Reforming The Electricity Market: A Balancing Act

The first effects of private sector involvement in the electrical power sector were observed in 1986 with the enactment of Law No. 3996 regulating the build-operate-transfer model and welcoming the private sector – including foreign capital – into the electricity market. Prior to that time, the electricity market was run by the state, following passage of the nationalization acts from 1938-44. Whereas the first attempts at liberalizing the electricity market had been observed long before, actual liberalization of the electricity market took place only with the enactment of Law No. 4628 on the Electricity Market in 2001.

New Mechanisms for Balancing Supply and Demand

Developments in the industry, high demand for good quality, and the need for liberal electricity pricing increased demand for a market with a high level of private sector participation, especially in the generation industry. Consequently, a need arose to restructure the electricity trading market to