Electricity Derivative Contracts and Their Recognition

The development of trading spot and spot and derivatives where electric energy is traded still continues in Turkey. Electricity Generation Corporation, retail and corporate customer, vendors and investors are affected negatively while taking financial decision by ever-changing spot electric price fluctuations which are ever-changing each time period within day. Derivatives market to which electric energy is accepted as an underlying asset is the market where contracts of bargaining and selling electric energy are traded today in case of a price risk expected in the future. In this study, the working of spot and derivatives trading where electric energy is traded has been examined, and as electricity derivative contracts, forward, futures, option swaps and recognition of these trading, in compliance with TAS/TFRS, have been shown.