By Veronika Gulyas

BUDAPEST--The Hungarian government is preparing the ground for industrial energy price cuts, and a non-profit utility company, the country's development minister said Tuesday.

The cabinet will continue its energy policy, Zsuzsa Nemeth said after the Fidesz party gained another four-year term at the Sunday general elections. This policy involves the diversification of the energy mix, supply security, lower energy prices and continuing acquisitions of strategic energy companies.

The minister said the law is underway for setting up the planned non-profit utility firm and the legal background is planned to be set up by the end of this year. Ms. Nemeth didn't say outright, however, whether MVM or any of its subsidiaries would eventually become the actual non-profit utility.

"MVM will also play an important role in the non-profit utility firm," Ms. Nemeth said, adding that this company already owns "those assets that are necessary for setting up this utility firm."

The state-owned power firm MVM will be the key actor in this energy policy, integrating energy firms so far acquired from international players last year and this year, and planning further buys in the medium run.

MVM plans to complete the full acquisition of natural gas service company Fogaz Zrt, by buying a minority stake from German energy group RWE AG (RWE.XE) and the majority stake from capital city Budapest. It also plans to close the acquisition of Germany's E.ON AG's (EOAN.XE) Hungarian assets E.ON Energiaszolgaltato Kft., E.ON Kozep-dunantuli Gazhalozati Zrt., E.ON Del-dunantuli Gazhalozati Zrt. and E.ON Ugyfelszolgalati Kft. Plans also include closing the deal on buying Panrusgaz, by acquiring a 50% stake from E.ON Ruhrgas AG.

In the telecommunications sector, MVM's subsidiary MVM Net, which operates the national telecommunication backbone network and owns the Mavir optical cable network, will also participate in CDMA services, and will set up a nationwide wireless data service. CDMA, or Code Division Multiple Access is the general system used for 3G services.

MVM isn't planning to compete with the existing mobile telecommunication companies in Hungary, MVM Chief Executive Officer Csaba Baji said. The development will prepare a transmission system for smart metering, which is measuring the consumption of electric energy through the mobile network.

Write to Veronika Gulyas at veronika.gulyas@wsj.com