Abdullah Atalay's Statements on Bloomberg HT Regarding the Cancellation of the Electricity Procurement Tender
Our Chairman of the Board, Abdullah Atalay, made important statements on March 29, 2022, on the Piyasa Masası (Market Desk) program presented by Zeynep Erataman on Bloomberg HT, regarding the cancellation of the electricity procurement tender and market dynamics. Mr. Abdullah explained that supply companies sell energy to non-eligible consumers through EÜAŞ at regulated tariffs.
At the beginning of 2022, due to EÜAŞ's inability to supply this volume, new arrangements were made for designated supply companies (DSCs) to sell energy to end-users. A source-based tender through EÜAŞ was decided, but it was not concluded as the bid ranges anticipated by the administration did not materialize.
As a Plan B, EPDK introduced source-based price caps. This situation arose from the increases in Rotterdam imported coal prices being passed on to end-users with significant hikes. Atalay noted that in the formation of cost-based prices in the market, the highest-cost source dominates the clearing price, and the source-based price cap aimed to prevent this gap from widening. He stated that such restrictions are not compatible with liberal market instruments, that the application is temporary, and that authorities did not enter into this restriction willingly.
He believes that controlled audits will be activated by monitoring price changes in imported sources, so as not to expose end-users to high prices. The spot market and the Market Clearing Price (MCP) will continue. The cost differences created by DSCs in the regulated tariff for energy sourced from the day-ahead market — the so-called Omega differential receivables — will provide financial support.
Atalay said system administrators made this move out of temporary necessity, aiming to compensate for costs and ensure the sustainability of the system. He emphasized that this process is important for the future of Türkiye's electricity market.
Watch the program: youtube.com/watch?v=jhQTKDabZJU