Simply Energy well positioned for new futures
Simply Energy well positioned for new futures market as
the only independent with Designated Dealers License
Wellington, 3 June 2010 – Simply Energy welcomes today’s announcement that EnergyHedge have signed an agreement with ASX to develop the New Zealand electricity futures and options market and look forward to gaining more detailed information.
Simply Energy Director, Murray Dyer, said that as a specialist generation and retail services company we look forward to expanding the services we can offer to our clients. We are most pleased that we now appear to have some certainty and firm timing for this market as this will allow us to get on and develop our business and services in this area.
Mr Dyer advised that Simply Energy is the only independent electricity services business with a Designated Dealers License under the Securities Markets Act in place, this license is specific to electricity futures contracts, therefore we are well placed to capitalise on this market development by further developing the structured supply solutions we are providing to our growing client base.
“We currently have six generation assets under management along with an exciting pipeline of independently owned generation projects, therefore an accessible liquid futures market will provide us with greater options to lock in forward prices. This is not a golden bullet but will assist in the commercialization of more independent generation projects enhancing security of supply and a more competitive electricity market.
“We also have a number of clients using our white label retail services, to date we have aggregated independent generation projects to assist them in managing their wholesale price risk, however the development of a liquid futures market will complement this service and the growth potential for Simply Energy.”
Mr Dyer advised the key to this is competitive clearing and execution services with existing ASX clearing member participants and once we have more detail around the market look forward to entering into commercial discussions.