Aksa shutting down Turkish power plant citing pricing problems

Aksa Enerji, a Turkish power producer, is closing down its 115 megawatt power plant in western Turkey complaining of pricing problems.

The company has applied to the country’s energy market regulator to cancel its license for the plant that it built in the Manisa region.

Opportunities to secure competitive pricing for electricity production in Turkey were declining, Aksa said in a statement to the Istanbul Stock Exchange on Wednesday. Instead, the company will pursue projects abroad that bring revenue in foreign currency and high margins, it said.

The Turkish authorities have sought to curtail electricity price increases to help spur economic growth and rein in inflation. As a result, profits in the industry are declining and several large firms have sought to restructure foreign currency loans that they used to build power plants and expand their operations.

Aksa Enerji fell 1.9 percent to 3.09 liras at 11:07 a.m. in Istanbul. The shares have lost 18.2 percent of their value over the past year.