Atel becomes a partner in a joint municipal services company in Italy

AEM Milano, ACEA Roma and AEM Torino municipal services have decided to enter into an exclusive arrangement with the Swiss electricity trading company Atel.

Italy's three largest municipal services, AEM Milano, ACEA Roma and AEM Torino, agreed a deal on 4 July 2000 with the Swiss electricity trading company Aare-Tessin Electricity Company Ltd, under which they set up a joint trading company. The aim of the new company is to sell electricity to authorised end-users in Italy and other European countries. The company will also operate in electricity trading, risk and portfolio management plus energy services.

The three municipal services, AEM Milano, ACEA Roma and AEM Torino, have more than 1.5 million customers in the electricity business sector with an annual consumption of 10 TWh, and the number of customers and electricity turnover is expected to double in the coming years. The four partners are seeking to gain more than 20% of the Italian electricity market through this arrangement. One further aim of the new trading company is to expand its own production in Italy by building new power stations as well as acquiring and repowering existing facilities as part of the unbundling of ENEL. The four partners are therefore interested in ENEL's Genco 1 or 2, with an output of 7,000 MW or 5,500 MW respectively, and will prepare appropriate offers. The new company is open to more joint cooperation programmes with other cities.

Atel today already covers 5% of electricity consumption in Italy. The Olten electricity trading company owns 5% of AEM Milano and 2% of ACEA Roma.

Aare-Tessin Ltd. for Electricity Corporate Communications