Electricity companies capital structure determinants in Malaysia / Charles Linang Guteng

Electricity Company can be define as an entity recognized by governmental law to installs, operates, and maintains electric supply. Stewart Martin Cooper in his study called “Stakeholder communication and the Internet in UK Electricity Companies” has separated the electricity industry in England and Wales into three parts name as generating capacities, transmission network and supply and distribution. In Malaysia, the existence of the entity named as the Independent Power Producer or IPP who are focusing their business activities in generating electricity and sale the generated unit to the government controlled utility company. IPPs may be privately-held facilities, cooperatives such as rural solar or wind energy producers, and non-energy industrial concerns capable of feeding excess energy into the system. The electricity transmission network in UK is owned by the different public listed company. Different scenario happens in Malaysia where the National Grid management and the distribution of the generated electricity unit are also controlled by the government. In general, the electricity companies needs to purchase assets is either to replace the obsolete assets or because of the new necessity for them to accomplish their operation