The Electricity Market Tariffs Regulation
("Regulation") was published in Official Gazette number
29453 on 22 August 2015. The Regulation enters into force on 1
January 2016, abolishing the Electricity Market Tariffs Regulation
dated 11 August 2002 ("Former Regulation"). The
Regulation includes rules and procedures for preparing, reviewing,
evaluating, amending and approving regulated electricity tariffs.
It amends the rules and criteria for preparation for transmission,
wholesale, distribution, connection, retail sale, market operation
and end consumer supply tariffs.
The Regulation states that distribution tariffs will consist of
distribution system usage prices and prices applied within the
scope of the distribution tariff. The Former Regulation limits
distribution system usage prices to investment, operation and
maintenance costs. Under the Regulation, the definition expands to
"all costs arisen during provision of the distribution
services, if suitable within the scope of the
Therefore, when determining the distribution system usage price,
the Regulation takes into account investment costs of activity,
operation costs, maintenance costs, lost energy supply costs,
transmission tariff costs, prices paid to relevant authorities and
other costs required to carry out the distribution activity.
The Energy Market Regulatory Authority determines the
distribution tariff, taking into account suggestions by
distribution companies. Separate procedures and standards for
tariffs can be adopted for each distribution area, or a single
tariff can be adopted nationwide.
Retail Sale Price
The retail sale price will be determined by considering the
costs of operation for provision of the supply services by the
relevant supply companies. Separate retail sale prices can be
adopted depending on consumers' connection status and their
purpose of electricity use.
Final Consumer Supply Tariff
The final consumer supply tariff will be prepared in line with
the applicable retail sales tariffs and market prices. It is
intended to encourage eligible consumers to enter into the
competitive market, while enabling a fair profit range to the
relevant suppliers. Nevertheless, the Electricity Market Regulatory
Authority can determine a separate retail tariff for consumers with
low consumption rates, taking into account social and economic
factors. The Regulation enables separate tariffs to be applied to
consumers with high and low consumption.
Transition Period from Cross Subsidization
Until abolishment of cross subsidization applications for energy
supply (temporary article 1 of Electricity Market Law number 6446),
the retail sales tariff will be applied as the final consumer
supply tariff. A new communiqué will be published within
three months of the cross subsidization application being
abolished. Until the new communique comes into force, temporary
prices approved by the Electricity Market Regulatory Authority will
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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