The reorganisation of the SPP Group was completed today

4. 6. 2014

As of today, Slovenský plynárenský priemysel, a.s., (SPP) is under 100% control of the National Property Fund of the Slovak Republic. Until now, Energetický a průmyslový holding, a.s., (EPH) has held 49% of the shares in SPP and exercised management control. EPH continues to control the key companies of the original group, i.e., Eustream (international gas transmission), SPP Distribúcia (natural gas distribution in Slovakia), and gas storage companies in Slovakia and the Czech Republic (Nafta, Pozagas, and SPP Storage) through SPP Infrastructure (SPP-I). Thus, SPP-I is the new parent company of the group; the Slovak state holds 51% in SPP-I, while EPH holds 49% associated with management control. Commercial activities, in particular natural gas and electricity sales to household, business and industrial customers have remained in SPP.

The State has therefore gained full control over the most important energy supplier and, through it, the influence on natural gas pricing in Slovakia. “Regulated prices of natural gas for households in Slovakia have not been covering the costs for a long time, while the preservation of low prices for the residential segment is a political priority for the current Slovak government, which EPH respects. This being the case, the government’s full control over the energy trader – and therefore also control over SPP – is a logical solution that eliminates the risk of disputes arising between the two shareholders,” said Daniel Křetínský, EPH Chairman, adding: “We are delivering SPP into the hands of the State with a good feeling and in a much better condition than we accepted it from the former shareholders. We have successfully renegotiated the parameters of the contract with Gazprom, slashed operating costs, and enhanced the company’s strategic position in the market.”

Together with SPP, a.s., the Slovak Republic has also gained control over some other subsidiary companies, including SPP CZ, a trading company operating in the Czech Republic, and SPP CNG, a company supplying compressed natural gas and operating a network of CNG refuelling stations, and also SPP’s extensive real estate. The long-term gas sales agreement with Gazprom Export has also remained under SPP’s control.