Turkish energy market has begun a new chapter on September 1 as its mid-day electricity market has started to be run by the Turkish Energy Stock Market (EPIAS).
Mustafa Yilmaz, the head of the Turkish Energy Regulatory Market (EPDK), told Anadolu Agency that EPIAS and TEIAS are given a 49-years-long operating license for the country's electricity market from September 1 onwards.
An electricity market is a system enabling purchases through bids; sales through offers; and short-term trades generally in the form of financial or obligation swaps. The mid-day market will start at 6:00 PM for the following day's electricity prices which will then roll on.
'Operating mid-day and day-ahead electricity transactions market will be handled by EPIAS, while stabilization of market activities will continue to be carried out by the electricity transmission company TEIAS,' he explained.
The reason behind the introduction of the mid-day market is to increase competition among Turkey's electricity suppliers and to provide fair market prices to consumers. After completing the day-ahead market, the mid-day market and power balancing market, the 36 hours difference between the markets will be decreased and problems in the electricity market will be diminished.
Stating that Turkish electricity market has grown significantly over the past years, reaching a $30 billion annual trading volume, Yilmaz said 'A high-caliber structuring was needed to manage Turkey's developing electricity market fairly.'
According to the U.S. Energy Information Administration, Turkey has one of the fastest growing electricity, natural gas, and overall energy demand among the Organization for Economic Cooperation and Development countries.
- An anchor for foreign investors
'EPIAS will provide a world standard mechanism in transparency to carry the electricity market forward, and will provide reliability for foreign companies that want to invest in Turkey,' Yilmaz said, noting that the number of customers in the electricity market is close to reach two millions at the moment.
He informed that trading natural gas and other energy commodities will also begin under EPIAS in the future, and added 'Establishing a strong energy market has been talked for a long time in Turkey. That way, it will be realized.'
Yilmaz told that EPIAS' revenue ceiling is approved as 5.77 million Turkish liras ($1.89 million) by EPDK until the end of 2015.
Established as a private corporation, 40 percent of EPIAS' shareholders are private companies, as each firm is allowed to buy as high as four percent in order to avoid monopolies. Meanwhile, 30 percent of EPIAS shares are held by TEIAS and state-owned Petroleum Pipeline Corporation (BOTAS), and the remaining 30 percent were bought by Istanbul Stock Exchange (BIST).
Reporting by Muhsin Baris Tiryakioglu
Writing by Ovunc Kutlu