Procedures and principles have been introduced in Turkey for
calculating target loss rates for determining technical or
non-technical losses for electricity distribution companies, under
the Electricity Market Tariffs Regulation. The Energy Market
Regulatory Board published its decision (dated 26 November 2015)
regarding the Procedures and Principles on Determination of the
Electricity Distribution Companies' Target Loss Rates
("Procedures and Principles") in
Official Gazette number 29563 on 15 December 2015, entering into
effect on the same date.
Under the Procedures and Principles, a distribution
company's actual annual technical and non-technical loss rates
for previous three years ("Actual Loss
Rate") are taken into account when calculating the
company's target loss rate ("Target Loss
Rate") for the coming year. Electricity leak costs
billed for the relevant year will also be taken into
The Procedures and Principles outline different equations for
determining the Target Loss Rates. Factors which determine the
relevant equation for a given electricity distribution company are
the company's weighted average Actual Loss Rate for the
previous three years, compared to:
The threshold value determined by the
Energy Market Regulatory Board, and
The national Actual Loss Rate for the
previous three years
The Procedures and Principles state that if a distribution
company's calculated Target Loss Rate for a tariff year is
lower or higher than its Actual Loss Rate for that year, the
difference will not be subject to any correction during tariff
Please see this link for full text of the Procedure and
Principles (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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