The general principles setting out the legal requirements for
licensing are defined under Law No 4646 of Turkey. Accordingly, the
entities to engage in market activities shall obtain a license for
each activity and for each facility respectively, if the said
activities are to be conducted in more than one facility, before
starting operation. Any entity holding more than one license or a
legal entity that conducts the same activity in more than one
facility, should keep separate accounting records for each activity
or facility subject to a license.
The licenses and certificates shall be granted for at least ten
years and a maximum of thirty years whenever issued and the
entities holding a license are obliged to keep their facilities,
legal books and records available for the auditing of the Energy
Market Regulatory Authority ("EMRA") in a timely manner
with all kinds of information and document required in order to
perform its activities.
The provisions i) 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; ii)
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 and the provisions regarding the methods to be applied in
determining the pricing principles stated in the Law No 4646, iii)
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, iv) 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, v) 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, vi) regarding the cancellation
and termination of a license, vii) regarding the amendment to a
license, viii) regarding the fees payable by a license holder to
the EMRA and the terms of such payment, ix) 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, x) regarding the obligations of the license holder to
comply with all instructions given by the EMRA, xi) regarding the
activities that can be conducted within the scope of the license
without the consent of the EMRA, xii) regarding which disputes
related with the activities within the scope of the license shall
be settled by the EMRA, xiii) regarding under which terms,
conditions and circumstances the rights and obligations arising
from the license shall be invalid; xiv) which will provide for the
performance of service in accordance with technical requirements
should be included to the licenses.
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.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Turkey has amended the Electricity Market Law numbered 6446 to promote use and security of domestic energy resources. Under the amendments, planned capacity mechanisms must give priority to local energy sources.
Turkey's energy regulator previously ruled (decision numbered 5709, dated 30 July 2015) that a total capacity of 2,000 MW would be reserved in the period up until 2020 for wind power pre-license applicants to connect to the grid.
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