Turkey raises regulated power prices
London, 29 December (Argus) — Turkish energy regulator EPDK has increased regulated power prices by 7pc for January-March, compared with this quarter.
EPDK has raised tariffs for households, businesses and industrial users for the first time since January 2016. But the increase will not provide firms with eligible user portfolios sufficient margins, given present prices in the over-the-counter (OTC) market.
Forward prices have gained ground in the past month, after state-owned Botas raised regulated natural gas prices for power plants. And it will apply higher tariffs for utilities that demand more than 50pc of their previous requests.
State-owned trading company Tetas has opted to sell less power to regulated suppliers. This has supported the price outlook for 2018, as the move is expected to boost demand in the day-ahead and OTC markets.
The calendar year 2018 base-load contract dropped by 0.75 lira/MWh after the hike in tariffs, to TL183/MWh.
Turkey's Yek renewables fee last traded at TL50/MWh, lifting the cost of sales to eligible users above TL230/MWh, excluding other operational charges. The depreciating lira and higher renewables capacity in the Yekdem feed-in tariff scheme could bolster Yek prices.
Buying interest from firms with eligible consumer portfolios may be muted next year, because of the squeezed margins. This is likely to weigh on OTC liquidity.
|User type||1Q18 (TL/MWh)||4Q17 (TL/MWh)|