Legality of electricity contracts and trading in Turkish Derivatives Exchange

Especially after the 1980s, liberalization and privatization efforts have been initiated largely around the world in the energy field, and electrical energy has been effected from this transformation. Due to the increase in the system efficiency, which is a result of allocation of competitive environment to the electricty markets, prices in the competitive environment are lower than the prices in human-centered structure. However, because of the uncertainities, large fluctuations can be seen. As a result of these price fluctuations, electricity market participants such as electricity producers, consumers and traders, undertake significant risks. Electricity futures contracts save these participants from these risks in the competitive electricity market or let them manage these risks. Although future contracts have been used for many goods and services over 100 years, their use in electricity sector only started in 1990s, and this usage has showed a great progress in a short time through being a preferred risk management tool by market participants.In this study, the legal status of servicing of the electricity from production to consumers and the legal status of the electricity contracts when it is traded as future contracts were examined in order to provide an important resource for this sector