EUD Chairman Cem Aşık: Market Dynamics should not be Distorted in the Electricity Purchase Tender Process of EÜAŞ

Cem Aşık, Chairman of the Board of Directors of the Electricity Producers Association, said that the Electricity Generation Co. (EÜAŞ) should stay within the market dynamics in the electricity procurement tender process regarding the regulation on thermal power plants producing with domestic coal in order to balance energy costs.

EÜAŞ announced that it will procure the largest portion of the electricity it will purchase between 1 April 2022 and 31 December 2025 from companies producing electricity based on domestic coal. 150 billion kWh of the electricity to be purchased by EÜAŞ will be supplied from power plants based on domestic coal.

Cem Aşık, Chairman of the Board of Directors of the Electricity Producers Association, who was a guest of Bloomberg HT, made evaluations about the regulation of Electricity Generation Inc. regarding thermal power plants producing with domestic coal in order to balance energy costs.

Aşık emphasised the importance of staying within the market dynamics during the electricity procurement tender process and stated that bilateral agreements should not be broken during this process. Stating that EÜAŞ held 5 separate tenders, allowing suppliers to enter the tender on the basis of resource type, Aşık said that they wanted the tenders to be successful and that the producers “did their best” to offer low-cost electricity. Commenting on the methodology of price escalation for long-term bidders, Aşık said, “Escalation was evaluated differently for each type of resource. We tried to cover the main increase points of production from each source as much as possible. Maintenance and spare parts expenses in domestic coal power plants were determined according to the ratio of the dollar component.”

Aşık made the following statements about the continuity of the legislation to be implemented:

“The law says up to 6 months. Theoretically, it can be applied repeatedly, but the course of the war is very important. There is an extra problem brought by it. When that foam disappears, we think that there will be no need to use it again when it comes to supporting the consumer who basically needs it. In other words, the market will become self-supporting.”

Source: BloombergHT