CLIENT ALERT

May 2017

   

 

For further information please contact:

Av. Dr. Çağdaş Evrim Ergün
Partner, Ankara
c.ergun@cergun.av.tr

Av. Ayça Özbek
Associate, Ankara
a.ozbek@cergun.av.tr

Ergün Avukatlık Bürosu İstanbul | Levent Loft II, D: 13-16, Levent
T +90 (212) 280 90 91

Ankara | Mahall Ankara, E Blok, D: 63, Çankaya
T +90 (312) 220 30 60

E info@cergun.av.tr

W cergun.av.tr

Recent Amendments to Electricity Organized Wholesale Market Regulations

Certain principles and procedures regarding the electricity day-ahead market and intra-day market have been amended by the Energy Market Regulatory Authority’s decisions[1] published in the Official Gazette on 28 April 2017, as follows:

  • Minimum time period requirement for block offers, which are designated by the market participants, has been shortened. Accordingly, such block offers will cover at least three-hour time period which used to be at least four hours.
  • Establishment of a connection between up to six block offers (which used to be three block offers) in same direction (sale or purchase) within the same region has been enabled with these amendments. However, the three-level rule will remain to be applicable. In other words, whilst acceptance of the third level block offer will be contingent upon acceptance of the second level block offer and acceptance of the second level block offer will be contingent upon acceptance of first level block offer, there will be no fourth level block offer connected to third level block offer since the amendment only increases the number of block offers that can be involved in a connection rather than the levels of blocks.
  • 25% of the initial security amount, which is to be submitted by the market participants during their legal entity applications, will no longer required to be provided in cash.
  • Procedure for submission of securities the day before weekends and/or holidays has been amended. Accordingly, the security amount announced by EPİAŞ at 2:30 p.m. (instead of the total security amount available at 11 a.m. security control) shall be taken into consideration during the 5 p.m. security control on the day before weekend and/or holiday.
  • An additional security control has been envisaged which will be conducted at 5 p.m. during business days. Accordingly, in the event the security submitted by the market participants is not deemed sufficient, Takasbank will make an announcement at 4 p.m. for completion of the minimum cash security and/or total security amount by 5 p.m on the same day. In other words, market participants will be required to complete the security amount on the same day with Takasbank’s completion announcement as opposed to the rule prior to this amendment which envisaged completion of the security amount by 11 a.m. next day.
  • A special provision has been envisaged in relation to sanctions which will be applicable to bilateral agreements in the event the security amount of the market participant is not deemed sufficient. Accordingly, in the event the security amount of the market participant is not deemed sufficient during 11 a.m. security control (and 5 p.m. security control for the weekends and/or holidays), market participant will not be allowed to submit any bilateral agreement notification in which it is the seller and all of its prospective bilateral agreement notifications in which the it is the seller shall be cancelled.
  • The day when the risk security amount will be taken into consideration whilst calculating the total security amount has been amended. Accordingly, the total risk security amount, which is to be calculated by including the previous day’s data, shall be used in calculation of the total security amount which is announced on the same day by 2:30 p.m. (which used to be taken into consideration in calculation of the total security amount which is made three days after the calculation of the risk security amount).

[1] Decisions numbered 7042-5 and 7042-6.

 

This information is provided for your convenience and does not constitute legal advice. It is prepared for the general information of our clients and other interested persons. This should not be acted upon in any specific situation without appropriate legal advice. This information is protected by copyright and may not be reproduced or translated without the prior written permission of Ergün Avukatlık Bürosu.