TenneT concentrates its interests in the APX power exchange (70.8%) and EPEX SPOT (9% via HGRT *) into EPEX SPOT. This will create a power exchange for the entire Central Western Europe (CWE) region and the United Kingdom. An agreement to this effect was reached between the shareholders of both exchanges (i.e. APX Group and EPEX SPOT) on 16 April 2015. The definitive closing date for the agreement is expected to be 4 May 2015. TenneT CEO Mel Kroon and TenneT COO Ben Voorhorst will be members of the Supervisory Board of EPEX SPOT.
TenneT currently holds 70.8% of the shares in APX Group, while Belgian TSO Elia holds the remaining 29.2%. By integrating APX Group and EPEX SPOT, TenneT will increase its stake in the pan-European electricity exchange EPEX SPOT via HGRT from 9% to 19.6%. Until now, the APX spot power exchange has been serving the Netherlands, Belgium and the UK with its activities, with EPEX SPOT doing so for Germany, France, Austria, and Switzerland.
TenneT CEO Mel Kroon on the merger: "With this strong, new combination, we are joining forces to serve all of Central Western Europe, including the UK. As a shareholder in both APX and EPEX SPOT, TenneT regards the integration of APX and EPEX SPOT as a logical step. This will allow us to work more effectively, in collaboration with Elia **) and RTE ***), on improvements to the market system, such as intraday electricity trading and flow-based market coupling. The merger is an important step towards further integration of the European electricity markets, which will eventually benefit energy consumers."
In addition to further market integration, the combination of the two power exchanges will also benefit market parties in other ways. Both exchanges will start deploying a single system, resulting in lower system costs as well as the possibility to use only one instead of two so-called 'rule books'.
Coupling of European electricity markets
APX and EPEX SPOT have been working for many years on, market coupling. The coupling of electricity markets started in 2006 with the Trilateral Market Coupling (TMC) process that linked the Dutch, Belgian and French day-ahead markets. The next major step was taken in 2010 when market coupling was realized between the Netherlands, Belgium, France, Germany and Austria (CWE Market Coupling). In 2014, the price coupling system was expanded to include Northwest and Southern Europe, adding the UK, the Scandinavian countries, the Baltic states, Spain and Portugal to the price coupling region. In February 2015, the Italian market was also added. Later this year, the so-called Flow-based Market Coupling (FMC) mechanism will be implemented in the CWE region. 
About TenneT
TenneT is a leading European Transmission System Operator (TSO) operating mainly in the Netherlands and Germany. With approximately 21,000 kilometres of high-voltage lines, we ensure a reliable and secure electricity supply to our 41 million end-users in the markets that we serve. We currently have approx. 2,800 employees, a turnover of EUR 2.3 billion, and a total asset value of EUR 13.6 billion. TenneT is one of the largest investors in national and international electricity grids, both onshore and offshore. Our focus is on integrating the Northwest European energy markets and facilitating the transition to a sustainable energy supply. TenneT is committed to meeting the needs of society by being responsible, engaged and connected.
Taking power further.
*) HGRT: Holding Gestionnaires de Réseaux de Transport SAS (shareholders: RTE 40%, TenneT 40%, Elia 20%). After closing of the transaction, HGRT holds 49% of the shares in EPEX SPOT. **) Elia: Belgian TSO ***) RTE: French TSO
