Hungary's government announced yesterday that it will dismiss the head of national utility monopoly Magyar Villamos Művek Zrt (MVM) and move to restructure the electricity sector to create real competition.

Finance Minister János Veres has been appointed to "take immediate action" to end MVM's monopolistic practices and reshuffle the state-owned electricity company in order to facilitate free competition in the sector.

Although Hungary opened up its retail electricity market in line with EU rules this January, MVM continues to hold a monopoly in the wholesale segment, which has stunted competition.

The government said the measure is also designed to prepare MVM's IPO on the Budapest Stock Exchange as part of the government's New Ownership Program, in which Hungarians will be offered shares in a handful of state-controlled companies at preferential prices.

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