Premium
Gas supply outstrips demand in Turkey's liberalized markets
Publication year - 2006
Publication title -
oil and energy trends
Language(s) - English
Resource type - Journals
eISSN - 1744-7992
pISSN - 0950-1045
DOI - 10.1111/j.1744-7992.2006.310107.x
Subject(s) - dominance (genetics) , electricity , competition (biology) , market economy , consumption (sociology) , economics , business , electricity market , commerce , supply and demand , international economics , microeconomics , chemistry , ecology , social science , biochemistry , sociology , biology , electrical engineering , gene , engineering
Turkey has been liberalizing its gas and power industries since 2001, when it passed a series of laws governing the operation of the domestic markets in gas and electricity. The gas business is supposed to be primarily a free market, with around 80% open to competition. In electricity, the market‐opening is much lower, at 30%. In practice, competition is less widespread than the above figures suggest, owing to the continued dominance of powerful state energy companies, which may have slowed down the growth of the gas and electricity businesses. Gas consumption, in particular, has grown much more slowly than was once forecast. At present, Turkey has contracted to buy more gas than it needs: but this situation may change soon after 2010, obliging Turkey to look for new foreign supplies.