Turkey: General Principles of Licences and Certificates

Last Updated: 15 June 2015
Practice Guide by Herdem Attorneys at Law

The procedures and principles subject to which the licenses and the certificates to be granted by the EMRA and the provisions that must be included in such licenses and certificates at a minimum are as follows:

a) The procedures and principles that the licenses and certificates shall be subject to are as follows:

  • Legal entities which will engage in market activities must obtain a license for each activity and for each facility respectively, if said activities are to be conducted in more than one facility, before starting operation.
  • A legal entity which holds more than one license or a legal entity that conducts the same activity in more than one facility, must keep separate accounting records for each activity or facility subject to a license.
  • The procedures and principles governing license and certificate applications and the rights and obligations of legal entities holding a license and a certificate, assignment of the rights of a license holder, amendments to and duration of license, duration extensions and the events of cancellation of a license or a certificate by its holder, and the type of activity and the license and certificate fees to be determined according to the amount of natural gas transmitted, distributed and stored, shall be governed by a regulation.
  • Licenses and certificates shall be granted for at least ten years and a maximum of thirty years whenever issued.
  • Legal entities must pay to the EMRA the fees for obtaining, renewing amending, issuing a copy of a license or a certificate and the certificate and annual license fees.
  • Legal entities holding a license must keep their facilities, legal books and records available for the auditing of the EMRA, and must make them available for auditing when requested by the EMRA, and must provide the EMRA in a timely manner with all kinds of information and document required by the EMRA in order to perform its activities.

b) The provisions which must be included in licenses at a minimum are as follows:

  • Provisions that define the groups or categories regarding real persons and legal entities which will be provided services under a license and the types of activities to be performed.
  • Provisions stating that a holder of a distribution or transmission license shall provide the real persons and legal entities with the opportunity to have an access to and the use of the system without making any discrimination between system users having equal capacity.
  • Provisions regarding the methods to be applied in determining the pricing principles stated in the Law, the pricing principles to be applied to the sale of natural gas to the subscribers taking into consideration the requirements in the market and provisions with respect to the application of the formulas regarding the adjustments of the fees as may be necessary due to inflation and provisions with respect to auditing of the same.
  • Provisions ensuring that a license holder shall give complete and correct information to the EMRA, the distribution licence holder shall procure natural gas from the most economical source for the purposes of selling the same to subscribers and, when deemed necessary, shall prove that it affected the most economical purchase.
  • The rules to prevent reflection of service costs and the principles regarding measures to be applied in order to reduce the operation losses to the minimum, pursuant to the regulation.
  • Provisions regarding the cancellation and termination of a license.
  • Provisions regarding the amendment to a license.
  • Provisions regarding the fees payable by a license holder to the EMRA and the terms of such payment.
  • Provisions regarding the conditions in relation to the utilization by other persons of the facility and/or facilities owned or operated by the license holder in accordance with the purposes of the license, when deemed necessary.
  • Provisions regarding the obligations of the license holder to comply with all instructions given by the EMRA.
  • Provisions regarding the activities that can be conducted within the scope of the license without the consent of the EMRA.
  • Provisions regarding which disputes related to the activities within the scope of the license shall be settled by the EMRA.
  • Provisions regarding under which terms, conditions and circumstances the rights and obligations arising from the license shall be invalid.
  • Provisions which will provide for the performance of service in accordance with technical requirements.

c) The provisions which must at least be included in certificates are as follows:

  • Provisions that define the groups or categories of real persons and legal entities which will receive services under a certificate and the types of activities to be performed.
  • Provisions regarding the cancellation and termination of a certificate.
  • Provisions regarding the amendment of a certificate.
  • Provisions regarding the fees payable by a certificate holder to the EMRA and the terms of such payment.
  • Provisions regarding the obligations of the certificate holder to comply with all instructions given by the Board.
  • Provisions regarding the activities that can be conducted within the scope of the certificate without the consent of the EMRA.
  • Provisions regarding which disputes related with the activities within the scope of the certificate shall be settled by the EMRA.
  • Provisions defining the terms, conditions and circumstances, under which the rights and obligations arising from the certificate shall be invalid.
  • Provisions which will provide for the performance of activities in accordance with technical requirements.

Expiry of licenses and certificates: Licenses and certificates shall automatically expire at the end of their term if such term is not extended by the EMRA under the method determined in the license or certificate or upon the bankruptcy of the real person or the legal entity holding a license or certificate, and shall expire upon the approval of the EMRA in the case that the real person or the legal entity holding a license or certificate wishes to revoke from the license.

This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you have any specific questions on any legal matter, you should consult a professional legal services provider.

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