Transparency, Balance, And Competition In Energy Markets And Environmental Markets: An Evaluation Of EMRA's Draft Regulation

1. INTRODUCTION

Today, as the energy sector holds a strategic position in terms of economic growth, security of supply, and sustainable development, ensuring transparency in market operations is of critical importance for both increasing investor confidence and establishing a sustainable competitive environment.

In this context, Enerji Piyasaları İşletme Anonim Şirketi ("EPİAŞ"), which undertakes a central role in the processes for the transparent, predictable, and effective operation of energy markets, strengthens the institutional structure of Türkiye's energy markets through the regular sharing of market data and the prevention of information asymmetry.

The Republic of Turkey Energy Market Regulatory Authority ("EMRA") has submitted the Draft Regulation on Transparency and Market Abuse in Energy Markets and Environmental Markets (the "Draft Regulation"), which it prepared to ensure the transparent and reliable conduct of market activities, for public opinion on 14/10/2025.

EMRA adopts a participatory approach in its regulatory processes by taking into account the opinions and suggestions of market participants and other relevant parties; it places importance on stakeholder cooperation for the healthy development of the sector. In this regard, interested parties will be able to share their opinions and suggestions regarding the Draft Regulation with EMRA by the end of the business day on 31/10/2025.

2. FUNDAMENTAL PRINCIPLES

1. Which Bilateral Agreements Are Within the Scope of the Draft Regulation?

In the context of the Draft Regulation, bilateral agreements are contracts concluded among market participants, who are persons authorized to trade on their own behalf and for their own account in energy markets and environmental markets, including aggregators, balancing responsible parties, and transmission and distribution system operators, regarding the trade of products in the energy markets and environmental markets.

The Draft Regulation regulates matters related to the futures electricity market, the day-ahead market, the balancing power market, the ancillary services market, the futures natural gas market, the spot natural gas market, the emission trading system market, the organized renewable energy resource guarantee market, and the bilateral agreements made for the purpose of wholesale trade in these markets.

On the other hand, contracts traded in the futures and options market operated by Borsa İstanbul Anonim Şirketi and bilateral agreements concluded with consumers are outside the scope of the Draft Regulation.

2. According to the Draft Regulation, How Will Transparency in Energy Markets and Environmental Markets Be Ensured by EPİAŞ?

According to the Draft Regulation, two different platforms, under the names of the Inside Information Platform and the Transparency Platform, will be operated by EPİAŞ for the purpose of ensuring transparency in energy markets and environmental markets:

Inside Information Platform;is the central data platform that will be operated for the purpose of (i) the public disclosure of inside information in energy markets and environmental markets, (ii) market participants carrying out their market activities within the framework of equal opportunity, and (iii) the prevention of information asymmetry.

Pursuant to the Draft Regulation:

• Information that must be publicly disclosed pursuant to the relevant legislation,
• Information related to the production, storage, consumption, and transmission capacity and utilization of facilities, including the planned or unplanned unavailability of facilities belonging to market participants, and
• Other information likely to be used by a prudent market participant as part of the basis for a decision to enter into a transaction or to submit a bid concerning an energy and environmental product, qualifies as inside information.

Transparency Platform;is the central data platform where data such as price, volume, etc., remain outside of data qualifying as inside information in energy markets and environmental markets, will be published.

The data to be published will be procured by EPİAŞ from the organizations holding the data, based on the Draft Regulation. EPİAŞ is authorized to make protocols to procure data from institutions and organizations that are not market participants. Provided that:

• (i) data qualifying as trade secrets,
• (ii) data that reveal the identity of market participants,
• (iii) data of a nature that would lead to concerted practices or joint action within the framework of the Law on the Protection of Competition No. 4054,

cannot be published on the Transparency Platform.

3. According to the Draft Regulation, What Constitutes Market Abusive Conduct?

Market abusive conduct is addressed in three categories in the Draft Regulation:

Violation of the Obligation to Disclose Inside Information:It is the violation of the obligation to disclose data qualifying as inside information, and the changes that will occur in the data, completely and accurately, in accordance with the specified format, and without delay.

Insider Dealing:Persons who possess inside information in energy markets and environmental markets acquiring or disposing of an energy or environmental product by using that information through means such as submitting bids or executing transactions, and making attempts in this direction; disclosing inside information to third parties where not required; giving recommendations based on inside information for the acquisition or disposal of energy or environmental products.

Market Manipulation:Attempts such as submitting bids, executing transactions, modifying, or cancelling existing bids in a manner that gives or is likely to give false or misleading signals regarding the supply of, demand for, or price of products related to energy or environmental products; in a manner that secures or is likely to secure the prices of products at artificial levels without legitimate reason; by employing a fictitious device or any other form of deception or contrivance, in a manner that gives or is likely to give false or misleading signals regarding the supply of, demand for, or price of products; or in a manner that will be to the detriment of the market or market participants by means of abusing the market or market rules.

4. What Are the Sanctions for Market Abusive Conduct?

Pursuant to Article 13 of the Draft Regulation, an administrative fine shall be imposed:

• (i) of up to two million Turkish liras on the market participant who violates the obligation to share inside information;
• (ii) in the event of insider dealing, of up to twenty million Turkish liras if the violator is a market participant, and up to two million Turkish liras if a natural person;
• (iii) in the event of market manipulation, of up to twenty million Turkish liras if the violator is a market participant, and up to two million Turkish liras if a natural person.

When determining the amount of the administrative fine, criteria such as the gravity and degree of the violation, the degree of fault, the impact of the violation on the market and market prices, unjust enrichment, damage, repetition, and cooperation with EMRA will be taken into consideration.

The sanction decisions of the Energy Market Regulatory Board within the scope of the Draft Regulation will be published in the Official Gazette and on EMRA's website.

5. What Are the Responsibilities of Market Participants and Market & System Operators?

Market participants are obligated to identify, process, preserve, and effectively disclose inside information on the Inside Information Platform within the scope of the Draft Regulation; to notify EPİAŞ of the persons authorized to transact on the Inside Information Platform; to report market abusive conduct or suspicious situations to EMRA; to submit the information and documents requested by EMRA for the purpose of investigating market abusive conduct or market surveillance; and to ensure their confidentiality when necessary.

On the other hand, EPİAŞ, Türkiye Elektrik İletim Anonim Şirketi, and Boru Hatları ile Petrol Taşıma Anonim Şirketi are obligated primarily to ensure that transactions occurring in the markets they operate are conducted in a reliable, transparent, effective, stable, fair, honest, and competitive manner; to establish a market surveillance unit for the purpose of detecting violations; to employ personnel, and to establish their own surveillance systems.

3. CONCLUSION

The Draft Regulation, prepared based on the Electricity Market Law No. 6446, presents a comprehensive framework for the purpose of strengthening transparency and protecting market integrity in energy markets and environmental markets.

The Draft Regulation envisages the operation of two central structures, namely the Inside Information Platform and the Transparency Platform, to ensure equal access to information and to prevent insider dealing, thereby ensuring the institutionalization of market surveillance and supervision.

The Draft Regulation, with innovations such as the "prudent market participant" concept, defines behavioral standards specific to energy law, while at the same time creating a special regulatory area complementary to the general provisions of the Law on the Protection of Competition No. 4054. In this respect, the Draft Regulation constitutes an important step in terms of ensuring the fair conduct of competition in energy markets, preventing market manipulation, and establishing a reliable market structure.

You can access the Draft Regulation and the Opinion Form via thislink.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.