The bank has been in the energy trading business for two years and is hoping to meet increased demand from customers who are looking to manage the risks associated with market-determined power prices.

Head of Westpac's Institutional Bank, Mr David Willis, said the addition of experienced Enron staff has delivered to its energy trading division "quantum growth potential". He added deregulation of energy markets is a worldwide development with Australia and New Zealand at the forefront of this.

"As a consequence, our customers face new risks to their business with varying prices for energy inputs," Mr Willis said.