Turkey tailors EFET agreement to boost OTC electricity liquidity
The European Federation of Energy Traders (EFET) and its Turkish counterpart ETD have agreed on a Turkish version of the EFET general over-the-counter (OTC) agreement to trade electricity. An official statement will be released later this week. The contract has been translated and adapted to comply with Turkish regulations and meet the country's market's specificities.
The introduction of a standardised contract into the Turkish energy market is a first step towards the creation of a liquid OTC market in the country (See EDEM 4 July 2011).
"We are expecting government to support the idea and help [in] eliminating obstacles to promote liquidity such as repetitive stamp duties," ETD chairman Mustafa Karahan said.
Changes to the EFET contract to suit the Turkish market include the need to have all agreements in written form as well as the introduction of Turkish lira as the base currency with the possibility to choose other currencies.
The agreement will have to be concluded according to Turkish law in line with electing Turkish jurisdiction and arbitration.
Under existing regulations, any legal instrument negotiated between Turkish companies need to be in the Turkish language. This requirement does not apply if one of the counterparties is not Turkish.
Turkey has already synchronised its grid with the European system and started commercial flows with Bulgaria and Greece this year.
ETD and EFET will run a workshop on Friday on the standard contract, where more details will be unveiled. DL
Other Related Stories