Both Physical and Financial

Power Futures Market (PFM)

A New Milestone in Turkish Energy Market

Start of the Live Transaction

1 June 2021

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EPİAŞ PFM

Objectives of the Project

“After all the stakeholders come to an agreement that a need arises for a new market, in addition to the existing ones, with long-term, central counterparty service and physical delivery, the Power Futures Market (PFM), all designed and developed with national and domestic resources within EPİAŞ, is offered to the service of the entire sector.”

EPİAŞ PFM

Development Process

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We started business development and legislation studies.
In 2018
Business development and legislation studies were completed.
In January 2019
The amendment to the law allowing the operation of the Power Futures Market by EPİAŞ has been published.
On 30 January 2019
The studies on the software started.
In June 2019
The amendments in the Balancing and Settlement Regulation (DUY) and Operational procedures and principles on the Power Futures Market have been published.
On 2 February 2020
The method for the Power Futures Market has been approved
On 29 June 2020
The virtual application has been introduced.
On 15 December 2020
All modules in the virtual application have been activated.
On 1 April 2021
The live application of PFM will be introduced.
On 1 June 2021
EPİAŞ VEP VLOG

About the Project

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What will PFM bring to the market participants?

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Collaterals in PFM

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What is the end of the trading day in PFM?

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The Difference Between Financial Period and Physical Period in PFM

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What are the rules of PFM? When and how will the market participants make the transactions?

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How will participation and transaction processes take place in PFM?

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What are the differences between PFM contracts from "Base Load Electricity Futures Contracts" traded on Borsa Istanbul?

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What are the differences between PFM contracts from bilateral contracts traded in the over-the-counter market?

Frequently Asked Questions

The market participants will have the opportunity to hedge the price risk and see the future price expectations by fixing their buying or selling prices against future price changes. For the transactions made, EPİAŞ will provide central counterparty service and guarantee the physical delivery and payments related to the trade. Thus, the market participants will be avoided from counterparty risk. The daily benchmark price (GGF) published at the end of each session for each contract open to trade on PFM will create a price signal for the market participants and investors. The resulting price signal will contribute to investments and long-term supply security.

Bilateral agreements;

 

  • They are special agreements between the parties.
  • They are traded in the over-the-counter market.
  • The counterparty risk is available. The seller may not deliver the product determined by the bilateral agreement or the buyer may not pay the price determined by the bilateral agreement.
  • It is difficult to transfer the bilateral agreement to a third party before its due date.
  • It is not subject to regulation.
  • The stamp duty is applied.

In Borsa Istanbul Futures and Options Market (VIOP),

The participants in the electricity market and financial investors make transactions.

The form of settlement is the cash settlement. There is no physical delivery of available electricity.

It is made with daily settlement.

Letter of guarantee is not accepted.

However, in PFM,

Only the participants in the electricity market who have a license from Energy Market Regulatory Authority (EMRA) will be able to make transactions.

The form of settlement is physical delivery.

A monthly settlement will be made. The settlement will take place in the month following each delivery month.

The market participants will be able to submit a letter of guarantee as collateral.

As in every commodity market, electricity producers and electricity consumers want to protect themselves against price risks in the electricity market.

The producer wants to protect itself against possible drops in the electricity prices and to have a regular cash flow.

The consumer, on the other hand, wants to protect itself against possible increases in the electricity prices and to be able to calculate production costs more accurately.

In order to participate in the Power Futures Market that will meet all these needs, first of all, the person;

must have an electricity generation or supply license,

have a registry as a legal entity,

sign the Market Participation Agreement,

sign the PFM Participation Agreement,

make Takasbank registration,

and deposit the Entry Collateral and Default Guarantee Account contribution.

Market participants shall make transactions between 13:00 and 16:00 every business day.

 

They shall trade electricity in different load types such as base and peak for annual, quarterly, monthly and remainder of the year delivery periods.

Weekly and daily contracts shall also be traded in line with the needs of the market.

 

Base Load refers to the exchange of electricity by the market participants in equal amounts in every hour between 00:00 – 24:00 of every day subject to physical delivery within the delivery period.

 

Peak Load refers to the exchange of electricity by the market participants in equal amounts in every hour between 08:00 – 20:00 of every day subject to physical delivery within the delivery period.

 

The market participants shall submit sales and purchase offers to the market in prices and quantities determined in line with their own commercial decisions.

 

In order for these offers to be valid, first of all, the collateral requested by EPİAŞ must be sufficient and must be within the transaction limits allowed to the participant.

These transaction limits are called position limits.

 

When the sales and purchase offers match, a production-consumption obligation occurs, and this matching offer is called as an open position.

 

If the participants with a selling or purchasing position make a transaction in the opposite direction to their position, then the position is netted and the collateral discount is made because the net position of the market participant decreases.

For example;

On 1 December 2020, the buyer made a transaction for the contract of the first quarter covering January, February and March 2021.

 

In this case, the buyer’s position until 29 December 2020, until 3 working days of the beginning of the delivery period, is in the financial period.

 

The physical delivery period does not begin yet, and the market participants may continue constantly to proceed with the relevant contracts in this period.

 

The open positions of the buyers in the quarterly contract are transferred to January, February and March contracts on 29 December 2020, which is the last transaction day of the contract.

 

The January contract is closed for the transactions.

 

The physical delivery of this month begins at 00.00 on 1 January and ends at 23.59 on 31 January.

 

February and March contracts are in the financial period during January and they continue to be traded on the market.

 

With the end of January, the delivery period of the January contract is completed and in February, the settlement and billing of positions in the respective contract are made.

 

With the completion of the transactions, the participants are paid back their collaterals.

The Daily Benchmark Price is calculated and published through the matches in the sessions for each contract, which is open to the transaction at 17.00, with the operations of the market participants between 13.00 and 16.00.

 

The total collateral amount that the market participants have to offer is updated by using the calculated Daily Benchmark Prices.

 

In case of insufficient existing collateral, the relevant market participants are called for collateral completion.

The market participants have to fulfil the call for collateral completion until 12:00 on the following business day.

In the financial period;

Contract Collateral, Updating Collateral in line with the Market, and other collaterals are taken from the market participants, who have long or short open positions;

against the price exchange risk of the PFM contract,

In the physical period;

collateral for physical delivery is taken from the buyer and seller;

against the risk of bill collection resulting from the buyer and the risk of performing physical delivery resulting from the seller.

Power Futures Market Training

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Power Futures Market Training I

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Power Futures Market Training II

Team

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Project Stakeholders

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© 2021 EPİAŞ PFM

CONTACT INFORMATION

EPİAŞ VEP

Objectives of the Project

Electricity markets in our country operated within EPİAŞ are called spot markets due to the close maturity of transactions. All designs and developments of the operated Day Ahead and Intra Day markets have been put into practice with domestic and national resources within EPİAŞ and offered to our energy sector. When the development of electricity markets in our country is examined, it is seen that the long-term electricity contracts that are subject to regulation and provide central counterparty services are operated within BIST and only cash settlement is offered. In addition, the long-term electricity contracts that are not regulated and do not provide central counterparty services are traded both in cash and physically in the over-the-counter markets (OTC). After all the stakeholders come to an agreement that a need arises for a new market, in addition to the existing ones, with long-term, central counterparty service and physical delivery, the Power Futures Market (PFM), all designed and developed with national and domestic resources within EPİAŞ, is offered to the service of the entire sector. In the spot electricity markets, market participants can balance their portfolios and make optimization physically. In the Power Futures Market, the market participants have the opportunity to hedge from the price risk (hedging) and to see price prospects for the future (price discovery). Therefore, spot and Power Futures Markets can be considered as the markets that respond to different needs of the market participants and they complement each other in this respect. Forward transactions can be made in organized markets as well as in over-the-counter markets through bilateral agreements. There is counterparty risk in transactions made in over-the-counter markets and the price discovery function for the future is not realized since the transactions are not published regularly. With the emergence of sound price expectations for the future, feasibility studies for electricity and electricity-based investments will become easier, and an atmosphere of trust will be ensured for new investments.

 

Project Sponsor

Ahmet Türkoğlu

Project Steering Committee

Mehmet Uçansoy

Nezir Ay

Ramis Kulak

Avni Çebi

Muharrem Eliş

Mehmet Haluk Yılmaz

Ahmet Ak

Suat Kır

Project Management

Ragıp Tanrıkulu

Necat Demirağ

Elif Selcen Toraman

Project Team

Abdullah Korkmaz

Abdulmelik Buğda

Ahmet Aydın

Ahmet Güngör

Ahmet Hatipoğlu

Ahmet Kök

Ahmet Yalçın

Ali Parmaksız

Ali Şamil Özen

Ali Yenilmez

Alper Koyutürk

Ayhan Yanbul

Aziz Keskin

Bilal Topçu

Birol Karatay

Burak Almazlar

Burcu Eren Dolu

Ceyhun Çelik

Cihet Aktaş

Cüneyt Taha Özkan

Çağrı Zirek

Derya Erbay

Derya Taş Ereke

Dilek Küçük

Efecan Çetin

Emre Avcılar

Enes Ateş

Erdal Kılınç

Erdoğan Erbaş

Eren Muslu

Fatih Semih Sarıoğlu

Fırat Elgit

Filiz Alaca

Gürler Gülçe

Hakkı Acar

Halime Hilal Aldemir

Harun Kaya

Harun Yayla

Hasan Balkan

Hasan Turgut

Hayri Şimşek

Hilal Zihni Öztürk

İbrahim Çandır

İbrahim Ziya Özgün

Mehmet Sülün

Mehmet Şirin Adanır

Mehmet Yazla

Meral Merve Koşar

Metin Morgül

Meriç Emre Aydın

Muhammed Özsoy

Murat Günsay

Murat Can Saygılı

Mustafa Bitiş

Mustafa Murat Orhan

Mustafa Yarıcı

Mustafa Yeşilyurt

Necmettin Rüstem

Orhan Çolak

Orhan Satıroğlu

Osman Alperen Elhan

Ozan Baştuğ

Ömer Budancamanak

Ömer Çalık

Ömer Metin Gökgöz

Ömer Karataş

Rahmi Öztürk

Sait Akyüz

Samet Gündüz

Seda Ayça Yıldız

Semih Akın

Sencer Serin

Serdar Sokol

Serkan Işkın

Sezer Halat

Soner Gerbaga

Şükran Merve Yavuz

Umut Özfidan

Vedat Gülmez

Volkan Gerçek

Yakup Karıksız

Yunus Emre Gürler

Yunus Sezer

Yusuf Gündüz

Yusuf Sinan Akıncı

Zeynep Aslıhan Kara

Zeynep Keleşoğlu

Communication Team

Cihat Belviranlı

Yağmur Demirel

Haluk Semih Dündar

Proje Sponsoru

Ahmet Türkoğlu

Proje Yönlendirme Komitesi

Mehmet Uçansoy

Nezir Ay

Ramis Kulak

Avni Çebi

Muharrem Eliş

Mehmet Haluk Yılmaz

Ahmet Ak

Suat Kır

Proje Yönetimi

Ragıp Tanrıkulu

Necat Demirağ

Elif Selcen Toraman

Proje Takımı

Abdullah Korkmaz

Abdulmelik Buğda

Ahmet Aydın

Ahmet Güngör

Ahmet Hatipoğlu

Ahmet Kök

Ahmet Yalçın

Ali Parmaksız

Ali Şamil Özen

Ali Yenilmez

Alper Koyutürk

Ayhan Yanbul

Aziz Keskin

Bilal Topçu

Birol Karatay

Burak Almazlar

Burcu Eren Dolu

Ceyhun Çelik

Cihet Aktaş

Cüneyt Taha Özkan

Çağrı Zirek

Derya Erbay

Derya Taş Ereke

Dilek Küçük

Efecan Çetin

Emre Avcılar

Enes Ateş

Erdal Kılınç

Erdoğan Erbaş

Eren Muslu

Fatih Semih Sarıoğlu

Fırat Elgit

Filiz Alaca

Gürler Gülçe

Hakkı Acar

Halime Hilal Aldemir

Harun Kaya

Harun Yayla

Hasan Balkan

Hasan Turgut

Hayri Şimşek

Hilal Zihni Öztürk

İbrahim Çandır

İbrahim Ziya Özgün

Mehmet Sülün

Mehmet Şirin Adanır

Mehmet Yazla

Meral Merve Koşar

Metin Morgül

Meriç Emre Aydın

Muhammed Özsoy

Murat Günsay

Murat Can Saygılı

Mustafa Bitiş

Mustafa Murat Orhan

Mustafa Yarıcı

Mustafa Yeşilyurt

Necmettin Rüstem

Orhan Çolak

Orhan Satıroğlu

Osman Alperen Elhan

Ozan Baştuğ

Ömer Budancamanak

Ömer Çalık

Ömer Metin Gökgöz

Ömer Karataş

Rahmi Öztürk

Sait Akyüz

Samet Gündüz

Seda Ayça Yıldız

Semih Akın

Sencer Serin

Serdar Sokol

Serkan Işkın

Sezer Halat

Soner Gerbaga

Şükran Merve Yavuz

Umut Özfidan

Vedat Gülmez

Volkan Gerçek

Yakup Karıksız

Yunus Emre Gürler

Yunus Sezer

Yusuf Gündüz

Yusuf Sinan Akıncı

Zeynep Aslıhan Kara

Zeynep Keleşoğlu

İletişim Takımı

Cihat Belviranlı

Yağmur Demirel

Haluk Semih Dündar

EPİAŞ VEP

Proje Amacı

Ülkemizde EPİAŞ bünyesinde işletilen elektrik piyasaları yakın vade işlemleri nedeniyle spot piyasa olarak adlandırılmaktadır. İşletilen Gün Öncesi ve Gün İçi piyasasının tüm tasarım ve geliştirmeleri EPİAŞ bünyesinde yerli ve milli kaynaklar ile hayata geçirilerek enerji sektörümüzün hizmetine sunulmuştur. Elektrik piyasalarının Ülkemizdeki gelişimi incelendiğinde; regülasyona tabi ve merkezi karşı taraf hizmeti sunulan uzun vadeli elektrik kontratları BİST bünyesinde işletilmekte olup sadece nakdi uzlaşma imkanı sunulmaktadır. Bunun yanında regüle edilmemiş ve merkezi karşı taraf hizmeti sunulmayan uzun vadeli elektrik kontratları, tezgah üstü piyasalarda (OTC) hem nakdi hem fiziksel olarak işlem görmektedir. Tüm paydaşlar nezdinde uzun vadeli, merkezi karşı taraf hizmeti sunan ve fiziksel teslimatın olduğu mevcut piyasalara ek yeni bir piyasa ihtiyacının doğduğu üzerinde mutabakat sağlanması sonucu; EPİAŞ bünyesinde tüm tasarımı ve geliştirmesi milli ve yerli kaynaklar ile yapılmış olan Vadeli Elektrik Piyasası (VEP) tüm sektörün hizmetine sunulmaktadır. Spot elektrik piyasalarında piyasa katılımcıları portföylerini dengeleme ve fiziksel optimizasyon yapabilmektedir. Vadeli elektrik piyasasında ise piyasa katılımcıları fiyat riskinden korunma (hedging) ve geleceğe yönelik fiyat beklentilerini görme (price discovery) imkânı bulmaktadır. Dolayısıyla spot ve vadeli elektrik piyasaları, piyasa katılımcılarının farklı ihtiyaçlarına cevap veren, bu yönüyle birbirini tamamlayan piyasalar olarak değerlendirilebilir. Vadeli işlemler organize piyasalarda yapılabildiği gibi tezgâh üstü piyasalarda da ikili anlaşmalar yoluyla yapılabilmektedir. Tezgâh üstü piyasalarda yapılan işlemlerde karşı taraf riski mevcuttur ve yapılan işlemler düzenli olarak yayımlanmadığı için geleceğe yönelik fiyat keşfi fonksiyonu gerçekleşmemektedir. Geleceğe yönelik sağlıklı fiyat beklentilerinin oluşması ile elektrik ve elektriğe dayalı yatırımlar için fizibilite çalışmaları kolaylaşacak, yapılacak yeni yatırımlar için güven ortamı oluşmasına katkı sağlanacaktır.