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Enron casts shadow on push for reforms

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Asian governments daunted by the demise of United States energy trader Enron have been urged to push ahead with power-sector reform to help their economies.

Countries such as Japan and Singapore have delayed reforming electricity markets while they evaluate if Enron will have any effects on the process.

However, lawyer James Douglass, head of the newly formed Asian energy group at Linklaters & Alliance, said governments should return to the reform trail.

Regional deregulation could see US$300 billion worth of power assets privatised by 2005, he said.

'Enron is definitely on everyone's mind. I think it hurts confidence more than anything,' Mr Douglass said.

'Enron's case shows the risks of buying power assets in an unpredictable and often volatile wholesale market. It also shows the need for stronger accounting standards and corporate governance.'

Enron filed for bankruptcy protection, the biggest of its kind in US history, in December last year under the weight of US$16.8 billion debts.

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