APX Group and EPEX SPOT integrate their businesses

Integration to foster creation of pan-European power market

Amsterdam / Paris, 17 April 2015.

The Power Exchanges EPEX SPOT and APX Group, including Belpex, intend to integrate their businesses in order to form a Power Exchange for Central Western Europe (CWE) and the UK. Both companies have signed respective agreements.

“It is not only a logical step in the course of the history of both APX Group and EPEX SPOT. This is a leap forward for power trading in CWE and facilitates the creation of the European power market”, says Jean-François Conil-Lacoste, Chairman of the Management Board of EPEX SPOT.

Both companies have been working together since many years in the framework of market coupling. Market coupling started in 2006 with the successful Trilateral Market Coupling, integrating the French, Belgium and Dutch day-ahead markets. A major step was achieved in 2010, with the launch of market coupling in Central Western Europe, covering Benelux, France and Germany/Austria. In 2014, Price Coupling was extended to North Western Europe (covering CWE, Great Britain, the Nordics and the Baltics) and South Western Europe, coupling the Iberian Peninsula. The latest step in European market integration took place in February 2015, when Italy and Slovenia joined Price Coupling. Switzerland got technically ready for market coupling in the past months.

The integration of EPEX SPOT and APX Group will further reduce barriers in power trading in the CWE and UK region. Market participants will benefit from harmonised trading systems, one single rulebook and one admission process for the entire region, therefore reducing trading costs and lowering entry barriers for new participants. Moreover, they will have access to a wider range of products and benefit from best-of-both standards and reliable customer support. Overall, the integration will lead to a more effective governance and further facilitate the creation of a single European power market fully in line with the objectives of the European electricity regulatory framework.

After the integration of the businesses of APX Group and EPEX SPOT, Elia, Rte and TenneT – together through HGRT, the holding of power Transmission System Operators – will own 49% of the new EPEX SPOT capital. The three TSOs consider this operation as a crucial step towards the creation of the European electricity market.

“The creation of a Power Exchange for Central Western Europe and the UK is first and foremost for the benefit of the market participants. It will increase liquidity and render the CWE power market even more attractive”, says René Kerkmeester, CEO of APX Group.

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