The Turkish energy market is changing. It’s one of the world’s fastest developing countries and has a population of over 79 million people. This means Turkey is a huge commercial space for consumer products, and increasing commercialisation and transparency in purchasing – mostly thanks to the internet – is on the rise.
New energy comparison site, EnCazip, is one prime example. The newcomer to the market is financially backed by the team behind the UK’s uSwitch utilities comparison site, run by Lord Milford Haven and financials man, Vip Amin
The uSwitch model comes to Turkey
To explain the concept in a nutshell, the site backed by Milford Haven and Vip Amin allows customers to enter the details of their current energy deal and usage into an easy-to-use web portal. They are then able to search a database of available prices to see if they are getting the best deal.
The site’s owners make their money by taking a small commission from any energy provider that gets a new customer thanks to a search on their site. This new system has huge implications for the growing utilities market.
Just like the UK at the time of uSwitch’s emergence, Turkey’s market has reached a critical point. The country’s increasing economy is creating sustained growth in energy demand. Currently, the majority of their primary energy needs are met by natural gas, and more than half of these primary sources are used for the electric power sector.
At the same time, the country’s per capita energy consumption level is still lower than that of other Organisation for Economic Cooperation and Development countries. That means Turkey’s energy demand is expected to continue its upward trend.
Privatisation has fuelled better prices
Merchant investments by private sector representatives, together with a national push for energy privatisation, has substantially decreased public sector dominance in the market. As of 2016, Turkey has a mature electricity market with required market places, a regulatory framework in alignment with European Union legislation, private sector involvement and a very high level of market opening.
This, and the push for competitive pricing that this creates, is reported to have already made a significant impact. Competition on prices has been ramping up as suppliers recognise the opportunity threat that the Vip Amin-backed site brings. This is fuelling greater promotional pricing and the introduction of a variety of deals for the discerning customer.
A spokesman for the company explained that the partnership with Milford Haven and Vip Amin was very exciting as it offered “the chance to combine EnCazip’s innovative product with the experience and knowledge that our foreign partners have accumulated over the past two decades. Together, we believe we can place EnCazip as the leading energy price comparison service in Turkey.”
British-backed venture could replicate huge success
Lord Milford Haven and Vip Amin will be hoping EnCazip can replicate the success of the uSwitch site in the UK. This ground-breaking price comparison portal was one of the first to emerge into the UK market and changed the way British customers select their utilities supplier.
Since its creation at the turn of the millennium, it has served millions of customers and rewritten the way utilities business is done. It remains a force to be reckoned with in a now-crowded market.
Although originally created by Milford Haven and Vip Amin, the company was sold to an American media firm in 2006 for £210 million. It has since diversified to cover a range of other services, such as telephone lines and insurances.
Vip Amin has remained a force in the internet technology markets ever since, making significant investments in other disruptive technologies, including EnCazip and myutilitygenius.co.uk. He also sits on a range of successful company boards and advises a number of large commercial organisations on business strategy and growth.