SGX acquires all of Energy Market Company

SINGAPORE - Singapore Exchange (SGX) now owns Energy Market Company (EMC), it announced on Wednesday.

It bought the remaining 51 per cent stake of the Singapore-based EMC for $23 million, from the Energy Market Authority.

EMC operates the National Electricity Market of Singapore.

The change in EMC's shareholding will have no impact on its operation of the wholesale electricity market, said SGX.

EMC will be able to tap on the exchange "to provide better services to market participants at more competitive rates".

The local bourse noted in a statement that wholesale electricity players will benefit from two per cent savings in market fees over the next three years.

SGX, which operates securities, commodities and derivatives markets, can also tap on EMC's platform for an electricity futures market, and power and gas products, for Singapore.

SGX chief executive Magnus Bocker said: "Asia's continued growth and rising consumption translate to strong power and gas demand. SGX is already a hub for the trading and risk management of commodities and financial derivatives. Together with EMC, we intend to become Asia's price discovery centre for power and gas."

SGX bought 49 per cent of EMC in August 2012.