EFET contracts to be presented to Turkey's state-owned electricity firms
The European Federation of Energy Traders (EFET) is seeking to introduce standardised over-the-counter (OTC) trading contracts to Turkey's state electricity companies, which could add liquidity to Turkey's burgeoning OTC market, during a training workshop on 28 August.
EFET has invited members of electricity incumbent EÜAŞ, the state-owned wholesale company TETAŞ and state-owned distribution company TEDAŞ to attend the session.
The workshop comes at a time when EÜAŞ is expected to release hydro production that is currently sold under so-called transitional contracts to TETAŞ, which in turn sells the volumes to TEDAŞ and private distribution companies (see EDEM 6 June 2012). If this amount of energy - about 30% of Turkey's total generated power - is released as planned at the end of the year, liquidity on the free market could pick up.
It is not decided yet how the generation would be sold, but two possibilities include auctioning the electricity as part of annual tenders, or selling it on the free market.
EFET signings grow
The EFET contract is widely used in European markets and has been adapted to Turkish law. It was first signed by Turkish companies last September (see EDEM 9 September 2011). The EFET training session would highlight the use of the EFET contract as a risk-management tool and as a standardised contract that would allow counterparties to trade with each other.
The EFET coordinator in Turkey, Burak Güler, said the workshop was designed to attract awareness about the importance of EFET contracts for Turkish counterparties.
"It is highly important to familiarise state institutions to the EFET contracts, especially at a time when the Turkish [power] market is undergoing important changes," he said. "We have invited representatives of EÜAŞ, TETAŞ and TEDAŞ as well as members of the government and private distribution companies to attend."
Since the EFET contract was introduced in Turkey, up to 15 companies are thought to have signed it, helping to smooth OTC trading. AS
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