PAIRS - The International Energy Agency hailed progress by Turkey in improving energy security Tuesday, but pressed Ankara to permit more competition and to free energy system operators from government control.
While noting "Turkey has made great strides towards market liberalisation and privatisation," the IEA added that "there is reason for concern.
"The Turkish government plans to keep large parts of the country's hydropower generation facilities in its hands. Turkey should avoid giving state enterprises a special role in competitive areas of the market, as it may result in barriers to entry for new market participants and investors."
Not much competition has developed within the Turkish electricity market despite a strong legislative and regulatory framework, the agency added in its review.
"It is difficult for new entrants to compete with state-owned incumbents and only 29 percent of the market is free to choose suppliers."
Meanwhile, the independent electricity and gas market regulator EMRA, which the review said had been given considerable powers, may have "over-regulated certain markets, particularly the oil market, and should strive to take a more light-handed approach."
On the positive side, the review quoted IEA executive director Claude Mandil, currently on a visit to Turkey, as noting Ankara had ratified the international climate change convention.
"Oil and gas infrastrucure have been upgraded, strengthening Turkey's security of supply and that of the entire European continent," Mandil added.
"In addition, the government has recently renewed its pursuit of the nuclear option, which could further enhance the country's energy security."
04/19/2005 14:44 GMT