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Turkish exchange to offer natural gas, coal and electricity trading – bourse source

23 Jan 2012 17:29:40 | edem

Turkey is drawing up plans to launch a single, privately-run exchange for trade in electricity, natural gas and coal under amendments to its energy law, a source linked to the bourse told ICIS Heren on Monday.

The country expects to see the current Day-ahead exchange split from the balancing market and organised under private ownership. The balancing market will remain the remit of grid operator TEIAŞ, the source said.

However, under amendments being drafted by regulator EMRA and expected to be passed by the Turkish parliament later this year, there would be a single, privately-run energy exchange, EPIAŞ, which would accommodate trading for electricity, natural gas and coal following the model of the European Energy Exchange, EEX.

The source conceded it would take longer for natural gas or coal to trade on the exchange, given the slow liberalisation process on the two markets.

However, Turkey's electricity sector is currently spearheading the transition from a monopoly to a liberalised market and has already clocked up a number of achievements.

Last December, the power sector saw the transition from a Day-ahead for planning platform to a fully-fledged Day-ahead exchange, operated by PMUM (see EDEM 22 November 2012).

PMUM is also looking to offer a raft of new trading platforms to complement the new Day-ahead exchange. The operator is now developing an intra-day market and a screen for over-the-counter trading.

"The intra-day market is a necessary addition to the exchange," the source said. "Optimistically, we could have it by June, but I would say the more likely launch date is the fourth quarter of this year."

The source added that although, technically, an intra-day market could be launched without changing the current legal framework, PMUM would rather wait for the energy law to be amended to ensure any newly launched outfits have solid legal backup.

Some of the most important amendments to the law concern the creation of EPIAŞ, the introduction of a pre-licensing application for generation products, and the merger of the wholesale and retail licences into a single supply licence (see EDEM 4 January 2012).AS

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