Turkish business group calls to privatize energy production

The call came the same day as the government announced it did not intend to privatize any more of the country’s electricity grids this year.

Güncelleme: 16:32 TSİ 22 Mayıs 2008 Perşembe

ISTANBUL - Turkey’s peak business association has called on the government to speed up the pace of privatising the country’s energy production sector, saying the move was directly linked to the creation of a free market. In a report entitled “Energy Strategy”, released on Thursday, the Turkish Industrialists’ and Businessmen’s Association (TUSIAD) said the privatization of power production should not be delayed until the privatization of Turkey’s electricity distribution grids was carried out.

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The electricity generation sector should be privatized immediately so as to boost free market conditions, the report said.

“There is need for a solid strategy in power generation that would result in confidence and to wipe out uncertainties,” a statement accompanying the TUSIAD report said.

”Turkey’s Energy Ministry plans to boost investments to increase capacity in the energy sector by 150 percent before 2020. In order to reach this goal, Turkey needs to speed up the privatization process,” TUSIAD said.

The delay in the privatization of the energy sector creates uncertainties over energy supply in Turkey, the study said.

A liberal energy market is essential not only for the Turkish business community but also for Turkey’s prospective EU membership, TUSIAD said.

Earlier Thursday, Privatisation Administration chairman Metin Kilci said there were no plans to sell off any more power grids this year beyond the four whose sale has already been announced.