- within Energy and Natural Resources and Criminal Law topic(s)
On February 14, 2026, the Regulation on Transparency and Market Distorting Practices in Energy and Environmental Markets ("Regulation") constitutes an important regulation that comprehensively reshapes the transparency, oversight, and market integrity regime for energy and environmental markets in Turkey. The Regulation aims to strengthen the principles of reliability, transparency, efficiency, stability, and competition in the markets; eliminate asymmetries arising from access to inside information; and prevent market-distorting behavior.
This Regulation, which touches upon a new regulatory area, is expected to have structural impacts, particularly in terms of the manner in which energy trading activities are conducted, the information disclosure obligations of market participants, and the administrative sanctions regime. In this respect, the regulation can be considered part of a systemic transformation that could directly affect corporate compliance, internal control, and risk management processes in energy and environmental markets, going beyond a mere technical change in secondary legislation.
Purpose and Scope of the New Regulation
The purpose of the Regulation is to ensure that trade in energy and environmental markets is conducted in a reliable, transparent, efficient, stable, fair, honest, and competitive manner by preventing market-distorting behaviors that may arise in the markets and by determining the procedures and principles regarding the duties, authorities, and responsibilities of the relevant parties and the Energy Market Regulatory Authority ("Authority").
The scope of the Regulation covers the futures electricity market, day-ahead market, intraday market, balancing power market, ancillary services market, futures natural gas market, spot natural gas market, emissions trading system market, organized renewable energy source guarantee market, and matters related to bilateral agreements made for wholesale sales in these markets. However, contracts traded on the futures and options market operated by Borsa Istanbul A.Ş. and bilateral agreements made with end consumers are excluded from the scope.
Internal Information Platform
Pursuant to the Regulation, Enerji Piyasaları İşletme A.Ş. ("EPİAŞ") is required to operate a central data platform called the "Internal Information Platform" for the disclosure of internal information in energy and environmental markets, to enable market participants to conduct market activities within a framework of equal opportunity, and to prevent information asymmetry among market participants. Data constituting internal information includes information related to the planned or unplanned unavailability of facilities belonging to market participants, as well as information regarding production, storage, consumption, and transmission capacity and usage, and other information that could influence a prudent market participant's decision to trade or bid on energy and environmental products.
The minimum data to be published on the Internal Information Platform, along with the format and timing of such publication, shall be determined by a decision of the Energy Market Regulatory Board ("Board"). Measures to ensure data security on this platform shall be taken by EPİAŞ. Market Participants shall be responsible for providing the necessary technical infrastructure and access requirements for the information to be published on this platform and shall notify EPİAŞ of the persons authorized to perform transactions on the platform.
Transparency Platform
Pursuant to the Regulation, EPİAŞ is required to operate a central data platform under the name "Transparency Platform" to publish general market data such as prices, volumes, and similar information, excluding data of an internal nature in energy markets and environmental markets. As with the Internal Information Platform, the data to be published, as well as the format and timing of publication, will be determined by a decision of the Board. However, the provisions of the second paragraph of Article 10 of Climate Law No. 7552 remain reserved. Pursuant to the relevant provision, free allocation data, verified annual greenhouse gas emission values, and information regarding the allocation delivery obligations of facilities may be shared with the public in accordance with the decision of the Carbon Market Board in order to ensure market transparency.
Under the Regulation, data to be published on the Transparency Platform will be requested by EPİAŞ from the data-owning institutions. EPİAŞ is also authorized to sign protocols to obtain data from relevant institutions and organizations that are not market participants. Data of a commercial secret nature and individual information that directly reveals the identity of Market Participants cannot be published on the Platform. However, data that is important for the market, even if it inevitably discloses the identity of participants, will be exempt from this rule. EPİAŞ will again take the necessary measures to ensure data security on the platform. The Regulation grants EPİAŞ the right to charge fees for additional services related to the data to be published on the platform.
Disclosure Obligation, Breach, and Misuse of Inside Information
Market Participants are obligated to disclose inside information and data of this nature, as determined by the Board, in a complete, accurate, and specified format on the Inside Information Platform without delay. Any subsequent changes to the data must also be disclosed on the platform without delay. It should be noted that Market Participants' obligation to disclose information to the public under the Capital Markets Law (if any) remains reserved.
Market participants may delay the disclosure of inside information to the public under certain conditions in order to protect their legitimate interests. These conditions are: the delay must not mislead the public, the market participant must ensure the confidentiality of the information in question, and no decisions regarding the purchase or sale of energy and environmental products may be made based on the information in question. It should be noted that all of these conditions must be met. Pursuant to the Regulation, market participants must immediately notify EPİAŞ of the reasons for the delay via electronic means. After being notified of the reasons for the delay, EPİAŞ is obliged to promptly report these reasons to the Authority and to take the necessary measures to ensure the confidentiality of the information reported to it. Once the reasons for the delay have been resolved, the market participant is obliged to disclose the internal information in question to the public in accordance with the procedure and to report the delay and the underlying information in the disclosure. However, if the event to which the delayed disclosure of internal information relates does not occur, the disclosure may not be made.
The Authority is authorized to investigate the reasons for delay specified above and, if it finds the reasons to be unjustified, to impose sanctions on the market participant. In the event of a breach of the obligation to disclose inside information, EPİAŞ is required to prepare a report detailing the breach and submit it to the Authority without delay.
The regulation also addresses the misuse of inside information. Persons possessing inside information shall not, directly or indirectly, for themselves or for the account of a third party, use that information to make an offer or transaction, alter or cancel an existing offer or transaction, establish a link between offers, or otherwise acquire or dispose of an energy or environmental product, or attempt to do so, by disclosing such information to any other person, or by recommending or directing another person to make an offer or transaction relating to energy or environmental products based on that inside information, or advising or directing another person to acquire or dispose of energy or environmental products based on inside information constitutes insider trading. In this regard, those subject to insider trading obligations are the managers of market participants who possess inside information, shareholders of market participants, persons who possess such information in the course of their business or profession or in the performance of their duties, persons who obtain such information by criminal means, and persons who know or should know that the information they possess is inside information. If the abuse is committed by a legal entity, sanctions will also be imposed on the natural persons involved in the decision to act on behalf of the legal entity.
Market Manipulation
Market manipulation is also clearly defined in the Regulation. With regard to energy and environmental products, it is defined as: acting alone or in concert with others, artificially raising or potentially raising the prices of these products to an artificial level, without a legitimate reason and without relying on accepted market practices; by arranging or through other deceptive or fraudulent means, giving or potentially giving false or misleading signals regarding the supply, demand, or price of these products; offering, trading, modifying, or canceling an existing offer or trade, or linking offers, or engaging in any other conduct, or attempting to engage in such acts, to the detriment of the market or market participants by exploiting the market or its rules is defined as market manipulation.
Disseminating information that provides or is likely to provide false or misleading signals regarding the supply, demand, or price of energy or environmental products through the media, including the internet, or by any other means, and engaging in activities aimed at doing so, shall also be considered market manipulation. For the act to be deemed committed, the person disseminating the information must be someone who knows or should know that the information is false or misleading. If market manipulation is carried out by a legal entity, sanctions will also be imposed on the natural persons involved in the decision to act on behalf of the legal entity.
Responsibilities of Market Participants
The responsibilities of market participants are also regulated under a separate heading in the Regulation. Market participants shall identify, process, protect, and disclose inside information in a timely manner on the Inside Information Platform; notify EPİAŞ of persons authorized to trade on the platform; immediately report any suspicions or information regarding market disruptive behavior to the Authority and the relevant market operator; providing requested information and documents completely and accurately; provide the necessary documents within the scope of market surveillance activities, and take the necessary measures to prevent market disruptive behavior.
Responsibilities of Market and System Operators
The Regulation governs the responsibilities of market participants as well as market and system operators. Each market operator is obliged to establish a market surveillance unit, employ sufficient personnel, and create its own surveillance system in order to ensure that transactions in the markets it operates are reliable, transparent, efficient, fair, and competitive, and to detect offers and transactions that violate the provisions of the Regulation. Market operators may request information and documents directly from relevant market participants within the scope of their oversight activities and are obliged to report the results obtained and any suspicious circumstances to the Authority without delay. Each system operator is responsible for providing the data necessary for market operators to perform their oversight duties; market and system operators are responsible for making the information necessary for the Authority's oversight and inspection activities continuously and in real time accessible and for establishing the infrastructure.
Supervision and Inspection
The Regulation stipulates that the Authority shall perform its supervision and inspection duties ex officio, upon notification or complaint, and that the identity of the applicant shall be kept confidential during the investigation of notifications or complaints. Furthermore, within this scope, it is stipulated that the Authority may request any information and documents from market participants and relevant natural or legal persons, examine electronic systems, gain access to them, take samples, audit transactions and accounts, obtain written and verbal information, prepare the necessary minutes, and, when necessary, conduct on-site inspections.
Administrative Sanctions
Pursuant to the ninth paragraph of Article 16 of the Electricity Market Law No. 6446, as stated in the first paragraph of Article 13 of the Regulation, a market participant who violates the obligation to disclose inside information, a natural person who commits market manipulation, and a natural person who commits insider trading shall be subject to administrative sanctions. up to 2,509,800 Turkish lira; and administrative fines of up to 25,098,000 Turkish lira shall be imposed on market participants who commit the act of market manipulation and market participants who commit the act of insider trading. If the violation under the first paragraph results in a benefit or causes damage, the amount of the administrative fine shall not be less than twice the amount of such benefit or damage. If the violation remains at the attempt stage, an administrative fine of up to half of the amounts specified in the provisions of the first paragraph regulating administrative sanctions shall be imposed. When determining administrative fines to be imposed up to a certain amount, the severity and duration of the violation, the degree of fault, the impact of the violation on the market and market prices, the existence of recurrence, the net sales revenue of the perpetrator in the relevant market in the calendar year preceding the date of the violation, and the cooperation shown with the Authority in revealing the truth regarding the act subject to the violation shall be taken into account.
Measures
Under the heading "Measures" in the Regulation, the measures that the Board and, in urgent cases, the relevant market operator may take against the parties concerned are listed in cases where market-distorting behavior is detected or where there are strong suspicions thereof. These measures include requesting additional collateral, placing a block on receivables arising from transactions in the relevant market, suspending or canceling the relevant offer or transaction, and imposing a temporary ban on trading in part or all of the relevant markets, and any other measures necessary to ensure the effective and healthy functioning of the markets. These measures are aimed at preventing and limiting the potential negative effects of the violation and shall be limited to those that are capable of achieving this objective. The measure applied by the market operator shall be submitted to the Board for approval immediately. The Board is authorized to decide on the continuation, modification, or removal of the measures submitted for its approval or to take other measures.
Conclusion
When the transparency mechanisms introduced by the regulation, the obligations regarding the disclosure of internal information, the sanctions regime for market manipulation and abuse, and the scope of oversight and supervisory powers are considered together, it is understood that the aim is to transition to a more strictly regulated and data-driven market structure in energy and environmental markets. In this context; it is critically important that market participants operating in the forward electricity market, day-ahead market, intraday market, balancing power market, ancillary services market, forward natural gas market, spot natural gas market, emissions trading system market, and organized renewable energy source guarantee market, as well as those engaged in bilateral agreements for wholesale sales in these markets, comply with the obligations set forth in the Regulation.
In particular, the management of internal information, the establishment of timely and accurate disclosure processes, the strengthening of internal control mechanisms to prevent market-distorting behavior risks, and the reassessment of managerial responsibilities stand out as priority compliance issues for market participants. In this context, the Regulation is expected to strengthen market confidence by increasing transparency and accountability in energy trading; conversely, it is expected to create higher regulatory pressure on companies in terms of compliance obligations and sanction risks.
As a result, this regulation marks the beginning of a new era that strengthens market integrity in Turkey's energy and environmental markets, requiring market actors to restructure their legal and operational compliance processes from a holistic perspective.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
