Energy Law Update: Electricity Futures Market Postponed to June 2021
The decision No. 9965-2 of the Electricity Market Regulatory Board (the “EMRB”) in relation to Principles and Procedures Regarding Electricity Futures Market Operation (the “EFM Principles and Procedures”) that regulates the futures transactions in the electricity market was published on the Official Gazette No. 31027 dated 02.02.2020. The effective date which was determined as 01.12.2020 as per the EFM Principles and Procedures has been postponed to 01.06.2021 according to the EMRB Decision No. 9704 dated 19.11.2020 that has been published on the Official Gazette No. 31310 dated 20.11.2020.
Having been defined as future-dated electricity market that obliges the participants to make physical deliveries, the futures electricity market (the “FEM”) will be established within the Enerji Piyasaları İşletme Anonim Şirketi (the “EPİAŞ”) and will provide a reliable, transparent, consistent and competitive environment for futures electricity contracts.
According to the EFM Principles and Procedures, EFM shall be operated subject to a constant trade method and market transactions shall be made offer zone, delivery period and load type basis. EFM contracts shall impose an obligation to supply or withdraw 0,1 MWh electricity or its multiples in the relevant delivery date, in the relevant offer zone, on the delivery days of delivery period, on the hours of the relevant load type. It should also be noted that the relevant supply or withdraw amount shall be even in each hour of the relevant load type.
In the FEM, EPİAŞ is also designated as the guarantor in terms of physical delivery. In this vein, a default guarantee account consisting of contributions of the market participants will be established within the EPİAŞ for the purpose of covering the part exceeding the securities deposited by the market participants in the event of default of any market participant.
@Sena Güngördü, LLM– Kesikli Law Firm