Electricity operator in Singapore JV

By Phil Boeyen, ShareChat Business News Editor

Monday 9th July 2001

New Zealand company M-co, which operates the local wholesale electricity market, is taking its expertise to Asia via a joint venture with a Singapore regulator.

M-co has taken a 49% stake in Singapore's Energy Market Company to implement and operate that country's new wholesale electricity market.

Singapore's state-owned regulator, the Energy Market Authority, will retain 51% of the energy company.

M-co's chief executive, Philip Bradley, claims the deal is a world first and is a major expansion for the company, which will now operate in New Zealand, Australia and Singapore and has plans to expand further.

"The Energy Market Company provides a great opportunity for an international exchange of knowledge. The joint venture will enable a cross-fertilization of skills.

"We believe Singapore will benefit from M-co's depth of expertise, and then New Zealand will profit from M-co bringing this experience to bear in our ongoing relationship with the New Zealand electricity industry."

Mr Bradley says the design of the Singapore market is similar in key aspects to the New Zealand wholesale electricity market , and the deal is recognition that the New Zealand market is held in high regard internationally.

M-co was formed in 1993 to develop, implement and operate New Zealand's wholesale market for trading electricity. It is owned by South African financial services company FirstRand.

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