Turkey to cut regulated gas tariffs by 10pc
But the cut will not be reflected in regulated power tariffs, he said.
In late July, the minister had signalled a "significant" cut in gas prices ahead of winter. Most power market participants expected a gas cut between 7pc and 10pc, an Argus survey earlier this week showed.
Turkey will receive a 10-15pc retrospective discount for Iranian gas imports following an international court of arbitration ruling in its favour earlier this year. A final decision on the discount rate is expected by the end of this year, the energy minister said.
The October power base load traded at a record low of 134.75 Turkish lira/MWh following the minister's announcement. The contract changed hands at TL135.70-136.50/MWh earlier in the morning session.
Power market participants had expected an average fall of TL3.45/MWh in the power front-month contract in the event of a cut in gas prices.
The cut will also weigh on prices in the Turkish gas over-the-counter market, according to participants.
Lower gas prices will affect gas-fired power plants, most of which buy natural gas at regulated industrial tariffs — currently at 782 lira/'000m? (\\$258/'000m?) for eligible users that consume more than 300,000 m?/yr.
Turkish state-owned gas supplier and gas system operator Botas has kept regulated gas tariffs unchanged since 1 October 2014, with residential users paying TL848/'000m and organised industrial zones paying TL779/'000m?.