The Amsterdam Power Exchange

Continental Europe’s first electricity exchange is taking shape. While the Amsterdam Power Exchange (APX) still faces challenges, most of the critical issues have been resolved and concrete steps towards its implementation are being made. The emergence of a spot market for electricity represents a quantum leap in the European liberalization process. The exchange is a tool that will fundamentally alter the way utilities operate with implications beyond the boundaries of the Netherlands. Dr Michael Kraus PricewaterhouseCoopers, Berlin

An international spot market for electricity, the Amsterdam Power Exchange (APX), is being set up, due to start operation in the beginning of 1999. Unlike the UK Pool or the recently commissioned California Power Exchange, APX will be a voluntary exchange, on a model similar to Nord Pool, the electricity exchange of Scandinavia. It is worth noting that APX is being promoted and developed in a regulatory framework which was not designed for this purpose. In contrast to California's non-profit power exchange, APX is set up as profit-oriented venture by the APX Found-ation, which comprises generators, distributors, the system operator, customers, the government and other interested parties. Th