10th anniverary of the APX Group

Toespraak | 18-06-2009

Speaking notes Ms. M.J.A. van der Hoeven, Minister of Economic Affairs, at the conference marking the 10th anniverary of the APX Group, Amsterdam/ 18 June 2009

Ladies and Gentlemen,

  • First of all: many congratulations on your 10th anniversary!
  • The APX Group to me represents entrepreneurship of the very best kind. You have picked up on challenges, secured continuous growth and - most impressively - you have changed the face of electricity and gas trading in this part of Europe. I highly commend you for that!
  • Starting out as the first electricity exchange in Europe in May 1999, you now also operate as its largest gas exchange.
    The number of companies active on APX Group exchanges is growing fast, now nearing a total of 300.
  • What's more, you operate markets in the Netherlands, Belgium and the United Kingdom and strongly cooperate with France, thus moving us closer to an integrated internal European market.
  • What's behind this success story?

  • Ladies and gentlemen, I think it all comes down to a strong sense of purpose.
  • Over the years, Mr Van Ouden and his team have taken a consistently forward-looking approach, opening up new vistas, leading the way.
  • The APX Group has over the past 10 years put us firmly on the map as an energy trading country.
  • The APX Group has been instrumental in successfully implementing a strategy of market coupling - involving Belgium, France and the Netherlands. The TLC has so far shown excellent results. Prices have converged, lowering risks and providing easier access for smaller players.
  • For instance, in 2006 spot prices between France and the Netherlands differed by about Euro 12.7 MegaWatt hours on average. After market coupling the price difference came down to Euro 5,5. In 2008 it showed a further decline. The price difference amounted to a little as Eur 0.88. Tangible results, I would say!
  • On the whole, this new system of implicit auctions has raised transparency and promoted efficiency in the electricity markets involved. The future will see more market players participate and greater volumes traded. I am sure the APX Group will continue to play a pivotal role in promoting market integration, in close cooperation with government, of course.
  • The APX Group's achievements are part of a bigger picture.
  • We are in the process of positioning ourselves as an energy hub for North-West Europe. In the field of gas, the Netherlands is keen to strengthen its position as a gas roundabout. The APX Group is important here. The gas roundabout is all about trade. Its functioning requires easy access for new market parties. Trades volumes will need to grow for the roundabout to function properly.
  • As I said before, a strong sense of purpose is the key to success.
  • This goes for commercial players such as the APX Group as well as government. In fact, it is this strong sense of purpose - a common purpose - that binds us.
  • I believe all our efforts should be geared to safeguarding affordable, clean and reliable energy supplies. This can only be done through maintaining a strong international scope.
  • It is vital that we increase market liquidity in order to realise these ambitions. The APX Group has already done a good job already, but more is still to be done.
  • I am working hard to prepare the ground for further market coupling. This requires careful fine-tuning in a regulatory sense, but also involves a great deal of diplomatic effort.
  • In this respect, the Netherlands have played an important role in the Pentalateral Forum, for instance. I will continue bilateral talks with our neighbouring countries and the EU, furthering our cause.
  • I would like to expand our effort to promote market coupling. This will involve the German as well as the Scandinavian market.
  • I am sure the APX Group will prove a reliable partner here. After all, you were awarded the "Energy Risk Award" in 2008 for your dedication to market coupling. You are not the kind of business partner that will shy away from complicated projects, this you have definitely proved up till now!
  • Another important development currently reshaping the Dutch energy market concerns ownership unbundling.
    This statutory change is now finally being achieved for energy companies. As a result, energy network companies will remain under government control, which is in the interest of the general public. At the same time, commercial energy production and distribution companies are free to enter into cross-border competition in a market that is now liberalised. Such competition will further promote market liquidity.
  • Structural reforms of the market also apply to market regulation, at home and abroad.
    The recent financial crisis has made clear that market trust is highly vulnerable and requires a sound regulatory environment.

  • To conclude: the work of the APX is vital to our joint mission of positioning ourselves as a leading and pioneering player in the North-West European energy market.
  • The energy market is more dynamic now than it has ever been. I am sure a strong sense of purpose will guide us through the challenges that still lie ahead.
  • I admire you for all that has been achieved in the past 10 years and hope the next 10 years will prove equally successful! I look forward to our further cooperation.
  • Have a wonderful day today!

Thank you.