The Energy Market Regulatory Authority
("Authority") in Turkey has published
procedures and principles for calculating the basis parameters of
electricity distribution tariffs. The Authority published
Procedures and Principles for Determining Base Efficiency
Parameters for Electricity Distribution Companies' Tariffs
("Procedures and Principles") on 24
November 2015, entering into effect on the same date.
Significant provisions of the Procedures and Principles
The Data Envelopment Analysis method must be used to calculate
the efficiency level which is used as the basis of tariff
Within the scope of the Communiqué on Regulation of
Distribution System Revenue
("Communiqué"), efficiency levels
must be calculated by using operation cost items, in accordance
with the Communiqué.
Efficiency calculations applied to electricity distribution
companies under the efficiency model cannot be less than 5 years
and more than 10 years.
When calculating operations cost, variables include the length
for the baseline period, transformer capacity, transformer
quantity, energy sum logs in to the distribution system, peak
demand, geographical space, number of subscribers in the
distribution area, as well as other similar variables.
Uncontrollable base operation costs within scope of the
Communiqué are excluded from base operation costs.
Environmental factors include density of users (user/km2),
household consumer consumption ratio, socioeconomic developmental
index, realized lost energy ratio, as well as other similar
A specified margin of error applies when calculating efficiency
parameters. Variables which do not meet this margin are not
included in the ultimate model.
Data used for efficiency calculations can be presented in any
The Authority considers submitted data, making comparisons to
data from previous years and other submissions.
Please see this link for full text of the Procedures and
Principles. (Only available in Turkish).
Information first published in the MA | Gazette, a fortnightly legal update
newsletter produced by Moroğlu Arseven.
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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