sized end consumer clientele.
The MVM Partner PartnerCard was introduced in the
autumn of 2013. The PartnerCard is a reward given by the
company to companies
»» the annual electricity consumption of which does not
exceed 1 GWh
»» that have an electricity trade agreement concluded
with MVM Partner Ltd. not only for the reference year,
but also for the subsequent period
»» that pay their electricity invoices on time, by the deadline
MVM Partner Ltd. also organised customer meetings directly supporting sales in 2013.
It is especially important for MVM Partner Ltd., both as a
member company of one of the largest company groups
operating in a holding structure in the country and as a
stand-alone company trading in the competitive electricity
market, to take part, bearing in mind its business goals and
commensurate with its weight in the market, in the solution of social problems, embracing causes and foundations,
and to support events and organisations of special importance, which positively influence the image of the company
among the public. Its CSR activities were planned and performed in 2013 in accordance with these principles.
Similarly to previous years, the purpose of the activities
was to ensure that MVM Partner contribute to the creation of values the standard of which matches the market
position of the company and the norms adopted and represented by it. It deemed it warranted to sponsor primarily
highly prestigious projects and organisations, which reach
the general public, increase its goodwill, positively affect
the image of the company and the Group and serve its business goals.
4.1.2 MVM-ADWEST MARKETING GMBH
the Group under an agency arrangement was transferred
The activities of the company have been gradually trans-
in 2013. MVM-ADWEST Marketing GmbH filed for liquidati-
ferred to MVM Partner Ltd. starting in 2012. As a result, the
on at the end of 2013.
German and Austrian electricity and cross-border capa-
Due to the foregoing, the annual trade turnover of the
city trading rights were transferred in all timeframes (day
company decreased to 0.2 TWh in 2013. The following table
ahead, intraday and futures) both in OTC and exchange
shows the breakdown of traded volumes by market:
trading in October 2012. Trading in emission quotas within
Principal trade figures of MVMADWEST GmbH (GWh)
2012
2013
Change (%) 2013/2012
Sale
Purchase
Sale
Purchase
Sale
93
436
0
0
-100.0
-100.0
0
28
6
41
-
+48.9
Germany
335
248
14
109
-95.9
-56.0
Slovakia
286
2
0
0
-99.8
-80.5
59
60
175
45
+194.8
-25.2
773
773
195
195
-74.7
-74.7
Cross-border trade
Austria
Czech Republic
Total
4.1.3 HUNGARIAN GAS TRADE LTD.
MVM Hungarian Electricity Ltd. purchased 100% of the
shares in Hungarian Gas Trade Ltd. (previously E.ON Gas
Trade Ltd.) on 30 September 2013. Hungarian Gas Trade
Ltd. is the largest gas trader in Hungary. The company is
the most important partner of Hungarian gas distribution
companies in the reliable provision of natural gas supply
to residential gas consumers. In addition, it plays a significant role in the end consumer market, too.
Principal natural gas trade figures of Hungarian Gas Trade Ltd.
(m3 million)
2013*
Natural gas purchased in connection with sales
1,817
1,147
417
from producers
198
balancing gas purchased
54
Total natural gas sold
1,817
Of which: to traders
1385
to users
239
balancing gas sold
23
for export
170
* The values in the table include only Q4 2013 data, because the company has been a member of the MVM Group since then.
The development of the domestic and world economic
environment had a significant effect on the course of business and financial performance of Hungarian Gas Trade
Ltd.
The Hungarian forint became stronger against the US dollar by 0.3% on average in 2013, which had a favourable
effect on the development of the import purchase prices
of the company calculated in Hungarian forints, but had an
adverse effect on net sales. In 2013, the average price level of petroleum indirectly determining the price of natural
gas showed a decrease. This also had a favourable effect
on the development of purchase prices, while decreased
sales revenues.
In Hungary, the increase in natural gas consumption stopped in 2006, first followed by stagnation, then gradual and,
in the past years, a significant decline. The reasons for it
are the low level of economic output, the increase of the
share of alternative fuels against natural gas, increasing
energy awareness and a decline in the competitiveness of
electricity generated from natural gas. The quantity sold
by the company in the domestic market in 2013 decreased
year-on-year, while export sales exceeded the base year level. The decline in domestic sales was caused to a greater
extent by a shrinkage of the market and to a lesser extent
by a loss of markets to competitors.
The Management of the company made decisions to adapt
to a quickly changing market environment in the future; its
main objectives are to continuously renegotiate the terms
of the sales and purchase contracts comprising the trading
portfolio, to increase efficiency and to cut costs.
MVM GROUP ANNUAL REPORT 2013
from storage facilities
20
Of which: from traders
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
Purchase
4.1.4 POWERFORUM LTD.
the activity of registered users on the platform of POWER-
The main function of POWERFORUM Ltd. is to facilitate the
FORUM Ltd. within the framework provided by the elec-
further expansion of the domestic electricity market, with
tricity and natural gas market environments in the areas
special regard to its transparency and liquidity. All of its
of both the electricity and natural gas sections during the
sales revenue was generated within the Group in 2013.
2014 business year, thereby also increasing its efficiency.
The Management aims at providing enhanced support for
4.2 POWER AND HEAT GENERATION AND TECHNICAL SERVICES
The power and heat generation portfolio of the MVM Group comprised the following companies in 2013:
MVM Paks Nuclear Power Plant Ltd.
»»
MVM BVMT Co. Ltd.
»»
MVM Paks II Nuclear Power Plant Development Ltd.
»»
MVM GTER Ltd.
»»
Vértes Power Plant Ltd.
»»
MVM Hungarowind Ltd.
»»
MVM MIFŰ Ltd.
»»
Bánhida Power Plant Ltd.
»»
MVM North Buda Power Plant Ltd.
4.2.1 POWER AND HEAT GENERATION
The installed capacity and power and heat generation quantity data of the Generation Business Unit of the MVM Group are
shown in the following tables:
Installed capacity, broken down by primary energy source
Item
Unit
2012
2013
Change (%)
2013/2012
Installed electrical capacity
MWe
2,903
2,903
-
MWe
240
240
-
MWe
640
640
-
nuclear
MWe
2,000
2,000
-
wind
MWe
23
23
-
Installed heat capacity
MWth
6,536
6,536
-
MWth
88
88
-
natural gas and distillate oil/fuel oil
MWth
508
508
-
nuclear
MWth
5,940
5,940
-
Quantity of energy generated in a breakdown by primary energy source
Item
Unit
2012
2013
Change (%)
2013/2012
Electricity generated
GWh
17,262
16,520
-4.3
coal/biomass
GWh
995
813
-18.3
natural gas and distillate oil/fuel oil
GWh
422
289
-31.6
nuclear
GWh
15,793
15,370
-2.7
wind
GWh
51
49
-4.6
Net electrical output
GWh
16,214
15,532
-4.2
coal/biomass
GWh
833
674
-19.0
natural gas and distillate oil/fuel oil
GWh
415
281
-32.2
nuclear
GWh
14,916
14,527
-2.6
wind
GWh
51
49
-4.0
TJ
3,728
3,013
-19.2
TJ
353
347
-1.8
2,637
2,512
-4.8
Heat generated
coal/biomass
natural gas and distillate oil/fuel oil
TJ
nuclear
TJ
738
719
-2.5
Net heat output
TJ
3,117
2,990
-4.1
TJ
336
340
+1.1
natural gas and distillate oil/fuel oil
TJ
2,620
2,495
-4.8
nuclear
TJ
161
155
-4.1
coal/biomass
MVM GROUP ANNUAL REPORT 2013
coal
21
coal/biomass
natural gas and distillate oil/fuel oil
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
»»
4.2.1.1
MVM Paks Nuclear Power Plant Ltd.
Electricity generation and sales
MVM Paks Nuclear Power Plant Ltd. is a key electricity
The nuclear power plant closed 2013 with the fifth highest
generation company in Hungary. The nuclear power plant
electricity output of its history so far. It contributed 15,370
pollutes the environment the least in comparison with ot-
GWh to the domestic electricity output of 27,164 GWh last
her electric power plants and does not emit any carbon
year. The outstanding output is mainly due to the nearly
dioxide. Thus, the Paks Nuclear Power Plant is essential
88% capacity utilisation rate of the facility, whereby the
for the country from energy, environmental and economic
share of the power plant in electricity generation in Hun-
points of view alike.
gary increased over 50%.
The electricity generation and sales quantity data of MVM
Paks Nuclear Power Plant Ltd. are summarised in the following table:
Unit
2012
2013
Change (%)
2013/2012
Installed electrical capacity
MWe
2,000
2,000
-
GWh
15,793
15,370
-2.7
GWh
14,916
14,527
-2.6
GWh
14,818
14,439
-2.6
Electricity generated
Electrical output
Total domestic electricity sales
Heat sales
city output under a Power Purchase Agreement concluded
MVM Paks Nuclear Power Plant Ltd. sells the majority of
with MVM Partner Ltd. The company does not have a direct
the heat generated to Duna Center Therm LLC, and the re-
relationship with consumers. Quality-related information
mainder is purchased by MVM OVIT Ltd. and MVM Villkesz
can be found in the balance group agreement provided to
Ltd. from the nuclear power plant.
the trader and in the Power Purchase Agreement. Quan-
The heat generation and sales quantity data are summari-
tity-related information is set forth in the Annual Trade
sed in the following table:
22
MVM Paks Nuclear Power Plant Ltd. sells its total electri-
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
MVM Paks Nuclear Power Plant Ltd.
Agreement.
2012
2013
Change (%)
2013/2012
MWth
5,940
5,940
-
Heat generated
TJ
161
155
-4.1
Heat output
TJ
161
155
-4.1
Heat sold
TJ
161
155
-4.1
Installed heat capacity
Investments and development activities
2013 were determined, firstly, by tasks aimed at maintai-
The strategy of MVM Paks Nuclear Power Plant Ltd. is ai-
ning the technical standard in connection with the design
med at generating as much electricity as possible, safely,
lifetime of the units and, secondly, to a greater extent, by
economically and with an environmental impact as low as
the pro rata implementation of projects relating to lifetime
possible. The composition and scope of capital projects in
extension (LE).
MVM GROUP ANNUAL REPORT 2013
Unit
MVM Paks Nuclear Power Plant Ltd.
Lifetime extension (LE)
ments set by the authorities and to facilitate the more ef-
The implementation of the tasks of the Lifetime Extension
ficient and reliable generation of electricity. The research
Implementation Programme (LE IP) continued in 2013. In
and development tasks were aimed at the following main
2013, a high priority task was, in addition to the implemen-
technical areas:
tation of the tasks stated as a condition of continuance in
»»
reactor physics, reactor engineering, thermohydraulics
the LE permit for Unit 1, to submit an LE permit application
»»
ageing and lifetime management, testing of structural
for Unit 2 to the authority by no later than 31 December
2013. The underlying documentation of the permit app-
materials
»»
lication was compiled, checked and reviewed by an inde-
development of analytical tools to assess accidents
and breakdowns
development of chemical technologies
Energy Authority (HAEA) two months prior to the prescri-
»»
development of special test and measuring equipment.
bed deadline.
The company also carried out its research and develop-
MVM Paks Nuclear Power Plant plans to switch to a
ment activities this year, too, by involving only university
15-month operating cycle. It wishes to ensure an increa-
departments, research institutes and specialist compani-
se in availability and a decrease in maintenance costs by
es that have a considerable theoretical and experimental
introducing a new fuel cycle and applying new technolo-
background.
gical solutions, a new system of technical norms and new
The research and development commissioned to be perfor-
organisational solutions. As a result, the system of condi-
med by MVM Paks Nuclear Power Plant Ltd. are indirectly
tions taken as a basis for the long-term safe operation of
or directly related to sustainable development. In keeping
the units will also change. This will have a direct effect on
with the company’s strategic goals, in order to achieve
obtaining a permit for lifetime extension, since it will be-
economical operation with increased output, to carry out
come necessary to review and extend some of the analyses
lifetime extension, to increase the economic efficiency of
and ratings based on the current operating conditions and
fuel use and to achieve environmental protection goals,
providing grounds for lifetime extension. Taking all these
the company managed to mobilise the domestic research
into account, the task specifications for the underlying do-
institutes and to have development projects that can be
cumentation of the LE permit application for Unit 3 was
made use of in the long run carried out, which provide gro-
completed. At present, the relevant contract preparation
unds for the achievement of the goals. By ensuring energy
activity is under way.
generation by the Paks Nuclear Power Plant in the long
Activities of MVM Paks Nuclear Power Plant Ltd. in
term, providing grounds for energy generation and increa-
2013 in the area of research and development
sing installed capacity and availability, the above develop-
The research and development activities carried out in
ment activities directly contribute to the reduction of car-
2013 were motivated by the objectives to increase the sa-
bon dioxide emissions in Hungary.
fety of the Paks Nuclear Power Plant, to meet the require-
The implem
entation o
f t h e ta s ks
Implement
of the Life
ation Prog
time Exten
ramme (LE
sion
IP) continu
ed in 2013
MVM GROUP ANNUAL REPORT 2013
radiation protection
»»
23
»»
documentation were submitted to the Hungarian Atomic
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
pendent expert. The permit application and its underlying
4.2.1.2
MVM Paks II Nuclear Power Plant Develop-
tion and secondary and higher education in order to provi-
ment Ltd.
de the specialists required for the preparation, constructi-
Pursuant to Section 7(2) of Act CXVI of 1996 on Atomic Energy,
on, commissioning and operation phases of the new units.
Parliament granted its consent in principle required for the
Its internal review and comment process is under way; once
commencement of activities for the preparation of the estab-
it is completed, it will be handed over to the Ministry of Na-
lishment of new nuclear power plant units at the site of the Paks
Nuclear Power Plant on 30 May 2009. MVM Ltd. established the
tional Development.
»»
The first phase of the detailed assessment associated with
the feasibility of the condenser cooling water system of the
objectives of the Lévai Project were set in Government Resolu-
planned new nuclear power plant units was closed, which
tion No. 1194/2012 (VI.18.) Korm. on the Determination of Furt-
takes into account the conditions inherent to the site and
her Tasks Relating to the New Nuclear Power Plant Unit(s) to Be
its connection with the operational systems of the existing
Established at the Site of MVM Paks Nuclear Power Plant Ltd.
units. The development of the detailed assessment (Phase
Due to the importance of the project in the Energy Strategy,
2) associated with the selected technical solution began
MVM Ltd. decided in May 2012 to establish MVM Paks II Nuclear
with the specialist support of MVM Paks Nuclear Power
Power Plant Development Ltd. The company was registered by
Plant Ltd.
the Court of Registration on 10 August 2012.
»»
Devising a task aimed at the establishment of a Site Orga-
The company is responsible for compiling the technical speci-
nisation Database began; it comprises making a list of the
fication required for the establishment of the new units, car-
infrastructure components available at the future site and
rying out tests required for the various permits and licences,
their quality condition, as well as the assessment and cost
obtaining such permits and licences (the most important ones
estimation of the investment required by the utility and inf-
are the environmental permit and the site licence), preparing
rastructure capacities that will presumably become neces-
domestic companies for participation in the project and keeping
sary.
public support at a high level by continuously providing information to the public. A future task of the company is to prepare
Licensing tasks:
a general contractor’s agreement for establishment as well as
»»
The implementation of the Environmental Assessment
Programme was completed. The preparation of an Environ-
technical specification.
mental Impact Statement began. Due to the extremely dry
Pursuant to amendments of legislation that entered into force
weather conditions in 2012, it was necessary to carry out
at the end of 2012, MVM Paks II Ltd. is obliged to proceed du-
supplementary biomonitoring studies and meteorological
therefore, it has to apply the provisions of Act CVIII of 2011 on
measurements in 2013.
»»
The site assessment programme was updated in accordan-
Public Procurements. The amendment of the legal rule appli-
ce with the new Nuclear Safety Code, and the Geological
cable to the general contractor’s tender entered into force on
Survey Programme was reviewed and commented on by in-
1 August 2013.
dependent experts. The modified assessment programme
In order to provide a working place for its staff in the short term,
is expected to be submitted for approval by the authorities
the fit-out and refurbishment of offices in its office building located in Gagarin utca were completed at the beginning of 2013.
in 2014.
»»
A public procurement procedure was launched at the end of
Evaluating several possible solutions, the company prepared a
November for a 3D seismic assessment programme, which
proposal for providing a place for MVM Paks II Ltd. to operate in
forms part of the Geological Survey Programme, by the
the long term.
publication of an invitation to participate. Simultaneously,
The first draft regarding the examination of the legal frame-
an approval programme for the 3D seismic assessment and
work relating to state subsidies and competition law conditions
a hydrogeological monitoring programme were completed,
as well as for the long-term sale of the electricity generated by
the preparation of which for approval was started.
the new units was completed. Economic and preliminary legal
assessments relating to the possible introduction of the Cont-
Communications tasks:
ract for Difference (CfD) scheme in Hungary were carried out.
»»
In order to increase awareness about the company and
its recognition, it initiated media appearances, participa-
Technical analytical tasks:
ted in exhibitions and dispatched a public information lor-
»»
A second assessment of potential domestic suppliers were
ry. The company used nationwide public opinion polls for
completed in order to update the data and to identify the
back-testing recognition and the efficiency of the means of
potential group of contractors as accurately as possible.
communication. It organised an information campaign for
A second version of the National Training Strategy was
contractors in order to involve domestic contractors in the
completed, which specifies the tasks of vocational educa-
establishment of the project.
»»
MVM GROUP ANNUAL REPORT 2013
ring its procurements as a public service party inviting tenders,
24
fuel, operation and maintenance contracts on the basis of the
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
Lévai Project on 1 July 2009 to carry out all related tasks. The
4.2.1.3
Vértes Power Plant Ltd.
Mining
The activities of Vértes Power Plant Ltd. include brown
Established under the Eocene Programme, the Márkus-
coal mining and the generation and trading of electricity
hegy Mine is an underground facility with a depth of about
and heat, which it carries out at its Márkushegy Mine and
300 to 550 m, which produces Eocene brown coal. As the
the Oroszlány Power Plant. Based on the number of its
only operational deep coal mine in Hungary today, the
employees, it is one of the companies in the region provi-
mine provides fuel supply to the Oroszlány Power Plant by
ding the most jobs.
producing steam coal.
The output data of the Márkushegy Mine are summarised in the following table:
Márkushegy Mine
2012
2013
Change (%)
2013/2012
kt*
763
977
+28.0
TJ
8,101
9,929
+22.6
kJ/kg
10,615
10,162
-4.3
* kilotonne
2008) to also fire renewable energy sources, in addition to
240 MWe is owned by Vértes Power Plant Ltd. and oper-
firing coal dust, in a what is called fluidised bed installed
ates under a generation licence. The company operates it
at the bottom of the boiler for up to 45% to 50% of the
on sub-bituminous coal produced at the Márkushegy Mine.
thermal input.
The Oroszlány Power Plant began generating electricity
The Hungarian Energy and Public Utility Regulatory Au-
in 1961 with four 50 MW units entering service one after
thority issued an operating licence for the Oroszlány Pow-
the other, then district heating and hot water supply to
er Plant until 2020, with regard to the useful life of its
the town of Oroszlány started in the winter of 1978. After
main equipment.
its overhaul carried out in the 1980s, the Oroszlány Power
Vértes Power Plant Ltd. sells electricity only in Hungary
Plant with four operational units became a highly reliable
and typically to electricity traders. Its area of operation
electric and heat generating plant with 240 MW of electri-
is the competitive market; the company does not trade
cal and 84 MW of thermal capacity.
on the power exchange (HUPX). The most important busi-
A lifetime extension retrofit programme took place at the
ness partners of Vértes Power Plant Ltd. are the member
power plant between 2002 and 2005, under which a flue
companies of the MVM Group. Vértes Power Plant Ltd. did
gas desulphurisation plant operating with the wet lime-
not have any sales quota under the mandatory power pur-
stone - gypsum technology was constructed at the Orosz-
chase scheme in 2013. It sold the small amount of electric-
lány Power Plant. It became possible in the boilers at Oro-
ity generated from biomass in the competitive market.
The electricity generation and sales quantity data of Vértes Power Plant Ltd. are summarised in the following table:
Vértes Power Plant Ltd.
Unit
2012
2013
Change (%)
2013/2012
Installed electrical capacity
MWe
240
240
-
Electricity generated
GWh
995
813
-18.3
Net electrical output
GWh
833
674
-19.0
Electricity generated and sold
GWh
798
599
-25.0
GWh
77
0
-100.0
Balancing power and power regulation items sold
GWh
95
92
-3.5
Total domestic electricity sales
GWh
894
691
-22.7
of which: sale of electricity subject to
mandatory purchase
MVM GROUP ANNUAL REPORT 2013
szlány (in Boiler No. 1 from 2006 and in Boiler No. 2 from
The Oroszlány Power Plant with an installed capacity of
25
Electricity generation and sales
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
Coal production
Unit
Heat supply
and Oroszlány Service Ltd. for supplying the space heating and
Heat supply is provided under long-term framework agree-
domestic hot water demands of the town of Oroszlány and the
ments for district heating sales existing between the company
locality of Bokod with the quantities shown in the following table:
Vértes Power Plant Ltd.
Unit
2012
2013
Change (%)
2013/2012
Installed heat capacity
MWth
88
88
-
Heat generated
TJ
353
347
-1.8
Net heat output
TJ
336
340
+1.1
Heat output sold
TJ
328
331
+0.9
MVM MIFŰ Ltd.
ring its heat output with Miskolc Heat Supply LLC (herei-
The Tatár utca Gas Engine Heating Power Plant, the Hold
nafter: ‘MIHŐ LLC’), which is responsible for providing heat
utca Combined Cycle Heating Turbine Power Plant and the
supply to the city of Miskolc. The electricity cogenerated
Tatár utca Heating Plant operated by MVM MIFŰ Ltd. joint-
with heat is sold to MVM Partner Ltd.
ly provide the total heat supply to the heating districts of
The company purchases the fuel required for the operati-
Central Miskolc and Avas. The Bulgárföld and Diósgyőr Gas
on of the power plant units from MVM Partner Ltd. and, at
Engine Heating Power Plants meet the heat demands of
the Bulgárföld and Diósgyőr sites, from MIHŐ LLC in the
the given districts only in part.
2013/2014 gas year.
The company entered into a long-term contract for delive-
The heat and electricity generation and sales quantity data of the company are summarised in the following table:
2012
2013
Change (%)
2013/2012
Installed electrical capacity
MWe
64
64
-
Installed electrical capacity
GWh
178
107
-40.0
Net electrical output
GWh
173
104
-40.2
Electricity generated and sold
GWh
176
104
-40.8
MWth
408
408
-
TJ
1,217
1,004
-17.6
Net heat output
TJ
1,211
1,000
-17.4
Heat output sold
TJ
1,211
1,000
-17.4
Installed heat capacity
Heat generated
MVM North Buda Power Plant Ltd.
The power plant is engaged in combined heat and electrici-
The company is responsible for providing the conditions re-
ty generation. It sells the heat to FŐTÁV Ltd. under a long-
quired for the operation of a power plant with an electrical
term heat supply agreement. The heat generated meets the
capacity of 49.98 MWe and a thermal capacity of 100 MWth,
heat demand of the North Buda Heating District. The elec-
overseeing the operations and for carrying out sales.
trical output was sold through the system of HUPX Ltd.
4.2.1.5
The heat and electricity generation and sales quantity data of the company are summarised in the following table:
MVM North Buda Power Plant Ltd.
Unit
2012
2013
Change (%)
2013/2012
Installed electrical capacity
MWe
50
50
-
Total electrical output
GWh
217
167
-23.2
Electricity generated and sold
GWh
222
164
-26.1
MWth
100
100
-
Heat generated
TJ
1,420
1,508
+6.2
Heat output sold
TJ
1,409
1,495
+6.1
Installed heat capacity
MVM GROUP ANNUAL REPORT 2013
Unit
26
MVM MIFŰ Ltd.
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
4.2.1.4
4.2.1.6
MVM BVMT Co. Ltd.
a way that the noise generated by the operating power
MVM BVMT Co. Ltd. began its commercial operation in
plant is even lower than the existing ambient baseline
April 2011 with the aim of ensuring that the power plant
noise level. In order to minimise environmetal impact , the
implemented as a brownfield project at the Ajka site
power plant uses the existing power plant infrastructure of
substantially improve the controllability of the domestic
Bakony Power Plant Ltd. (substation, heating and cooling
energy system by meeting peak demand.
systems, demineralised water system, etc.) during its
The main equipment of the power plant units is a TRENT
operation. The operating and routine maintenance tasks
60 WLE DF dual fired gas turbine manufactured by Rolls-
are carried out by the specialists of MVM GTER Ltd.
Royce, with a BRUSH generator connected to it. Gas supply
The power plant sells its availability and electricity
to the power plant is provided by a newly built target
generation services to MVM Partner Ltd. In 2013, the sales
natural gas pipeline owned by the company itself from
services provided in the market of system-level services
the Ajka 2 gas reception station. With regard to the built
amounted to about 300 operating hours.
The electricity generation data of the company are set forth in the following table:
MVM BVMT Co. Ltd.
Unit
2012
2013
Change (%)
2013/2012
Installed electrical capacity
MWe
116
116
-
Total electrical output
GWh
13
8
-41.4
4.2.1.7 MVM GTER Gas Turbine Power Plant Ltd.
the Gas Turbine Business Unit is responsible for carrying
Of the activities of MVM GTER Gas Turbine Power Plant
out upkeep and maintenance works and participating in
Ltd., in addition to its core activities (the operation of
the implementation of development tasks specified and
power plant equipment and the sale of reserve capacities),
financed by its owner.
The electricity generation data of the company are set forth in the following table:
2012
2013
Change (%)
2013/2012
Installed electrical capacity
MWe
410
410
-
Total electrical output
GWh
14
7
-46.4
The noise level generated
by the operating power plant
units of MVM BVMT Co. Ltd.
is even lower than the existing
ambient baseline noise level.
MVM GROUP ANNUAL REPORT 2013
Unit
27
MVM GTER Ltd.
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
environment, noise control has been established in such
MVM GTER Ltd. has been selling the capacity of the power
4.2.1.8
plant units provided by its owner under a lease contract
MVM Hungarowind Ltd. operates eight wind turbines with
to the System Operator MAVIR Ltd. under a capacity res-
a total installed capacity of 23 MW, located in the vicin-
ervation and power purchase agreement in the market of
ity of Sopronkövesd and Nagylózs in Győr-Moson-Sopron
emergency back-up supply since 1 January 2003 and in the
County. Holding a sales licence, it sells electricity under a
market of one-minute back-up power plant capacities since
Mandatory Power Purchase Tariff scheme.
1 January 2010.
The well-definable activities of the company are electric-
The electricity generated during the operation of the gas
ity generation through the exploitation of wind energy and
turbine power plants is purchased, depending on the pur-
its sale. The profitability of the core activity is improved
pose of power plant start-ups, by MAVIR Ltd. when the
by the maintenance of the reliable operation of the wind
start-up is carried out by the System Operator or by MVM
farm, the provision of the essential operating conditions
Partner Ltd. in the case of status control test operation.
and the timely performance of necessary maintenance. In
MVM GTER Ltd. operates the equipment of MVM North
2013, the wind farm owned by MVM Hungarowind Ltd. con-
Buda Power Plant Ltd. and maintains its technical condi-
tributed to the expression of the commitment of the Group
tion (by performing maintenance and repair activities)
to sustainable development and environmental protection
under a long-term operating agreement. Similarly, the
by generating 48,984 MWh of electricity.
MVM Hungarowind Ltd.
tenance works of the gas turbine power plant owned by
MVM BVMT Co. Ltd.
The electricity generation data of the company are set forth in the following table:
MVM Hungarowind Ltd.
Unit
2012
2013
Change (%)
2013/2012
Installed electrical capacity
MWe
23
23
-
Total electrical output
GWh
51
49
-4.6
4.2.1.9
Bánhida Power Plant Ltd.
companies, large industrial consumers and foreign customThe area of operation of MVM OVIT Ltd. covers the whole
er Plant Ltd. on 31 December 2013.
territory of the country, it has sites in a number of regions
of Hungary, and employs nearly 1,600 persons. The company
4.2.2
TECHNICAL SERVICES
performs its traditional tasks and wide-ranging qualified un-
The technical services portfolio of the MVM Group com-
dertakings essentially in a market-oriented system. Its strate-
prised the following companies in 2013:
gic activities are as follows:
»»
»»
MVM OVIT National Power Line Ltd. (hereinafter:
‘MVM OVIT Ltd.’),
»»
»»
»»
design, establishment, expansion and overhaul of transmission lines and substations
MVM ERBE Power Engineering and Consulting Ltd.
»»
construction of overhead wires for railway electrification
(hereinafter: ‘MVM ERBE Ltd.’),
»»
maintenance, project management and establishment of
ATOMIX Trading and Service Ltd. (hereinafter: ‘ATO-
power plants
MIX Ltd.’),
»»
manufacture of industrial steel constructions
ENERGO-MERKUR Electricity Trading and Service Ltd.
»»
operation of the power supply system of industrial facili-
(hereinafter: ‘ENERGO-MERKUR Ltd.’)
ties
»»
4.2.2.1
MVM OVIT National Power Line Company Ltd.
transport of special, oversized and overweight goods by
road, rail and water
As a member of the MVM Group, MVM OVIT Ltd. is the es-
»»
special service activities
tablishment, installation and operating company with the
»»
manufacture of low-voltage auxiliary equipment
widest sphere of activities in the energy industry in Hun-
»»
operation, installation and refurbishment of telecommu-
gary. It has been performing the establishment, mainte-
nications networks
nance and development of high voltage transmission lines
The customers and customer groups served by MVM OVIT
and transformer stations for six decades. The activities of
Ltd. are the companies of the MVM Group (especially MVM
this company with great traditions are essentially associat-
Ltd., MAVIR Ltd. and MVM Paks Nuclear Power Plant Ltd.)
ed with the Hungarian transmission network and domestic
and other companies outside the Group (power plants, rail-
power plants, but, in addition, it regularly undertakes es-
way companies and power distribution companies). The Steel
tablishment, maintenance, refurbishment and development
Structure Manufacturing and Overweight Transport Business
tasks for domestic power distribution companies, railway
Units also have a significant Western European clientele.
MVM GROUP ANNUAL REPORT 2013
ers as well.
of Vértes Power Plant Ltd., which merged into Vértes Pow-
28
Bánhida Power Plant Ltd. is a currently inactive company
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
company also carries out the operation and routine main-
4.2.2.2
MVM ERBE Power Engineering and Consulting
4.2.2.4
Ltd.
E
NERGO-MERKUR Electricity Trading and
Service Ltd.
MVM ERBE Ltd. assumed a key role in the majority of the
Energo-Merkur Ltd. is engaged primarily in the wholesale
most important energy projects in Hungary during the pe-
and retail trade of electrical fittings and cables. It is a sub-
riod of more than 60 years that has elapsed since its est-
sidiary of MVM OVIT Ltd.
ablishment.
Its main area of activities:
4.2.3
Its main activities cover power plant projects, large nuc-
The telecommunications and IT services portfolio of the
lear and conventional power plants, small renewable
MVM Group comprised the following companies in 2013:
energy-based power plants (wind, biomass, biogas, landfill
»»
implementation.
The preparation and management of the projects and development of transmission networks by its engineering
office play a prominent role in its work. In its network
projects, it also carries out the design and submission for
approval of high, medium and low voltage cable and overhead cable networks as well as medium and low voltage
transformer stations.
In the approval processes of energy development projects required by the increasingly stringent environmental protection regulations, MVM ERBE Ltd. provides expert
consulting and a wide range of environmental protection
mental protection obligations of companies.
MVM ERBE Ltd. serves the measurement needs of companies performing the operation and maintenance of energy
facilities, and provide comprehensive energy (heat engineering and efficiency) and environmental (emissions and
noise) measurements for its customers. It has appropriate
(hereinafter: ‘MVMI Ltd.’)
»»
4.2.3.1
MVM NET Telecommunications Provider Ltd.
As a result of the changes in law associated with the introduction of the ITO model, the ownership of the telecommunications
network of MVM Ltd. was transferred to a newly established subsidiary, MVM NET Ltd., in 2012, by bringing the assets into this
company.
The company has a key role in providing a telecommunications
network serving system operation for MAVIR Ltd. As a member
of the MVM Group, it is also responsible for assuming a strategic
role in the telecommunications industry, which means serving
the infocommunications systems of the Government and customers in the telecommunications market to a high standard.
The operational model of MVM NET Ltd. is based on the following three groups of customers:
»»
ensuring the use of the telecommunications network of system interest used by MAVIR Ltd. for technology purposes
»»
ensuring the use of the National Trunk Telecommunications
Network (NTTN) for government purposes
»»
providing telecommunications services for business pur
poses to customers in the telecommunications market
measuring instruments, target software and its own re-
In 2013, the company successfully prepared the establishment
sources to carry out measurements, modelling and pollu-
of its national wireless data connection service based on the
tant transport calculations.
CDMA 450 technology, which is considered a main pillar for the
The company performs most of its activities in Hungary.
long-term strategy, and had the opportunity to participate in
the implementation of the distance-based toll payment system
4.2.2.3
ATOMIX Trading and Service Ltd.
introduced by the Government as of 1 July 2013. As a company
ATOMIX Ltd. is a subsidiary owned 100% by MVM Paks
at the beginning of its life cycle, MVM NET Ltd. wishes to pay
Nuclear Power Plant Ltd. Its services are essentially used
special attention to assessing risks and prospects in 2014. The
by its Owner. Its main activities are: property and security
preparation of a related list of risks and risk management plan is
guard protection services, firefighting and environmental
under way. In order to avoid and reduce risks, the company wis-
cleanup activities, passenger and goods transport activi-
hes to take risk management steps set forth in the above plan.
ties, operation of sports and recreation facilities, restaurant catering, operation of a canteen kitchen, provision of
cleaning and laundry services, educational and education
organisational activities and temporary placement of employees.
MVM GROUP ANNUAL REPORT 2013
The Accredited Measurement Technology Laboratory of
MVMI Information Technologies Service Centre Ltd.
29
services primarily for the implementation of the environ-
»»
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
the establishment of heating plants and oversight of their
MVM NET Telecommunications Provider Ltd. (hereinafter: ‘MVM NET Ltd.’),
gas, solar energy, geothermal energy and waste combustion), combined energy generation and the preparation of
Telecommunications and IT Services
4.2.3.2
MVMI Information Technologies Service Cent-
Its most important services are:
re Ltd.
»»
customer service
»»
IT ‘utility’ type services (e.g. e-mail, Internet, printing,
MVMI Information Technologies Service Centre Ltd. is responsible for providing IT services to the member compa-
desktop operation, etc.),
nies of the MVM Group and external customers, including
»»
provision of IT applications (e.g. SAP)
the operation and development of infrastructure and app-
»»
electronic document management
lication systems as well as related customer service and
»»
software and hardware procurements
service management activities.
4.3TRANSMISSION, SYSTEM OPERATION, NATURAL GAS STORAGE AND ENERGY EXCHANGE
OPERATION
the relevant statutory regulations, MAVIR Ltd.—as an organisa-
Gas Storage and Energy Exchange Operation Divisions of the
tion independent of the other participants in the electricity sys-
MVM Group comprised the member companies listed below and
tem—is responsible for ensuring the security of energy supply.
their subsidiaries:
The mission of MAVIR Ltd. as independent Transmission System
»»
MAVIR Ltd.
»»
Central Smart Grid Operator Ltd.
Operator is to ensure the uninterrupted, secure and sustainable
»»
Hungarian Gas Transit Ltd.
»»
Hungarian Gas Storage Ltd.
»»
HUPX Hungarian Power Exchange Company Ltd. (hereinafter: ‘HUPX Ltd.’), 2
-
CEEGEX Central Eastern European Gas Exchange Ltd.
(hereinafter: ‘CEEGEX Ltd.’),
- HUPX Derivative Ltd.
operation of the Hungarian electricity system, the economical
and efficient operation and development of the transmission
network and the availability of the required reserves; to regulate electricity transmission through the system; to operate the
balance group of the mandatory power purchase scheme; to
contribute to the establishment of the single European internal
market; and to participate in the work of international organisations.
MAVIR Ltd.
As an electricity transmission system operation licence holder,
MAVIR Ltd. transmits the electricity generated by domestic pow-
common transmission line network, which is owned and operat-
er plants or coming from import sources through the high-volt-
ed by the Hungarian Transmission System Operator, MAVIR Ltd.,
age network elements in its ownership with the route lengths
which is, at the same time, a member of the MVM Group. The
shown in the table and figure below to the distribution licence
Transmission System Operator operates independently of the
holders, which directly supply consumers. It is prescribed by law
other economic operators that use the transmission network,
that market players should have access to the transmission net-
and its independence is prescribed by law. In accordance with
work on equal terms.
The following table and figure show the transmission lines of MAVIR Ltd.:
Length of transmission lines
Item
750 kV
single circuit
400 kV
single circuit
double circuit
Unit
2012
2013
Change (%)
2013/2012
km
268
268
-
km
268
268
-
km
2,976
2,978
+0.1
km
1,588
1,590
+0.1
km
1,388
1,388
-
km
1,393
1,393
-0.0
single circuit
km
805
805
-0.0
double circuit
km
589
589
-
km
197
199
+1.1
single circuit
km
83
85
+2.2
double circuit
km
114
114
+0.3
total underground 220 kV
km
17
17
-
220 kV
120kV
2 HUPX Ltd. is a subsidiary owned 100% by MAVIR Ltd.
MVM GROUP ANNUAL REPORT 2013
In Hungary, high voltage electricity is transmitted on a single
30
4.3.1
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
At the end of 2013, the Transmission, System Operation, Natural
Map presentation of the transmission lines of MAVIR Ltd.
unity in order that the performance of these tasks can be
network and the international transmission lines, coordinates
ensured in a coordinated way and the most efficiently even
the maintenance plans of network licence holders, and decides
which deenergisations may be allowed and which may not in
in the long term, at optimum cost.
»»
During the development activities, the requirements that
ensure the enforcement of the ‘n-1’ principle prescribed
Furthermore, it provides for carrying out network maintenance
for transmission systems must be determined by means of
and refurbishments required for improving the operational
network calculations.
»»
For providing support to the substations of the transmis-
sets (transmission lines, substations and substation equipment),
sion system in the other direction, the possibility of inter-
and coordinating and implementing works conforming to the
connections with international transmission lines must be
laws, the Network Development Strategy and the Shareholder’s
taken into account and, considering a domestic alternative,
requirements.
the more favourable solution must be applied.
Development activities
»»
The required development activities are specified in the Net-
possibility of installing supports for a second transmission
work Development Plan of the Hungarian electricity system on
the basis of calculations and modelling. This plan is submitted
to the Hungarian Energy and Public Utility Regulatory Authority
Due to the quality parameters expected by consumers, the
network for larger cities must be examined.
»»
The availability of dependable reserve stocks required for
the secure operation of the grid must be ensured.
every year, and its implementation begins once it is approved.
In order to efficiently achieve the above goals, the company car-
By implementing what are prescribed in the Network Develop-
ried out development works rated by the Hungarian Energy and
ment Plan approved by the Hungarian Energy and Public Utility
Public Utility Regulatory Authority as ones serving public pur-
Regulatory Authority and other development activities, MAVIR
poses, the overhaul of the aged primary and secondary technol-
Ltd. ensures that the level of security of supply be maintained
ogies, and, simultaneously, the extension of remote control, the
or increased wherever possible. The necessary interventions on
overhaul of the transmission lines, including the replacement of
the network are determined and carried out by bearing in mind
bundle spacers and insulators, and the refurbishment of pylon
these goals, on the basis of the least cost principle.
foundations also in 2013. During the refurbishments, following
The development and refurbishment plan, which is updated
the practice of previous years, the company performed general
every year, was worked out with consideration to the above and
overhauls instead of partial refurbishments.
according to the following additional considerations:
By the end of 2013, a new component was added to the transmission network; with the commissioning of the new Debrecen
»»
The new construction, refurbishment and maintenance
Józsa 400/120 kV substation, the number of substations in-
works required for maintaining or, wherever possible, in-
creased to 30.
creasing the level of security of supply form a complex
MVM GROUP ANNUAL REPORT 2013
safety indicators, preserving and augmenting the network as-
31
order for supply to be secure and of high quality at all times.
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
MAVIR Ltd. monitors the condition of the domestic transmission
Due to the development works, in accordance with the Network
Dunamenti 120 kV substation part purchased by MAVIR Ltd. in
Development Plans, about 572 km of new 400 kV transmis-
2010, which were started in March 2012, continued during the
sion lines and six new transmission network substations were
year in accordance with the schedule. The overhaul of the 120 kV
established and several substations were expanded in Hungary
process equipment was completed on 17 October 2013, and the
between 1999 and 2013. Of these development projects, the last
fire and property protection and construction (refurbishment of
ones were as follows:
a building, construction of roads for equipment transport) works
»»
Started in March 2012, the construction works of the new
related to the overhaul were finished on 19 December. The over-
greenfield Debrecen Józsa 400/120 kV substation and the
haul of the substation is expected to be finished with the instal-
connected Sajószöged–Debrecen Józsa 400 kV and Debre-
lation work of an oil interceptor and the construction work of a
cen Józsa-Debrecen 120 kV transmission lines were com-
fire water pond in the first quarter of 2014. The central remote
pleted by the end of 2013. The substation was successfully
control of the substation began in December 2013.
commissioned on 21 October.
In order to maintain the operational safety and reliability of the
Started in 2012, the preparatory works for the establish-
transmission network and to considerably increase the service
ment of the Dunaújváros (Perkáta) 400/120 kV substation
life of the transmission lines, aged pylon foundations are refur-
continued. After the building permit had become final and
bished as a result of diagnostic tests. The construction works be-
non-appealable and contracts had been concluded with the
gan in accordance with the approved foundation refurbishment
owners, the construction works of the new greenfield sub-
technology. The refurbishment of foundations does not require
station began by the delivery of the work site on 5 July. The
deenergisation. Accordingly, the refurbishment works of the
planned construction works of the substation were carried
pylon foundations were completed in 2013 on the Szeged–Sán-
out by the end of the year; the control building, two fire
dorfalva III 120 kV transmission line, and were continued on the
water ponds and a fence around the substation were com-
Sajószöged–Szolnok 220 kV transmission line, and the refurbish-
pleted. The construction works will be continued according
ment of the pylon foundations of the Göd–National Boundary(–
to schedule in 2014 and 2015 in order to achieve commis-
Levice, Slovakia) 400 kV transmission line was also started. The
sioning by the end of 2015.
refurbishment of the foundations of pylons located in a flood-
The preparatory works for the establishment of the Gödöllő
plain on the Zapad, Slovakia–National Boundary–Albertirsa 750
(Kerepes) 400/120 kV substation to be implemented by
kV transmission line and in a poor condition was completed.
2016 began back in 2012. As part of it, a Preliminary Feasi-
After diagnostic tests on the Martonvásár–Litér 400 kV trans-
bility Study (PFS) was completed using the company’s own
mission line, the reinforcement of pylon foundations of poor sta-
resources, then a Detailed Feasibility Study (DFS), where
bility began at 42 pylon locations.
the technical contents of the project were further specified
As a result of the extraordinary weather conditions on 14 and
and the location of the new substation was selected in the
15 March, the restoration works of toppled and damaged trans-
outer areas of Kerepes, was carried out. In order to acquire
mission line pylons and damaged cables, OPGW, insulators and
the right to dispose of the real property concerned, con-
fittings on the Mukacheve, Ukraine–Sajószöged 400 kV trans-
tinuous consultations and negotiations were held during
mission line and on the Mukacheve, Ukraine–National Bound-
2013, as a result of which the plot was retired from cultiva-
ary–Tiszalök and the Kisvárda–Sajószöged 220 kV transmission
tion and the right to use the real property was assessed.
lines were carried out by July 2013.
The detailed and approval designs for the establishment of
As a result of the refurbishments, a European-level technology
the substation were completed, and the permitting proce-
ensures that the security of electricity supply be maintained at
dures began. The construction works will be completed be-
the European level at the present time not only in the new, but
tween 2014 and 2016. The planned date for the completion
also in the old—occasionally more than 50-year-old—facilities of
of the project is the end of 2016.
the transmission network in Hungary.
»»
»»
On the basis of the approved Network Development Plan, the
On the basis of derogation applications approved by the Euro-
company establishes other facilities in addition to the foregoing,
pean Commission at the end of 2012, partially free carbon diox-
designs and constructs new substations, prepares transmission
ide emissions quotas are granted to energy producers covered
line development projects due in the coming years, and lays
by the system once Phase 3 of the Emissions Trading System of
great emphasis on the energy efficient operation of its substa-
the European Union takes effect in 2013. However, the value of
tions using new, innovative solutions.
the quotas allocated free of charge has to be spent on the mod-
With respect to the technical solutions applied during continu-
ernisation of electricity generation. Two projects, the intelligent
ous development activities, the company aims at uniformity:
network pilot project (Central Smart Grid Operator Ltd.) and the
The transmission lines have been constructed practically with
interconnection pipeline between the natural gas systems of
the same pylon type for 10 years, and it also uses standard solu-
Hungary and Slovakia (Hungarian Gas Transit Ltd.), receive a
tions for the substations. The overhaul of the individual network
subsidy through a what is called ‘Support Mechanism’.
MVM GROUP ANNUAL REPORT 2013
velopment activities in the past years. The overhaul works of the
32
components has been carried on with great vigour besides de-
relation to transmission lines and substations
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
Summary of development activities performed in 2013 in
ject, which is aimed at the preparation of the introduction of
pleted. In accordance with the consultations with the Regional
smart metering and smart grids in Hungary. The primary ob-
Mining Authority, the permitting procedure will be carried out in
jective of the project is to perform metering and control tasks
stages, for which a ‘Consolidated Building Permit Design for the
associated with smart grids in a competition-neutral, cost-effi-
Regional Mining Authority’ was prepared. OTF Ltd. submitted the
cient and central way across several public utilities with regard
permit documentation and thus the permitting procedure began
to system users currently with settlement on a profile basis.
on 24 April 2013. In the case of the route, the permits were is-
Central Smart Grid Operator Ltd. was established in 2013 for the
sued after the owners’ consents or the decisions of Government
implementation of the pilot project, which operates under the
Offices substituting for the latter had been obtained, while in the
name of Central Smart Metering Ltd. from 2014.
case of established facilities, after the sites had been purchased
In addition to operational model, technical feasibility, financial
or their expropriation procedures had been closed, by 31 July
and financiability reviews, a concept plan preparing the com-
2013. This process was significantly accelerated by Government
munications campaign plan of the Pilot Project was completed
Decree No. 179/2013 (VI.7.) Korm. issued, according to which de-
in 2013. In addition to devising the operation of the project com-
cisions made in cases before the public administration authority
pany, the company also participated in the preparation of the
with regard to the Project might be implemented irrespective of
Government Decree setting the conditions of the Central Smart
an appeal. As a result, the permits of the Mining Authority (15)
Grid Pilot Project and in the submission of the draft. The setting
were issued by 31 July 2013. The company holds or continuously
of the internal competence of the organisation implementing
receives the majority of other permits issued by authorities oth-
the pilot project began by the appointment of experts involved
er than the Mining Authority (connection to the water main, road
in the preparatory project of the parent company.
construction, buildings and other structures).
Using the results of the preparation of the Pilot Project, a con-
OTF Ltd. entered into a contract with Solar Turbines Inc. for the
cept plan for the implementation of the project was completed,
delivery of two gas turbine-driven turbo compressor units. The
which, in addition to detailing the project goals to be achieved
test of the gas turbines and compressor units by the manufac-
and presenting the services provided by the infrastructure to
turer (San Diego, CA, USA) was successfully completed on a test
be implemented during the Pilot Project, forms the baseline for
bench in several steps in April and June 2013. After the success-
the preparation of the detailed technical specifications. In addi-
ful tests by the manufacturer, they were delivered to site and
tion to the technical design process, the review and analysis of
placed on their bases on 26 October 2013.
public procurement processes began in order to minimise the
The technological implementation (construction, mechanical
risks associated with procurement processes required for the
and electrical systems, and control and instrumentation) of the
implementation of the Pilot Project.
Balassagyarmat international metering station, the Romhány
sectionalising station and the Rád sectionalising station as well
4.3.3 HUNGARIAN GAS TRANSIT LTD.
as the construction of the operator’s building were completed.
In 2011, on the basis of the decision of the Shareholder, MVM
On the basis of the report by the General Contractor on com-
OVIT Ltd. was designated to construct a natural gas intercon-
pletion, the partial technical delivery and acceptance of the fa-
nection pipeline between Hungary and Slovakia. After the Hun-
cilities referred to above took place on 20 December 2013. The
garian Energy and Public Utility Regulatory Authority had grant-
tasks stated in the schedule of defects and deficiencies will be
ed the company a natural gas transmission licence and had set
completed in 2014.
the conditions of the natural gas transmission activity in its de-
The grading, fence construction, internal road construction,
cision, MVM OVIT Ltd. devised the project structure and began
surface drainage and sewerage works of the Szada compressor
the cooperation required for the preparation of the project with
station were completed in part and will be finalised by a date
co-service providers and potential financiers. The comprehen-
preceding commissioning due to the ongoing constructions.
sive legal examination of all circumstances showed the need for
The technological foundations were completed, and the tanks,
the establishment of a project company that, having demerged
devices and equipment were installed at the site. SOLAR com-
from the company, engaged in activities subject to a natural gas
pressor units were installed in October. The installation of the
licence. A Natural Gas Directorate was established within MVM
majority of the process pipeline system was completed, and
OVIT Ltd., which, after demerging from the company, has been
strength pressure tests are carried out by pressure loop, on a
operating under the name of Magyar Gas Transit Ltd. as of 1
continuous basis. The strength pressure test of the suction and
January 2012. The company began carrying out the technical
discharge headers of the compressors was carried out success-
design, approval and financing tasks of a DN 800 gas pipeline
fully on 17 October 2013. The construction works of the build-
project between Hungary and Slovakia in 2012. In addition to
ings were reported completed by the General Contractor, and
continuous procurement, the preparation of construction was
their partial technical delivery took place on 30 December 2013.
started in order to meet the deadline for the activation of the
The tasks stated in the schedule of defects and deficiencies will
project in January 2015 as expected.
be completed in 2014.
MVM GROUP ANNUAL REPORT 2013
uled, without hindrance. The building permit designs were com-
33
In 2013, the implementation of the project was ongoing as sched-
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
4.3.2 CENTRAL SMART METERING LTD.
MAVIR Ltd. began to devise a large-scale Smart Grid Pilot Pro-
In the case of the Vecsés dispatch point, the construction works
the on-site construction works began in July. During direction-
were reported completed by the General Contractor, and its
al drilling, the Dutch contractor encountered a rocky layer. The
partial technical delivery took place on 30 December 2013. The
existing borehole collapsed while being expanded, thus a deci-
tasks stated in the schedule of defects and deficiencies will be
sion was made to establish a new route. The new borehole was
completed in 2014.
completed in December 2013. The welded pipeline, which had
A contract was signed between Eustream and Hungarian Gas
undergone a strength pressure test and had been provided with
Transit Ltd. on 24 June 2013 for the construction of the pipe-
separate hard external insulation, was successfully pulled into
line section crossing the River Ipoly on the Slovakian side, and
the borehole on 21 December 2013.
4.3.4 HUNGARIAN GAS STORAGE LTD.
is the largest storage provider in Central and Eastern Europe.
Hungarian Gas Storage Ltd. is engaged in underground gas sto-
On 28 March 2013, MVM Ltd. signed a contract on the purchase
rage.
of the interests held by E.ON in the Hungarian gas industry. The
Hungary have a total storage capacity of 4.43 billion
m3,
thus it
change of ownership took place on 30 September 2013, the new
Management began its work, and operation is continuous.
Map presentation of the geographical distribution and capacities of the storage facilities of Hungarian Gas Storage Ltd.
UKRAJNA
UKRAINE
SZLOVÁKIA
SLOVAKIA
AUSZTRIA
AUSTRIA
Hajdúszoboszló
34
SZLOVÉNIA
SLOVENIA
ROMÁNIA
ROMANIA
Pusztaederics
Zsana
Kardoskút
SZERBIA
SERBIA
340 Mm3
266 Mm3
2.9 Mm3/day
2.5 Mm3/day
Mobile gas capacity:
Cushion gas capacity:
Withdrawal capacity:
Injection capacity:
Mobile gas capacity:
Cushion gas capacity:
Withdrawal capacity:
Injection capacity:
2,170 Mm3
1,435 Mm3
28 Mm3/day
17 Mm3/day
Total capacity:
280 Mm3
260 Mm3
2.9 Mm3/day
2.15 Mm3/day
Mobile gas capacity:
Cushion gas capacity:
Withdrawal capacity:
Injection capacity:
1,640 Mm3
2,210 Mm3
19.8 Mm3/day
10.3 Mm3/day
quired for conservation. The establishment of the facility’s own
»»
Withdrawal capacity: 53.6 Mm3/day
fire water system at Hajdúszoboszló was made necessary by the
»»
Injection capacity:
31.95 Mm3/day
fact that a fire water supply contract with MOL plc terminated
»»
Mobile gas capacity:
4,430 Mm3
on 1 December. The works were completed by the end of Novem-
Main development activities in 2013:
ber. The purpose of the project for the overhaul of the metering
The purpose of the projects involving the replacement of the
system of the entering pipes at the Hajdúszoboszló South Site is
filters in the wells at Hajdúszoboszló is to make up for capacities
to ensure the availability of metering in the long term, because
lost during operation and to adjust the capacities of the wells to
if ultrasound metering on the entering pipes fails, the control-
demand for withdrawal in winter. A planning project preparing
lability of the storage facility would greatly deteriorate and the
the overhaul of the injection system of the compressor hall was
metering of the output of the wells would become impaired. The
aimed at preparation and the performance of ad hoc works re-
work was completed at the South Site in 2013.
MVM GROUP ANNUAL REPORT 2013
HORVÁTORSZÁG
CROATIA
Mobile gas capacity:
Cushion gas capacity:
Withdrawal capacity:
Injection capacity:
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
The four underground gas storage facilities in its ownership in
4.3.5 HUPX HUNGARIAN POWER EXCHANGE COMPANY LTD.
HUPXDAM (Day-ahead) trading commenced on 20 July 2010.
In the day-ahead auction market, standard hourly-based
and block electricity contracts can be traded, the physical
performs its tasks in possession of a licence for operating
transmission of which is carried out in the Hungarian trans-
in the organised electricity market, granted to it pursuant
mission system. Price-based market interconnection was
to Decision No. 136/2009 of the Hungarian Energy Office.
launched in the Czech, Slovakian and Hungarian day-ahe-
According to it, it aims at serving market players in a com-
ad markets and the borders between them on 11 September
petition neutral way, efficiently, safely, transparently and
2012 for the purpose of implicit capacity allocation.
to a high standard; providing competitive exchange tra-
The trading market of HUPX for physical futures products
ding and settlement services; and providing reliable price
was launched on 19 July 2011. In the physical futures market
information to the widest possible range of the electricity
HUPXPhF, standard three-front monthly, four-front quar-
market, while maintaining its technical neutrality.
terly and three-front annual baseload and peak electricity
HUPX Ltd. ensures trading in the following electricity tran-
contracts can be traded, which are physically delivered to
sactions in the electronically organised electricity market:
the Hungarian transmission system after their maturity.
»»
in closed auctions with respect to day-ahead products
delivered to Hungary (DAM) and
»»
as part of continuous trading with respect to physical
futures (PhF) products delivered to Hungary
The electricity sales transacted by HUPX Ltd. are shown in the following table:
2012
2013
Change (%)
2013/2012
Sales of day ahead auction products
6,321,798
9,074,023
+43.5
Sales of physical futures products
6,291,749
7,134,410
+13.4
Sales transacted by HUPX Ltd. (MW/h)
4.3.5.1 CEEGEX Central Eastern European Gas Ex-
the domestic natural gas market. In addition to compliance with the legal rules, the establishment of the natural
gas exchange also facilitates meeting European regulation
requirements.
Limited Company (CEEGEX Ltd.), in 2011 in order to estab-
On CEEGEX, market players can have access to day-ahead,
lish a new and efficient trading platform.
monthly and quarterly physical futures products. The tran-
The CEEGEX Central and Eastern European Gas Exchange
sacted products are physically delivered to the Hungari-
was launched in Hungary on 2 January 2013. The trading
an Gas Balancing Point (HGBP). Delivery is guaranteed by
platform was established on the pattern of advanced inter-
Natural Gas Transport Ltd., while the settlement of the
national markets, on the basis of the traders’ expectations
transactions is provided for by KELER Central Contracting
and in accordance with the already operational standards,
Party Ltd.
thereby also projecting directions for the development of
lectr
ey e
k
a
p is
.
G ro u
M
gar y
V
M
Hun
n
Th e
i
r
le
l es a
who
icity
MVM GROUP ANNUAL REPORT 2013
HUPX Ltd. established its subsidiary owned 100% by it, CEEGEX Central and Eastern European Gas Exchange Private
35
change Ltd.
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
HUPX Ltd. is a subsidiary owned 100% by MAVIR Ltd., which
4.4 HOLDING MANAGEMENT, MVM LTD.
panies of the MVM Group and for four other companies outside the Group. Its customers are usually companies based
in Hungary. In the case of one customer, it provides comprehensive services to the Hungarian branch office of a foreign
(Austrian)-based company.
4.4.1.2 Maintenance of Facilities
Within the MVM Group, MVM Villkesz Ltd. is engaged in
facility management activities taken in the classical sense. Its other activities include the performance of technical service tasks associated with the operation of power
plants (maintenance, installation, transport, forwarding,
subcontract washing and dry-cleaning), motor vehicle
fleet management, provision of security services for the
Group and external market partners and the operation of
a printing house.
Római Office Building Ltd. operates, as its core activity,
the office building in its ownership (the Central Office Building of the MVM Group), located at H-1031 Budapest, Szentendrei út 207-209., Hungary, which includes letting real
estate to the member companies of the MVM Group, as
well as maintaining, cleaning and providing security guard
protection services for the let premises.
MVM Hotel Panorama Ltd. is engaged in the provision of
organised holidays and the operation of Hotel Panorama
located in Balatongyörök.
ganised holidays and the operation of Hotel Vértes ConfeNiker d.o.o. is a subsidiary registered in Croatia and engaged in the provision of organised holidays. It is responsib4.4.1.1 Administrative Services
le for the operation of the tourist and food establishment
The main function of MVM KONTÓ Ltd. is to provide finan-
‘Pansion ALBATROS’ located in Rovinj.
cial, accounting and payroll accounting services to a high
standard for the member companies of the MVM Group.
»»
Financial services: treasury, money transactions
(bank, cashier’s desk), entry of supplier invoices in
the books, invoicing, entry of customer invoices in the
books
»»
Accounting services: general ledger bookkeeping, asset management, taxation, monthly, quarterly and annual closing and drafting of reports
»»
HR services: payroll accounting including the com
putation of salaries, wages and social insurance provisions, keeping of staff records, keeping of cafeteria
records, settlement of cafeteria invoices and HR controlling
»»
SAP user competence centre: support of SAP users,
development and training
MVM GROUP ANNUAL REPORT 2013
MVM Hotel Vértes Ltd. is engaged in the provision of orrence and Wellness Hotel located in Siófok.
4.4.1 GENERAL SERVICES
36
Development activities
In 2013, the capital projects actually performed by MVM
Ltd. were worth HUF 1,460 million.
The majority of the development activities comprised power plant projects, which were necessary due to the wear
and obsolescence of certain components of the back-up
gas turbines. Other projects were associated with the normal operation of the company and smaller projects.
MVM KONTÓ Ltd. provides its services to 28 member com-
4 | AREAS OF ACTIVITIES OF THE MVM GROUP
Asset management
As holding centre, MVM Ltd. performs essentially the strategic management and control of the business organisations in its ownership. This sphere of activities includes
strategic planning and decision-making, the oversight of
the members of the Group, as well as the centralised financial management and asset management activities of
the Holding Company. The management-type tasks are not
applicable to the activities that are subject to a licence
(electricity generation, system operation, electricity trade
and transmission, and activities related to nuclear safety).
In the case of MAVIR Ltd., strategic management is performed by guaranteeing its operational independence and in
accordance with the provisions of the what is called Compliance Code approved by the Hungarian Energy and Public
Utility Regulatory Authority.
A substantial part of the revenues of the company comes
from dividend earnings paid by its subsidiaries, associated
companies and companies of other forms of participation.
In addition, the company leases out the secondary back-up
power plants in its ownership to its subsidiary, MVM GTER
Ltd. Furthermore, it also draws revenues from letting its
own real estates (office building and other properties).
L
TA
EN
M
N
RO
VI
MVM GROUP ANNUAL REPORT 2013
EN
37
5
N
PR
OT
EC
TI
O
5.1
PRACTICE OF ENVIRONMENTAL MANAGEMENT
of the Group in detail. The Report is available for reading
at both the Internet and intranet websites of MVM Ltd.
A certified Environmental Management System conforming to the specifications of standard ISO 14001:2005 is
operated by the following companies:
»»
»»
»»
»»
»»
»»
»»
»»
»»
»»
VM Hungarian Electricity Ltd.
M
MVM ERBE Power Engineering and Consulting Ltd.
MVM Paks Nuclear Power Plant Ltd.
MVM OVIT Ltd.
MVM VILLKESZ Ltd.
MVM GTER Ltd.
Vértes Power Plant Ltd.
Hungarian Gas Storage Ltd.
MVMI Ltd.
ATOMIX Ltd.
5.2 CONSUMPTIONS AND EMISSIONS AFFECTING THE ENVIRONMENT
Proportion of primary energy sources used in the MVM Group in 2013 (%)
38
0.03 8.35
0.04
MVM GROUP ANNUAL REPORT 2013
Fossil
energy sources
Renewable
energy sources
91.57
Nuclear
energy sources
Natural gas used for purposes
other than power generation
MVM Hungarowind Ltd. generated 48,984 MWh of electricity from a renewable energy source in 2013.
Water use and water discharge by the Group in 2013 (‘000 m3)
Quantity of cooling water used
2,931,663
Cooling water effluents
2,858,274
Quantity of process water used
1,551
Process wastewater/used water
770
Quantity of domestic water used
435
Domestic sewage
201
The water management practice of the Group complied with the relevant laws.
5 | ENVIRONMENTAL PROTECTION
The MVM Group recognises the importance of environmental protection and sustainable development and their economic and social significance, therefore, it has also
laid down these values in its Environmental Policy. The
Group treats environmental considerations as a priority in
all areas of its activities and expects their enforcement in
its business relations, too. By achieving the goals set in the
policy, the company efficiently contributes to the improvement of the state of the environment and the increase of
its own economic success. Identifying itself with the fundamental principles of sustainability, the company has set as
its goal to reduce the impacts on the environmental components and ecological systems, to cut pollutant emissions
and to eliminate the previously occurred environmental
damage, and to prevent further environmental damage
from being caused at the members of the MVM Group.
In accordance with the practice of previous years, the Sustainability Report of the MVM Group was prepared in 2013,
too, which also presents the most important elements of
the environmental protection performance and activities
Quantities of auxiliary materials and fuels used in 2013
Materials for water-using
operations
SF6 gas fill and make-up quantities in 2013 (kg)
t*
931
Oils
t
4,607
Fuel for the motor vehicle
fleet
L
3,261,489
Other materials
t
84,057
SF6 fill quantity
56,764.8
SF6 make-up quantity
565.9
The SF6 refill ratio is 1%, which is less than half of the
permitted rate.
* tonne
Carbon dioxide emissions of generation companies in 2013 (kilotonnes)
133.00
0.23
4.35
7.60
Vértes Power Plant Ltd.
86.83
5 | ENVIRONMENTAL PROTECTION
MVM MIFŰ Ltd.
MVM GTER Ltd.
1049.92
MVM North Buda
Power Plant Ltd.
MVM BVMT Co. Ltd.
MVM Paks Nuclear
Power Plant Ltd.
The CO2 emissions of the MVM Group per useful energy output was 0.08 kg/kWh.
39
MVM Paks Nuclear Power Plant Ltd. generated 15,369.60 GWh of electricity with negligible carbon dioxide emissions.
Sulphur dioxide
1,217
Nitrogen oxides
1,573
Particulates
2
Wastes produced by the MVM Group in 2013 (tonnes)
5,032
Non-hazardous wastes
Hazardous wastes
9,609
MVM GROUP ANNUAL REPORT 2013
Air pollutant emissions of power plant sites in 2013 (tonnes)
Emissions and effluents from MVM Paks Nuclear Power Plant Ltd. in 2013
Total emission [Bq]
Actual emissions
relative to the emission
standards
1.19 x 109
1.93 x 10-4
2.86 x 1013
3.46 x 10-4
7.37 x 107
3.29 x 10-5
Tritium
4.05 x 1012
2.34 x 10-5
Radiocarbon
6.39 x 1011
1.81 x 10-4
Isotope groups
Gaseous emissions
Corrosion and fission products
Radioactive noble gases
Radioiodines
7.77 x 10-4
Total
Liquid effluents
Corrosion and fission products
Alpha emitters
1.00 x 10-3
2.24 x 1013
7.73 x 10-4
1.87 x 106
1.93 x 10-6
1.77 x 10-3
Total
The radiation impact of the operation of the nuclear power plant on the environment was negligible in 2013, too.
5 | ENVIRONMENTAL PROTECTION
Tritium
2.91 x 109
40
Soil and groundwater protection
The planning of the recultivation of the slurry disposal of
the Bánhida Power Plant and the Oroszlány Power Plant
are currently under way. The Inspectorate prescribed the
post-monitoring of the remediation of the Márkushegy
Mine of Vértes Power Plant Ltd. until 31 December 2012.
At the request of the company, taking into account the closing documentation, the competent authority declared the
remediation completed in its decision in 2013.
At the Inota gas turbine site owned by MVM Ltd., the performance of the required soil monitoring tasks are currently under way.
Noise control
In the areas of the Hévíz transformer substation adjacent
to the town of Hévíz, the noise measurements taken by the
Inspectorate established in 2011 that the standard was exceeded at night. In order to reduce the ambient noise load,
a noise reduction project was implemented in two steps.
Control measurements were taken in January 2014. On the
basis of the measurement results, the noise reduction effect of the project can be measured and felt. According to
plans, it will be fully completed by April 2014.
Biodiversity
In 2013, nest boxes were mounted on 16 high voltage pylons
for sakers and kestrels. The replacement of worn-out trays
and other devices by Standard aluminium nest boxes continued. In addition to sakers and kestrels, the presence of
Eurasian hobbies could also be observed in 2013, which
increased the diversity of birds of prey species hatching
on pylons. The number of successful hatchings was 42 in
the artificial nests mounted on pylons.
Defective series of (Fire-fly and KS) bird diverters mounted for experimental purposes on transmission lines traversing the Moson Plain and other areas under the great
bustard protection programme were replaced before. Of
he second-generation diverters, 31 fell down again from
the electrical conductor. MAVIR Ltd. is examining the reason for this and will make a recommendation to the manufacturer for the modification of the device. On the basis of
preliminary tests, it is conceivable that the problem is to
be found in the oxidising effect of the rotary plates due to
the crown effect. If this is ascertained, diverters capable of
resisting the crown effects will have to be developed.
MVM GROUP ANNUAL REPORT 2013
The MVM Group treats the environmental
aspects as a priority in every field of it’s activities.
5.3 ENVIRONMENTAL COSTS AND EXPENDITURES
Expenses related to the environmental protection measures and projects of the MVM Group in 2013 (HUF ‘000)
Costs and expenditures
1,338,919.6
Assets in course of construction
1,327,972.9
Total
2,666,892.5
The MVM Group was obliged to pay HUF 200,000 in environmental fines in 2013.
41
sp
as
nw .
lio
p
bil
ou
Gr
.3
F1
VM
HU he M
ut
bo s in t
,a
t
13
jec
20
p ro
al
pit
5 | ENVIRONMENTAL PROTECTION
In
ca
to
ne
ir
nv
on
me
n ta
MVM GROUP ANNUAL REPORT 2013
en
l
CORPORATE SOCIAL RESPONSIBILITY
42
6
MVM GROUP ANNUAL REPORT 2013
6. CORPORATE SOCIAL RESPONSIBILITY
The MVM Group is the largest nationally owned, successful
acquisitions while maintaining creditworthiness, as well as
integrated energy group in Hungary, which is also promi-
cutting residential electricity and natural gas prices.
nent in its wider region; according to its vision, it is the
Entrusted with providing a secure energy supply and as
the 20th in the Eastern and Central European Region. In
a key player in the energy industry in Hungary, the MVM
the long term, it acts in the interest of the security of ener-
Group is responsible for supporting the economic efforts
gy supply and sustainable future of Hungary, its economy
of the then-current Government and implementing the pri-
and the population, which is one reason why its high pri-
orities set in the National Energy Strategy. The MVM Group
ority projects are the preparation of the establishment of
has met the business and communications challenges, and
new nuclear power plant units, presence in the natural gas
in addition to its responsible operation, also assumes a ma-
industry with increasing emphasis (both in regional natu-
jor role in the support of causes of concern for the whole
ral gas transmission and storage as well as in trade and
society, the achievement of the goals of society, as well
direct supply to the population and business consumers),
as the protection and development of our common values.
further growth that can also be implemented by planned
6.1
HIGH PRIORITY COMMUNICATIONS PROGRAMMES OF THE MVM GROUP IN 2013
During the past years, the awareness about, and the reputation
portion of energy produced from renewable energy sources
of, the MVM Group have also been enhanced in a measurable
and to improve energy efficiency. However, in order for these
way, as also demonstrated by professional recognitions, e.g.
changes to occur, a novel mentality is needed first of all,
the Business Superbrands Award and the HungarianBrands
which begins with seemingly trifle things such as removing
Award won for the third time by MVM Hungarian Electricity
the chargers from the outlets after the recharging of mobile
Ltd.
telephones. The public most often hears about novel renew-
43
able energy sources, but have difficulties in conceiving them
The most important milestones of the communications activi-
6 | CORPORATE SOCIAL RESPONSIBILITY
third most important business association in Hungary and
in practice.
sustainability programmes and campaigns, and information
As a continuation of its event establishing a tradition and
and attitude-shaping programmes presenting energy sources
unique initiative, the first to be held in a European capital in
without greenhouse gas emissions: renewable and atomic en-
2011, MVM Ltd. organised the third muster and race of alter-
ergy; the touring of the country by an Interactive Lorry bear-
native powered vehicles in Hungary at the Pest abutment of
ing the logo ‘Energy for Our Future’ and the MVM Energy Race;
the Chain Bridge, Budapest on 21 September 2013. Green tech-
as well as the assumption of a role by the Group in the gas
nologies already available today, which vehicle manufacturers
market, in particular, the introduction of the natural gas whole-
can use even today for protecting the environment, were pa-
sale and natural gas storage companies.
raded at the 3rd MVM Energy Race, but prototypes, modified
mass production vehicles, electrically-powered motorcycles,
MVM turned 50
go-karts, and solar-, compressed air- and human-powered ve-
MVM Hungarian Electricity Ltd. celebrated the 50th anniver-
hicles, each operating without pollutant emissions, also toed
sary of the establishment of its legal predecessor, Hungarian
the line. An increasing number of institutions of higher educa-
Electricity Trust, in autumn. The Group launched a series of
tion enter teams in the continually renewed muster in various
anniversary events on the occasion of the jubilee. Visitors to
categories year after year: In 2013, the teams of as many as
the Millenary Park in Budapest, Kölcsey Centre in Debrecen
five universities with significant engineering traditions com-
and the MVM Arena in Veszprém could become familiar with
peted. Visitors to the 3rd MVM Energy Race could also become
the outstanding events of the MVM Group and the Hungari-
acquainted with a vehicle exciting in another way: An Interac-
an electricity industry over the past five decades by means of
tive Lorry bearing the logo ‘Energy for Our Future’, presenting
energy-relates games and an interactive exhibition, and could
the use of nuclear energy for peaceful purposes, was awaiting
have a good time at free concerts.
them on the Danube embankment.
3rd MVM Energy Race
Sustainable transport
In its strategy called Energy 2020, the European Union aimed
As one of the largest Groups in Hungary and as a market
to reduce greenhouse gas emissions, to increase the pro-
player guaranteeing a secure energy supply, MVM Hungari-
MVM GROUP ANNUAL REPORT 2013
ties in 2013 were the 50th anniversary of the MVM Group, the
an Electricity Ltd. must set a good example in spreading an
Bird protection programme
environmentally aware mentality committed to sustainable
MAVIR Ltd. has been laying special emphasis on its bird pro-
development. The medium-term goal of the MVM Group is
tection activity along the high-voltage network for years. Na-
to further reduce its carbon dioxide emissions; an emphatic
ture conservation is an important consideration in develop-
element of, and possibility for, this is putting environmentally
ment decisions, too. As part of the Cultural Heritage Days, the
friendly motor vehicles into service. The Group operates two
company acquainted visitors to its Central Office Building and
electric cars, one Citroën C-Zero and one Opel Ampera, for ex-
its 400/220/120 kV Göd substation, especially important for
perimental purposes. Its staff can travel in the vehicles with-
the power supply to the capital, with its exemplary environ-
out greenhouse gas emissions. The ‘electric cars’ also play an
mental protection efforts at an interactive demonstration. The
important role in the public information and attitude-shaping
programme was promoted by the projection of films, a draw-
campaign of MVM; they help show day after day as well as at
ing contest, the preparation of artificial nests and a ‘meeting’
the most important festivals and mass events that the future
with great bustards. The company managed to get information
lies in emissions-free electricity and transport.
aimed at raising awareness in society to nearly 5,000 inter-
Interactive Lorry bearing the logo ‘Energy for Our Future’
spring of 2009 to the maintenance of the capacity of the Paks
After MVM Hungarian Electricity Ltd. paid the purchase price
Nuclear Power Plant and the preparation of the construction
for the interests held by E.ON in the Hungarian natural gas
of new nuclear power plant units, and the Lévai Project coordi-
industry laid down in a contract on 30 September 2013, it in-
nating the tasks had been established, MVM Ltd. and MVM Paks
troduced the executives, most important details and plans of
Nuclear Power Plant Ltd. launched a travelling exhibition in Oc-
the companies now operating under the names of Hungarian
tober 2009. The interactive exhibition set up in the articulated
Gas Trade Ltd. and Hungarian Gas Storage Ltd. at an exten-
lorry gives a comprehensive picture of the use of nuclear energy
sive press conference on 1 October. In addition to Csaba Baji,
for peaceful purposes, nuclear power plants around the world
Chairman and CEO of MVM Ltd., and Péter Horváth, CEO of
and, in particular, the Paks Nuclear Power Plant, which has been
MVM Ltd., the new executives of the natural gas companies
safely operating for 30 years and gives more than 50 per cent of
transferred to national ownership and the representative of
the domestic electricity output, the details of the maintenance of
the consulting company, which performed assets valuation
nuclear power plant capacity, as well as its favourable impacts on
during the transaction, also informed the participants of the
the economy and environmental protection.
press event, almost the whole Hungarian media.
Due to the positive reception of the travelling exhibition set
In accordance with its Medium-term Strategy, MVM decided to
out on a tour around the country in 2010, MVM Paks Nuclear
also enter areas that fit in well with its core activities, relying
Power Plant Ltd. and MVM Paks II Nuclear Power Plant De-
on its existing assets and expertise. In the past two years, the
velopment Ltd. continued the information programme also
MVM Group prepared for taking a significant role in the natural
in 2013. In addition to towns in Borsod-Abaúj-Zemplén, Sz-
gas market. Today, it is represented in all important segments
abolcs-Szatmár-Bereg, Hajdú-Bihar, Jász-Nagykun-Szolnok
of the gas business line, from infrastructure to trade. The pur-
and Békés Counties, the Interactive Lorry bearing the logo
chase of the two new natural gas companies have made the
‘Energy for Our Future’ also showed up at the largest fes-
MVM Group the largest nationally owned company, which is
tivals visited by Hungarian young people (Fishing on Orfű,
also a key player at the Central European level.
EFOTT, VOLT and SZIN) and one of the most important family
events in the country, the Kecskemét Air Show, and the 3rd
MVM Energy Race. A total of more than 170,000 interested
Du
aw r i n
re a re g t h
h a p u t n es e p
a ve a t i o s a a s t
de mea also n o bou yea
re mo sur be f, th t, a rs,
co n s a b e n e n d t h
gn tr
e
l
e M
t
iti ate e w nh VM he
on d ay an
s. by , a ce Gro
pr s a d i up
of l s n
es o
si
on
al
members of the public have visited the exhibition already.
MVM GROUP ANNUAL REPORT 2013
Introduction of natural gas companies
44
After Parliament had granted its consent in principle in the
6 | CORPORATE SOCIAL RESPONSIBILITY
ested individuals last year.
6.2 CORPORATE SOCIAL RESPONSIBILITY
Engaging in responsible and well-thought-out business
Therefore, MVM, as the co-founder of the Hungarian
practices, the MVM Group, as the largest National Energy
Junior Prima Award category in musical arts, also de-
Group, is committed to taking a role, in accordance with
livered its awards in 2013. The goal of the Group with
its economic weight, in supporting the Hungarian nation,
the award has been, for the sixth year in a row, to em-
preserving national and European values, supporting and
brace the most talented Hungarian young perform-
sponsoring outstanding performance and assisting those
ers in classical music, who can also show their talent
in need.
in the most outstanding concert series of Hungarian
classical musical life, the MVM Concerts series, which
also invites foreign artists who make their appearance
uniform identity, as practices of the Group sustained by
at the most pre-eminent concert halls in the world.
the common values of the Management and the employ-
The MVM Concerts brought word-famous performers
ees, which integrate the principles of environmental pro-
to stages in Hungary such as David Fray, Igor Levit,
tection, the preservation and development of national and
Grigory Sokolov or Yevgeny Kisin also in 2013.
European values, the promotion of equal opportunities,
coming generations and successful corporate operation.
The talent sponsorship programme ‘Give Opportunity
to Talents!’ established in 2011 also continued. Its main
The MVM Group is not only a key player in the electric-
mission was to present musical performances and mu-
ity and natural gas markets, but—commensurate with its
sical instruments for educational purposes, to arouse
weight in society and operating as a responsible Group—
children’s interest in learning classical music and to
has been a priority sponsor for decades of the creation
strengthen their love for music.
of universal and national cultural values, initiatives and
famous young and renowned Hungarian performers
as sports that also play an important role in the promotion
and world-class performances for years.The full house
of healthy lifestyles. Similarly to most large companies in
concerts of the LGT and Man Doki SoulMates bands
the world, the MVM Group believes that economic devel-
in February and the concerts of Zorán and Demjén,
opment can also be assessed today in the development
prominent singers for decades, and the Hooligans
of culture, the social net, and the educational and profes-
band which has been steadily popular also supported
sional culture in Hungary, as well as at the level of develop-
that the MVM Group recognised quality performances
ment of healthy lifestyles and sports culture.
commanding the interest of many.
Without all of these factors, it is inconceivable to produce
The Paks Nuclear Power Plant has been the main
sustainable development and good economic results and
sponsor of the leading Hungarian jazz and blues festi-
to keep the highly qualified young generation for the Hun-
val, Gastroblues, and the ‘Flower of Fire’ living history
garian economy.
dance ensemble of Paks for two decades. The company participated in the creation of the grandiose Havasi
In the spirit of the foregoing, the MVM Group has been
Symphonic performances as a priority sponsor and of
consistently focusing its sponsorship policy on the follow-
the big concert of the Csík Orchestra as a committed
ing areas since 2011:
sponsor of world music and Hungarian folk music.
»»
Support of universal and domestic cultural values,
The MVM Group lays great emphasis on reaching those
including musical and fine arts as priorities: The
young people among the public who consciously make
MVM Group considers it especially important to
choices in their brand and economic decisions, who
support those who enrich the country with their
prefer, among other things, Ship A38 as their most
knowledge and talent. With the globalisation of culture,
favourite place of amusement, which won the title of
our young artists may succeed anywhere in the world,
‘The Best Club in the World’ in the Lonely Planet’s vot-
but MVM would also like to contribute to ensuring that
ing in 2012 and ‘The Best Nightclub in the World’ in
talents receive the greatest recognitions in Hungary.
2013.In addition to organising the jointly established
A38-MVM Light Workshop and the A38-MVM Light
Painting programme series, the company also participated in the 10th birthday campaign of Ship A38.
MVM GROUP ANNUAL REPORT 2013
In the area of light music, MVM has been sponsoring
society, the development of science and education, as well
45
programmes aimed at the promotion of knowledge-based
6 | CORPORATE SOCIAL RESPONSIBILITY
Its corporate social responsibility activities appear as a
The sponsorship of the Museum+ programme of the
the priority main sponsor of the Audi ETO Women’s
Museum of Fine Arts has been one of the most impor-
Handball Club of Győr, whereby it is the most impor-
tant cultural tasks of MVM for years. In 2013, the pri-
tant sponsor of this branch of sport. MVM also pays
ority sponsorship of the Caravaggio exhibition placed
special attention to recognising the achievements of
the recognition of fine arts by MVM in a new dimen-
the disabled also in the area of sports sponsorship:
sion.
Our company is a sponsor of the event, gives out
special prizes in disabled horse riding events at the
National Gallop, and has been helping the work and
the Palace of Arts, which meant the sponsorship of,
preparation of the Special Olympic Team from the
in addition to a Man Doki SoulMates concert, the per-
outset. The Group helped the work of the Hungarian
formances entitled ‘Women on the Horizon’ and “Old
Hikers Association at the intersection of the areas of
Music’. With this, it began cooperating with another
sport and nature conservation. In 2013, MVM Partner
key cultural institution and helped put on stage unpar-
was also the main sponsor of the Ice Hockey World
alleled musical performances.
Championship Division I held in Budapest as well as
the deservedly popular Tennis Classics sports event
In addition to all this, MVM is also the main sponsor of
and the WTCC competition held in Hungary, and also
the Anna Ball, which has over a century of traditions
continued its cooperation with the Hungarian Boxing
and has become an integral part of Hungarian culture
Association. The MVM Paks Nuclear Power Plant’s own
and social life.
sports club, the ASE, has been producing some great
results in basketball, kayak and canoe and judo for
»»
In the area of the promotion of knowledge-based
years.
society, the primary goal is to support education,
science and, in particular, the coming generation:
»»
Charitable activities:
also pays special attention to supporting education.
of MVM to support the distressed, the defenceless and
In addition to establishing the MVM Energy National
the victims of natural disasters. It organised a Rally
Award, the company is a priority sponsor of the
Day also in 2013 for small children with disabilities,
University of Debrecen, the University of Óbuda, the
sick ones in need of prolonged hospitalisation and dis-
Széchenyi István University, the University of Western
advantaged ones, whereby the MVM Group spent its
Hungary and the Budapest University of Technology
funds intended for giving out gifts at the end of the
and Economics. In addition, the company helps the
year for charitable purposes. Thus, the MVM Group
organisation of a number of university and other
was one of the priority sponsors of the Down Foun-
domestic and international professional programmes,
dation and the Hungarian Association of the Interna-
while it is also one of the most important patrons
tional Children’s Safety Service and its charity events;
of the Museum of the Hungarian Oil Gas Industry
in addition, it has been sponsoring the All Children
through MVM Partner. MVM Paks Nuclear Power Plant
Should Eat Their Fill Foundation for years. It is already
is the most important sponsor of several research
a tradition that as part of the Rally Day, MVM Part-
institutes of the Hungarian Academy of Sciences, and
ner sponsors the Hungarian Ecumenical Aid Organi-
is also the main sponsor of the Foundation operating
sation and four paediatric clinics treating the highest
the Power Engineering Vocational Secondary School
number of small patients in the capital: the Heim Pál
and Dormitory in Paks. In addition, it helps the
Children’s Hospital, the MRE Bethesda Children’s Hos-
implementation of the professional and scientific
pital and Paediatric Clinics Nos. 1 and 2 of Semmelweis
programmes of the University of Pécs in a number of
University. Valuable donations were also given to the
areas.
Daniló Sports Club, the Horse Therapy for the Disabled Association and the Óbuda Family Advisory and
»»
Sponsorship of competitive and recreational sports,
Children Protection Centre.
with events of national importance as a priority:
MVM has been a key sponsor of sporting life for years
»»
Environmental protection and sustainable develop-
in order to increase the commitment of society to a
ment:
sports- and health-aware lifestyle. MVM has been the
The environmental protection responsibility assumed
name-giving sponsor of the MVM Paks Football Club
by the Hungarian power companies is especially im-
for several years and the MKB-MVM Veszprém Men’s
portant not only from the point of view of society, but
Handball Club since the autumn of 2013 as well as
also of the economy. In the 21st century, it is natural
MVM GROUP ANNUAL REPORT 2013
As a key player in the industry, it is a moral obligation
46
As an innovative, knowledge-intensive Group, MVM
6 | CORPORATE SOCIAL RESPONSIBILITY
In 2013, the company became a strategic partner of
lished to achieve these goals, MVM provides assistance
mony with its environment and environmental values,
to Hungarians living outside Hungary’s borders and
thereby also ensuring sustainable development. For
the organisations uniting them. The relevant activities
this very reason, our company organised the race of
of our company well reflect its commitment to nation-
alternative powered vehicles, the MVM Energy Race,
al causes and its efforts to embrace Hungarians living
in 2013 for the third time; its main objective was to
outside Hungary’s borders, since helping the causes
promote carbon dioxide emission-free transport and
of all Hungarians can well fit in with the mission state-
is considered unique of its kind in Europe. MVM has a
ment of the Group. Our mission is to become a key
prominent role in increasing the proportion of renew-
Group also at the regional level. Therefore, in addition
able energy sources, reducing the energy dependence
to the foregoing, their sponsorship is also justified by
of Hungary and improving energy efficiency. Under its
the growth of the Group in the region, because the
sponsorship programme, MVM have donated domes-
name of MVM may become known in the region and in
tically developed and manufactured environmentally
the countries representing target markets for trade as
friendly solar energy conversion devices working on
one that can be associated with positive causes. The
the principle of solar parabola to more than ten social,
company has been sponsoring the implementation of
health care and education institutions by now, e.g. to
the Bálványos Summer Free University and Students’
the Integrated Social Institution of Komárom-Eszter-
Camp in Romania, the organisation of the Csángó Ball
gom County in 2013.
and the Rákóczi Association for several years. It is also
especially important for the MVM Paks Nuclear Power
»»
Sponsorship of the preservation of national values
Plant to support those living in its immediate vicinity.
in the region:
Therefore, it established the Energy for Our Future Re-
One of the key directions of the sponsorship is the
gional Development Foundation in 2012, which aimed
preservation of cultural values and the nurturing of
to develop a total of 41 towns and villages located in
our national heritage both in Hungary and in areas
the Paks and Kalocsa sub-regions and in the northern
beyond its borders. As part of the cooperation estab-
part of the Szekszárd sub-region.
6 | CORPORATE SOCIAL RESPONSIBILITY
for a large company to perform its operations in har-
47
MVM GROUP ANNUAL REPORT 2013
7
HUMAN RESOURCES POLICY
48
MVM GROUP ANNUAL REPORT 2013
Among operational support processes, human resources
management has a prominent role; accordingly, the HR
function was promoted to the management level of Deputy
CEO at MVM Ltd. to support the new Business Strategy of
the MVM Group.
The tasks relating to group-level HR coordination are carried out by the Department for Human Strategy and Methodology under the direction of the Deputy CEO for Human
Resources.
HR administration services are provided to the Group by
MVM KONTÓ Ltd. in a uniform SAP HCM system, and a data
warehouse and a position-based HR planning application
are operated in connection with it.
The group-level regulations applicable to uniform HR operation (decentralised time punching, recruitment and selection, remuneration of executives, performance evaluation, planning and implementation of trainings, HR planning
2009
2010
2011
2012
2013
Year-end headcount
persons
8,039
7,867
7,664
7,634
8,046
with an indefinite-term employment
contract
with a definite-term employment
contract
persons
7,581
7,447
7,335
7,354
7,633
persons
458
420
329
280
413
full-time
persons
7,929
7,758
7,564
7,535
7,958
part-time
persons
110
109
100
99
88
Number of leased/borrowed employees
persons
18
4
9
153
16
Number of outsourced employees
persons
3
7
0
0
0
MVM GROUP ANNUAL REPORT 2013
Staff size (persons)
The breakdown of the employees of the MVM Group by age is shown by the following diagram:
3000
2 564
2 457
2500
1 802
2000
1500
960
1000
500
214
49
0
18-25 years
26-35 years
36-45 years
46-55 years
56-62 years
>62 years
Age group
The MVM Group pays special attention to its employees’
training and in-service training, accident-free work, the
development of social and welfare benefits, and actively
supports its employees’ recreation and sports activities.
The MVM Group aims at fair cooperation with the emp-
49
Unit
7 | HUMAN RESOURCES POLICY
MVM Group
and controlling, uniform employment contract and information brochure) were adopted to the individual companies within the Group.
Group-level collective bargaining is in place through the
operation of the Reconciliation and Consultative Forum. A
wage and social agreement was concluded at the group
level.
The member companies of the MVM Group described in
this report had 8,064 employees at the end of 2013, typically (over 94%) full-time employees with an indefiniteterm employment contract. The proportion of women was
24.5%.
This represents an increase of more than 400 year-onyear (7,634 persons), representing a trend contrary to
the continuous decrease in previous years, partly due to
the acquisition of the interests held by E.ON in the gas industry.
loyee advocacy organizations (trade unions) in order to
maintain peace in labour relations and to ensure sustainable growth. 93.13% of the employees are covered by a
collective agreement.
50
MAIN FIGURES OF THE COMPANIES
BELONGING TO THE GROUP
MVM GROUP ANNUAL REPORT 2013
8
Name
Activities
Head office
Web
strategic management, asset management
H-1031 Budapest, Szentendrei út 207209., Hungary
www.mvm.hu
natural gas trade
H-1051 Budapest, Széchenyi István tér
7-8., Hungary
www.magyarfoldgazkereskedo.hu
electricity trade
H-1031 Budapest, Szentendrei út 207209., Hungary
www.mvmp.hu
MVM-ADWEST Marketing und Handels GmbH
electricity trade
Wienerbergstr. 7, A-1100 Vienna,
Austria
-
MVM Trade Poland Sp. z.o.o.
electricity trade
ul. Wybrzeże Kościuszkowskie 43/4,
P-00-347 Warsaw, Poland
-
MVM Partner d.o.o.
electricity trade
J.F. Kennedy 6B, HR-10000 Zagreb,
Croatia
-
MVM Partner Bucharest S.r.l.
electricity trade
Stirbei Voda Street No. 26-28, Union
International Center II, 5th Floor,
Office No. 20, District 1, Bucharest,
Romania
-
MVM Partner Energija, druzba za energijo d.o.o.
electricity trade
Slovenska Cesta 56, SLO-1000
Ljubljana, Slovenia
MVM Partner Serbia d.o.o. Beograd
electricity trade
Nehrouva Str. No. 132/13, Belgrade,
Serbia
-
operation of an electronic electricity trading and
information interface
H-1031 Budapest, Szentendrei út 207209., Hungary
www.powerforum.hu
electricity generation from nuclear fuel and heat
generation
H-7031 Paks, P.O. Box: 71,
topographical lot No.: 8803/10,
Hungary
www.npp.hu
electricity and heat generation, electricity trade, coal
mining
H-2841 Oroszlány, Outer Areas,
topographical lot No. 0718/5, Hungary
www.vert.hu
ownership of the Ajka gas turbine peaking power plant
H-8400 Ajka, Factory Site,
topographical lot No. 1961/1, Hungary
-
heat generation (heat supply to Miskolc) with
electricity cogeneration
H-3531 Miskolc, Tatár u. 29/b, Hungary
-
heat generation (heat supply to the North Buda
Region) with electricity cogeneration
H-1037 Budapest, Kunigunda útja 49.,
Hungary
-
electricity generation from renewable energy source
H-1031 Budapest, Szentendrei út 207209., Hungary
www.hungarowind.hu
operation of hydrocarbon-fired quick-start back-up
gas turbine power plants owned by MVM Ltd.
H-2040 Budaörs, Kinizsi u. 26.,
Hungary
www.gter.hu
preparation of the establishment of new nuclear
power plant units at the Paks site
H-7030 Paks, Gagarin utca 1., 3rd
Floor No. 302/B, Hungary
-
electricity generation (currently suspended)
H-2800 Tatabánya, Környei út 38.,
Hungary
-
MVM OVIT National Power Line Company Ltd.
maintenance and establishment of the power lines of
the transmission network; maintenance, operation and
monitoring of the telecommunications network
H-1158 Budapest, Körvasút sor 105.,
Hungary
www.ovit.hu
MVM ERBE Power Engineering and Consulting
Ltd.
power engineering services, design of power
engineering facilities and project management
H-1117 Budapest, Budafoki út. 95.,
Hungary 95.
www.erbe.hu
provision of mostly services associated with the
operation of facilities on the premises of Paks Nuclear
Power Plant Ltd.
H-7030 Paks, Gesztenyés u. 2.,
Hungary
www.atomix.hu
wholesale and retail trade of electrical fittings and
cables
H-1158 Budapest, Késmárk u. 14.,
Hungary
www.energo-merkur.hu
provision of telecommunications services
H-1134 Budapest, Róbert Károly Körút
59., Hungary
www.mvmnet.hu
provision of comprehensive information technology
services to the companies of the Group
H-7030 Paks, Dózsa Gy. utca 30-32.,
Hungary
-
COMPANIES INCLUDED IN FULL CONSOLIDATION
Holding Centre
MVM Hungarian Electricity Ltd.
Hungarian Gas Trade Ltd.
MVM Partner Energy Trading Ltd.
Powerforum Ltd.
Power and Heat Generation and Technical Services
Power and Heat Generation
MVM Paks Nuclear Power Plant Ltd.
Vértes Power Plant Ltd.
MVM MIFŰ Miskolc Central Heating Plant Ltd.
MVM Hungarowind Wind Power Plant Operating
Ltd.
MVM GTER Gas Turbine Power Plant Ltd.
MVM Paks II Nuclear Power Plant Development
Ltd.
Bánhida Power Plant Ltd.
Technical Services
ATOMIX Trading and Service Ltd.
ENERGO-MERKUR Electricity Trading and
Service Ltd.
Telecommunications and IT Services
MVM NET Telecommunications Provider Ltd.
MVMI Information Technologies Service Centre
Ltd.
MVM GROUP ANNUAL REPORT 2013
MVM North Buda Cogeneration Power Plant
Ltd.
51
MVM BVMT Bakony Power Generation Co. Ltd.
8 | MAIN FIGURES OF THE COMPANIES BELONGING TO THE GROUP
Trade and Supply Chain Management
Name
Activities
Head office
Web
direction of the operation of the electricity system,
operation and development of the transmission
network
H-1031 Budapest, Anikó utca 4.,
Hungary
www.mavir.hu
construction of a natural gas interconnection pipeline
between Hungary and Slovakia
H-1031 Budapest, Záhony u. 7.,
Graphisoft Park, Building B, 2nd Floor
www.gaztranzit.hu
preparation of the Smart Grid Pilot Project
H-1031 Budapest, Anikó utca 4.,
Hungary
-
stockpiling and storage of natural gas
H-1051 Budapest, Széchenyi István tér
7-8., Hungary
www.magyarfoldgaztarolo.hu
HUPX Hungarian Power Exchange Company
Ltd.
operation of an electricity exchange
H-1031 Budapest, Záhony utca 7.,
Hungary
www.hupx.hu
CEEGEX Central Eastern European Gas
Exchange Ltd.
operation of a natural gas exchange
H-1031 Budapest, Záhony utca 7.,
Hungary
www.ceegex.hu
HUPX Derivative Ltd.
operation of an electricity exchange
(has not started its operation yet)
H-1031 Budapest, Záhony utca 7.,
Hungary
-
provision of financial and accounting services to the
companies of the Group
H-7030 Paks, Gagarin u. 1., Hungary
-
electrical services tasks, operation, guarding and
maintenance of facilities
H-2040 Budaörs, Kinizsi u. 26.,
Hungary
www.villkesz.hu
operation of the Central Office Building
H-1031 Budapest, Szentendrei út 207209., Hungary
-
operation of a hotel in Siófok
H-8600 Siófok, Battyhány u. 24.,
Hungary
www.hotelvertes.hu
operation of a hotel in Balatongyörök
H-8313 Balatongyörök, Petőfi S. u. 5.,
Hungary
www.hotelpanorama.hu
operation of the tourist and food establishment
‘Pansion ALBATROS’ (Rovinj, Croatia)
Valbruna II. Jug, HR-52210-Rovinj,
Croatia
-
corrosion protection of the components of power
transmission lines
H-1158 Budapest, Késmárk u. 24-28.,
Hungary
www.eks.hu
hydrocarbon-based electricity generation
H-2440 Százhalombatta, Erőmű u. 2.,
Hungary
https://www.gdfsuez-energia.
hu/tarsasagunkrol/gdf-suezmagyarorszagon/dunamentieromu
essentially electricity generation and associated coal
mining activities
H-3271 Visonta, Erőmű utca 11.,
Hungary
www.mert.hu
provision of organised holidays
H-7815 Harkány, Zsigmondy sétány
1., Hungary
www.harkanykorhaz.hu
financial consulting Bauernmarkt 2, A-1010 Vienna, Austria
-
human resources, social services
H-7030 Paks, Dózsa Gy. u. 95., No.
I/110, Hungary
-
construction of a liquefied gas transmission system at
the Black Sea
141 Calea Plevnei, Block 1, Entrance A,
Apt. 1, Sector 6, Bucharest, Romania
www.agrilng.com
provision of telecommunications services
H-1138 Budapest, Dunavirág utca 2-6.,
Hungary
www.mpvi.hu
construction of an international gas pipeline section
in Hungary
H-1065 Budapest, Nagymező utca 4648., 1st Floor, Hungary
-
Transmission, System Operation, Natural Gas Storage and Energy Exchange Operation
Transmission, Gas Storage and
System Operation
MAVIR Hungarian Transmission System
Operator Company Ltd.
Central Smart Grid Operator Ltd.
Hungarian Gas Storage Ltd.
Energy Exchange Operation
General Services
Administrative Services
MVM KONTÓ Finance and Accounting Service
Centre Ltd.
Facility Maintenance
MVM Villkesz Ltd.
Római Office Building Ltd.
Hotel Vértes Trading and Service Ltd.
MVM Hotel Panorama Ltd.
52
NIKER d.o.o. Trading Ltd.
8 | MAIN FIGURES OF THE COMPANIES BELONGING TO THE GROUP
Hungarian Gas Transit Ltd.*
Companies included in consolidation as associated companies
EKS Service Ltd.
ASSOCIATED COMPANIES:
Dunamenti Power Plant Ltd.
Mátra Power Plant Ltd.
Zsigmondy Vilmos Harkány Spa and
Balneological Hospital Not-for-profit Company
MM Energy Corporate Finance Beratungs GmbH
Southern Transdanubia Human Resources Notfor-profit Ltd.
AGRI Lng
MPVI Mobile Ltd.
South Stream Hungary Ltd.
MVM GROUP ANNUAL REPORT 2013
JOINT MANAGEMENT COMPANY:
Name
Activities
Head office
Web
SUBSIDIARIES INCLUDED IN CONSOLIDATION AS ASSOCIATED COMPANIES:
establishment of the Visonta lignite-fired power plant
H-3271 Visonta, Erőmű utca 11.,
Hungary
-
Kárpát Energo Trading and Service Ltd. (in
liquidation)
establishment of the Vásárosnamény Combined Cycle
Power Plant
H-1031 Budapest, Szentendrei út 207209., Hungary
-
maintenance and refurbishment of substation
equipment in Ukraine
H-1031 Budapest, Szentendrei út 207209., Hungary
-
no operative activity is performed at present
H-1126 Budapest, Béla király út 30/c,
Hungary
-
support and advocacy of biomass-fired power plants
H-7630 Pécs, Edison u.1., Hungary
www.biomasszaeromuvek.hu
editing and distribution of magazines and publications
relating to the energy industry
H-1081 Budapest, Köztársaság tér 7.,
9th Floor, Hungary. 914.
www.energetikaikiado.hu
operation of a hotel in Hévíz
H-8380 Hévíz, Attila u. 1., Hungary
www.carbona.hu
provision of district heating supply and hot water
H-2840 Oroszlány, Bánki Donát u. 2.,
Hungary
www.oszrt.hu
elaboration of specifications, guidelines and standards
for welding technology and material testing;
organisation of qualification examinations and
obtaining of ratings and accreditations
H-1148 Budapest, Fogarasi út 10-14.,
Hungary
www.mhte.hu
Nuclear Insurance Risk Association
Third Floor, St. George's Court, Upper
Church Street, Douglas, Isle of Man,
IM 1 1EE
www.nira.darolite.be
North Hungarian Electricity Supply plc
universal electricity supply
H-3525 Miskolc, Dózsa Gy. u. 13.,
Hungary
www.emasz.hu
Budapest Electricity Works plc
universal electricity supply
H-1132 Budapest, Váci út 72-74.,
Hungary
www.elmu.hu
organisation of auctions for cross border capacity
Gute Anger 15, D-85356 Freising,
Germany
www.central-ao.com
natural gas trade
H-4200 Hajdúszoboszló, Rákóczi u.
184., Hungary
www.tigaz.hu
MVM Investment Ukraine Ltd.
ER-EF Power Plant Cooperation Development
Ltd. (in voluntary liquidation)
OTHER INTERESTS
Association of Biomass-fired Power Plants
Energy Industry Publisher Not-for-profit
Company
HOTEL CARBONA SPA HOTEL Ltd.
Oroszlány Service Ltd.
Hungarian Association for Welding Technology
and Material Testing
Duncan M Donald Company Secretary NIRA
LIMITED
CAO Central Allocation Office GmbH
TIGÁZ Trans-Tisza Region Gas Distribution Ltd.
* a joint management member company included in full consolidation in proportion to the capital share of the parent company
8 | MAIN FIGURES OF THE COMPANIES BELONGING TO THE GROUP
Mátra Power Generation Co. Ltd.
53
MVM GROUP ANNUAL REPORT 2013