Amsterdam Power Exchange chief executive Bert van Ouden said in a statement that the acquisition will help boost synergies between the Netherlands and UK markets, as well as giving the Dutch exchange increased branding capabilities. Both exchanges had previously been known as APX.
“The clarity of the trademark issue is good for both companies and the market,” said van Ouden. “And the UK market has a lot of potential. The international approach means we can provide our participants with a wider range of products and services.
“We will continue to support APX UK’s existing services while also looking to introduce new services in response to the needs in the market,” he added.
The Amsterdam Power Exchange operates an electronic platform for day-ahead power trading in the Dutch market. The exchange says it has over 40 participants trading an average of 38,600 megawatt hours (MWh), or about 15% of net power consumption in the country, on a daily basis. But the exchange is facing pressure from the much larger German-based European Energy Exchange (EEX), which aims to become the leading European-wide exchange. EEX traded a total volume of 150 terawatt hours (TWh) in 2002, compared to APX’s 14.12 TWh
APX UK has operated a spot market for power since the introduction of the new electricity trading arrangements in March 2001, and currently has 25 participants. Parent company Automated Power Exchange, which is based in Santa Clara, California, says it now intends to focus on its US business.
“This transaction will allow Automated Power Exchange to focus on its North American core business of providing scheduling and settlement service for power and natural gas,” said chief executive John Yurkanin.