New draft regulation from EMRA

A legislative amendment passed by the Turkish Grand National Assembly (TBMM) in recent months envisioned effective and deterrent sanctions for those engaging in market-distorting behavior in energy and environmental markets. The law also stated that the relevant implementation procedures and principles would be regulated by a regulation to be issued by the Energy Market Regulatory Authority (EMRA). Having completed its preparations for the matter, the EMRA has opened the draft regulation to public comment.

The draft regulation envisions increased transparency in energy and environmental markets. Market operators and market participants are required to publicly disclose information on events and circumstances affecting the trade of energy and environmental products on Transparency and Internal Information platforms. This aims to ensure that market participants can conduct their activities with equal opportunity and to prevent information asymmetries among market participants.

Another objective of the draft regulation is to prevent market-distorting behavior. The draft regulation addresses market-distorting behavior in three distinct categories. Accordingly, sanctions are stipulated for participants who fail to publicly disclose information on the Internal Information Platform regarding events and circumstances affecting the trade of energy and environmental products in a timely manner. Similarly, deterrent sanctions are also imposed on those who misuse information by failing to disclose such information to the public and using it to their own advantage or to benefit a third party. Individuals who, through their offers, transactions, and statements, provide false or misleading signals regarding the supply, demand, and price of products in the market, and who engage in market manipulation through abuse are also included in the scope of the draft regulation.

Emra (EMRA) officials emphasized that the economic volume of energy trade has reached very high levels, stating that the new regulation will play a crucial role in maintaining market confidence and stability. They stated, "Türkiye's energy exchange, EPİAŞ, generated a trading volume of approximately 865 billion Turkish Lira in 2024. We estimate that this figure, which currently reflects the economic size of electricity and natural gas trading on the exchange, will rise significantly in the coming years with the opening of emissions trading (carbon) markets. We believe that the draft regulation, which has been made available for public comment, will play a crucial role in maintaining confidence and stability in energy and environmental markets, which generate such a high economic volume."

Comments on the draft regulation, which was opened to public comment through an announcement on the Energy Market Regulatory Authority's website, can be submitted until October 31.