Falling Turkish lira ‘to affect’ energy prices

Falling Turkish lira ‘to affect’ energy prices

ANKARA – Hürriyet Daily News
The weakening of the Turkish Lira might lead to energy prices rising and funding problems in power generation privatizations, the head of Turkey’s energy market watchdog has said.

The steep rise in foreign exchange rates would bring structural negativities along and will alter the cost calculation made by the government and companies, outgoing EPDK Chariman Hasan Köktaş said in a meeting he held on Jan. 6 ahead of leaving the post.

The lira, which weakened to another record low yesterday for the fifth time in two weeks, has lost 7.6 percent in value against the U.S. dollar since the beginning of the graft probe that hit the politics and the markets on Dec. 17.

“Feasibility studies to be made with new currency levels will be reflected in energy prices,” Köktaş said.
He also said energy market investments would be adversely affected as well.

“It might create problems in power generation privatizations. It might also cause delays in investments from scratch due to project cost increases,” he stated.