Establishment of Energy Exchange in Turkey
Transcription
Establishment of Energy Exchange in Turkey
Establishment of Energy Exchange in Turkey Sibel Çetinkaya 27 September 2012 Agenda European Energy Exchanges 2 Examples from Turkey 14 Suggestions for Turkish Energy Exchange 17 1 ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited European Energy Exhanges 2 Europe Electricity Market Volume 2011 Efficient and liquid spot and financial markets are a prerequisite for competitive electricity markets and hence fair, cost-reflective prices achieved for customers 316* TWh 1,047.8 TWh 45,7 TWh 3,3 28.4** TWh 40.4 TWh 1,075 TWh • The increasing trade volumes and liquidity in spot and derivatives markets confirm the success of the energy exchanges. 313.9 TWh 8.8 TWh 34 TWh Power spot market volume 2011 Power derivatives market volume 2011 * Including the day ahead auction at N2EX in the UK ** APX-Endex Power NL 3 311.4 TWh 31.7 TWh • The derivatives markets in Europe are monitored by European Securities and Markets Authority (ESMA) in order to enforce uniform standards. • On the other hand, The Agency for the Cooperation of Energy Regulators (ACER) is the EU body created to further progress on the completion of the internal energy market both for electricity and for natural gas. ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Europe Gas Markets Volume 2011 ~4 TWh • The products offered in natural gas markets consist of day contracts, withinday contracts, weekend contracts, swap contracts, balance of month contracts and a following-month contract. 238* TWh 14.3** TWh 35.5 TWh 23.1 TWh 4.78 TWh Some of the energy exchanges also operate spot and futures gas markets in Europe. Gas spot market volume 2011 Gas derivatives market volume 2011 * APX-Endex TTF Gas futures volume 2011 ** Includes APX- Endex TTF Gas spot market volume 2011 and Gas ZEE volume 2011 4 ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Electricity Market Examples Nord Pool Spot (NPS) and NASDAQ OMX NASDAQ OMX acquires Nord Pool ASA, the world's largest power derivatives exchange and one of Europe's largest carbon exchanges A joint Norwegian-Swedish power exchange is established, and renamed as Nord Pool ASA 1993 1996 Spot market starts in Norway Denmark joins to the exchange 1998 Finland joins to the exchange 2000 2002 N2EX, the market for UK power contracts was launched by NPS and NASDAQ-OMX. NPS opens bidding area in Germany that geographically gives access to Germany 2005 Nord Pool's spot market activities are organized in a separate company, namely Nord Pool Spot AS (NPS). NPS opens a bidding area in Estonia 2008 NASDAQ OMX acquired Nord Pool Clearing ASA and Nord Pool Consulting AS from Nord Pool ASA 2010 2011 Cross border intraday market launches between Belgium & Netherlands Nord Pool Spot and NASDAQ OMX partnered together to form liquid and transparent spot and financial markets 5 ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Electricity Market Examples Nord Pool Spot and NASDAQ OMX Nord Pool Spot NASDAQ-OMX Board of Directors • Consists of a chairman and 3 board members Management Team • Consists of; • CEO • Director of markets and operations, • General Counsel and head of market surveillance, • Director of European integration, • Head of communications and an IT director Customer Advisory Board • High level advisory board for all activities related to the operations of Nord Pool Spot AS. • Made up of power traders and industry representatives, it reports to Nord Pool Spot's board of directors. Market Surveillance • Plays a key role in securing transparency and confidence in the market. • Continuously follows the trading activities and price formation 6 Supervisory Authorities Nord Pool Spot and Nasdaq OMX market surveillance functions have been separated Supervision Sanctions any breach However, both markets continue to share information on markets Reports Market Surveillance Monitoring Trading Activity Nord Pool Spot and NASDAQ OMX constantly share information about their respective markets to efficiently monitor the markets ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Electricity Market Examples Nord Pool Spot Although Nord Pool Spot is 100% owned by the Nordic TSO’s, it is neutral, transparent and independent in all its operations Shareholder Structure 20% 30% 20% 30% Statnet SF Svenska Kraf tnät Fingrid Oyj Energinet.dk Nord Pool Spot AS is governed by the regulations of Norwegian Water Resources and Energy Directorate (NVE), which is the energy regulatory authority of Norway, whereas NASDAQ OMX is supervised by Financial Supervisory Authority of Norway, Finanstilsynet 7 Liquidity Transparency • Prices available at all times • Bid- and Ask-spreads and volumes are visible for all • Adhoc-information Market Surveillance • Compliance with regulations and transactions/Insider trading Members Equality • Information (UMM, prices, other external and internal info) ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Electricity Market Examples APX-ENDEX APX – Endex is owned by gas and electricity TSO’s and it has supervisory and management boards for its general policies and strategies to be set Shareholder Structure Organisation Structure APX Endex Holding B.V. 3.07% 20.00% Reports on strategy 56.05% 20.88% Board Committees Reports results Audit Committee TenneT Holding B.V N.V. Nederlandse Gasunie Elia N.V Fluxys Europe B.V. The shareholders of APX-Endex are Dutch electricity&gas TSOs, and Belgian electricity&gas TSOs. 8 Shareholders 3 Members from Supervisory Board Supervisory Board Selection, Appointment & Remuneration Committee Some members are the shareholders of the APX Endex Reports results Executive Board CEO, CFO, COO, 2 Directors Advice Development Boards Includes members of the market participants ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Electricity Market Examples EPEX EPEX is equally owned by EEX and Powernext, where shareholders of Powernext are the TSOs and energy utilities of Europe Shareholder Structure of Powernext 6.15% 5% 52.83% 6.72% 6.72% • Market Surveillance is significant both in spot and derivatives markets and is trusted with monitoring and reporting the activities and transactions in the market. 6.83% 9 EDF Electrabel Ensures a transparent and reliable wholesale price formation mechanism. Facilitates a more effective governance and implementation of market coupling projects. 5.82% HGRT • Shareholder’s being TSO and energy utilities; Standardizes and harmonizes trading and clearing processes. 4.94% 4.99% • EPEX Spot has been created through the merger of the power spot activities of the energy exchanges Powernext SA in France and EEX AG in Germany. GDF Suez Total E.ON Alpiq Enel 3GRT ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Electricity Market Examples EEX Launch of Power Spot Market (LPX, Leipzig and EEX Frankfurt 1998 Liberalization of the European Energy Markets in 1998 2000 EEX and Powernext agree on an extensive cooperation in power spot/derivatives trading; Establishment of EPEX Spot SE in which the exchanges integrate their power spot markets EEX launches Spot and Derivatives Trading of Emission Allowances within the European Emission Trading System (EU ETS) 2002 2005 Merger of the former Leipzig Power Exchange LPX and the EEX, Frankfurt to the European Energy Exchange AG 2007 EEX launches natural gas trading (Spot and Derivatives Market) in the H-gas market areas BEB and EGT, now GASPOOL and NetConnect Germany (NCG) 2008/09 • Currently, due to a huge liquid market, the prices quoted on EEX are used as reference prices across Europe. • In 2010, after only 10 years after its establishment , EEX has become a leading European trading platform for energy an related products with in total 267 participants from 22 countries. Since Leipzig Power Exchange LPX did not have enough liquidity to continue with market operations it merged with EEX, Frankfurt to form a more liquid market. 10 ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Electricity Market Examples EEX At present, EEX has 46 shareholders including energy companies, banks and other financial institutions Shareholder Structure • EEX AG’s biggest shareholder is Eurex Zurich AG with 56% of the shares Eurex Zürich AG LVV Leipziger Versorgungsund Verkehrsgesellschaf t mbH 19.66% Freistaat Sachsen 3.48% 4.35% 56.14% 4.50% 4.51% 7.38% Alpiq Trading AG RWE Beteiligungsgesellschaf t mbH E.ON Energy Trading SE 11 ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Electricity Market Examples Governance of EEX and EPEX EEX AG Organizational Structure EPEX Spot Organizational Structure EEX AG Holding Exchange Supervisory Authority Instructions EEX AG and Powernext Executive Board Supervisory Board (CEO, CFO and COO) Reports findings Shareholders CEO of the Executive Board is a member Appoints Cooperation EEX Exchange Sanctions Committee Reports findings Market Surveillance Appoints the head of Market Surveillance EPEX Spot Exchange Council EEX (24 members including energy companies & financial inst.) Establishes Recommends the head of Market Surveillance Continuous monitoring Reports on recommendations Trader Working Committees Issue recommendations Board of Directors Management Board Exchange Council (16 members including energy companies, financial inst. & academia) Reports findings Reports findings Market Surveillance EEX AG and EPEX Spot works closely on every level to reduce the risk of fraud and achieve well functioning markets. 12 ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Examples from Turkey 13 Turkish Airlines (THY) Turkish Airlines public offering process: With law no.6623 it was governed under private law 1933 1955 With law no.2186 it was established as a government enterprise under the Ministry of Defense 14 1956 In official gazette no.18570, it was reestablished as state owned enterprise under legislative decree no.233 1990 1984 With 60 million capital it was affiliated to Ministry of Transport under the name of “Turkish Airlines Incorporated Company” As the law no. 4046 came into effect with the article no.35 of the same law it was put under privatization administration as a state economic enterprise. 1994 With the cabinet decree no. 90/822 published in official gazette no.20646 the company was put under the scope of law no.3291 to be privatized. With decision no.90/18 the new status of the organization was accepted and at 5 November 1990 was registered to trade registry. At that date the shares open to public was 1.8%. Turkish Airlines is a good example when the shareholder structure and governance of the company is taken into account, however it was subject to privatization 28.75% of the shares belonging to privatization administration was opened to public and the state owned shares dropped to 49.12%. 2004 2006 23% of the shares that belonged to privatization administration was opened to public and the state owned share dropped to 75.18% • Share transfers are subject to provisions of Turkish Commercial Code, Capital Market Legislation and Civil Aviation Act. • The C group shares were given to privatization administration under law no.4046 and can be transferred to another state owned enterprise. • Board of directors can increase the registered capital as much as the equity ceiling by issuing new shares if it sees fit. • Unless the newly issued shares are sold out no new shares can be issued. ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited ISE Settlement and Custody Bank Inc. (Takasbank) Similar to restructuring of MFSC (PMUM); ISE Settlement and Custody Bank Inc. was a department operating under ISE, soon it was established as a separate company without a privatization process Transfer of assets/staff • All of the assets and the personnel, who requested, was transferred to the newly established bank during restructuring period 15 Organizational Structure (Board Members) Shareholder Structure • Members, except ISE, can hold maximum 5% of the shares • 80 shareholders in total, where the biggest shareholder is ISE with 36.65% • ISE holds A type shares, which cannot be transferred. • • • • Chairman has to be an ISE Member 4 ISE Members (A type) 1 Capital Markets Board representative 5 members from intermediary firms and banks (2 intermediary firm member+2 bank member + 1 member determined mutually) • 1 general manager selected by the exchange members ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited Suggestions 16 Key Points Regarding Establishment Process of Turkish Energy Exchange Autonomous Energy Exchange? Harmonization with EU Legislation, Compatible with international markets Personal benefits What should be considered? Regulation and Supervision Shareholder Structure Being autonomous Transparency Articles of Association Transfer of assets, staff, contracts Price Signal for Investments Regional integrated markets Organizational restructuring Infrastructure Turkey considered knowhow transfer form Nordic Markets while establishing spot markets since 2005 and further knowhow and experience from EEX is being planned to reach an autonomous and integrated Turkish Energy Exchange. 17 ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited ©2012 Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited