Among Eastern European nations, Hungary has adopted the most ambitious privatization program for its electrical utility industry. In 1991, the state-owned electricity company was converted to a corporation (MVR). MVR became a holding company for six regional power distribution companies {see Endnote 230}. Subsequently, Hungary sold the six power distribution companies and all generation assets, except for nuclear power and the transmission grid {see Endnote 231}. Several major foreign companies bid for ownership of these companies, although Powerfin, a unit of the Belgium company Tractebel, a consortium of German firms, and Electricity de France were the winning bidders {see Endnote 232}. PowerGen was the first company to purchase an independent power producer in Hungary and Tenneco is currently negotiating an independent power producer purchase {see Endnote 233}.

Poland has disaggregated its power sector and now allows competition among independent generation companies. However, the power generation market is still subject to a variety of regulatory requirements {see Endnote 234}. Also, independent transmission and distribution companies have been created that operate separately from generating companies. Privatization of electricity generation and distribution is also being considered, although the government plans to maintain 51-percent ownership of the transmission grid. Thus far, Electricity de France has invested in a 450-megawatt coal-fired plant in Krakow, Poland {see Endnote 235}.

Russia began a decentralization program in 1993 that will allow 75 percent of its generating capacity to be under the responsibility of the regional power companies and their regulatory bodies. The Czech Republic is privatizing its national generation and transmission company, and plans have been made to privatize regional distribution companies.