The Turkish energy market has undergone a wide phase of deregulation, allowing millions of people to change their suppliers for a better deal. Thanks to an investment from the founder of the UK’s uSwitch.com, George Mountbatten, this can be an easy, simple and cash-saving process for Turkish residents.
The reforms in Turkey have dropped the annual usage needed to be able to swap to just $120 per month. According to the regulation of the Energy Market Regulatory Authority in 2016, this ‘eligible consumer limit’ covered 81% of total consumers.
Deregulation means more people can change suppliers
The market used to be very tightly controlled, and people had no choice but to take supplies from government providers. The new regulations withdraw the former subsidies but allow regular users (or individuals) to access better prices. By opening up the options, at least six million people could have accessed better value contracts in 2016.
The situation in Turkey is very similar to the conditions under which uSwitch was founded. The British market regulations were loosened in 2000 and George Mountbatten and his team realised there was space for an easy-to-use portal where people could enter their details to compare prices. Mountbatten went on to sell the enterprise for over £200 million in 2006.
Just like uSwitch in the UK, Turkey’s first electricity tariff comparison and supplier change website, EnCazip, is looking to save people money. This online service helps people to find the most attractive electricity tariffs by providing the right information and clear explanations to consumers.
Founded by Cagada Crimea and Onur Orakçıoğlu in November of 2013, EnCazip brings a new dimension to the Turkish market.
The partnership began when one of the founders reached out to the UK businessman George Mountbatten via LinkedIn to ask for advice. He explained he had an idea that the Turkish market was ripe for innovation and a model similar to uSwitch could be highly successful. George Mountbatten believed in him and with his investment the website opened for business in 2016.
EnCazip helps people understand how they pay for energy
To explain it simply, the website helps people to break down their bills and look at the prices they could get from a range of different suppliers. This includes things like unit prices, monthly bills, contract term and discount rates so people truly understand what they’re getting.
As the system is fairly new, the website content also supports the changing process by giving additional information on how switching works. This helps guide customers through from click to changeover and helps them set up their accounts quickly and easily. The company claims to offer savings of around 20% per year, that’s up to two months of bills.
Price comparison sites have made a big change to the energy market
The site is moulded around several other big online comparison sites that have already changed the market for energy across the world. In fact, the George Mountbatten team investing in EnCazip has other interests in MoneyGuru, in Brazil.
The link between all of these companies is in fact stronger than just George Mountbatten. Former uSwitch CEO Andrew Salmon, and former financial director Vip Amin are also on board. They created the kind of business that people were very keen to get involved in.
In fact, when uSwitch.com came onto the market there was huge interest in acquiring it. The eventual buyer was the American media firm, EW Scripps, but there was interest from big firms such as the group behind the Daily Mail. George Mountbatten was thought to own around half the shares at the time of the £200 million sale.