Procedures and principles have been updated for determining
revenues and tariffs for electricity distribution companies in
Turkey. These include applicable equations, as well as factors
which should be included or excluded during calculations. The
Energy Market Regulatory Authority
("Authority") published the
Communiqué Regarding Regulation of Distribution System
Revenues ("Communiqué") in
Official Gazette number 29567 on 19 December 2015, entering into
effect on 1 January 2016.
Charges for use of distribution system will be determined based
on the activities that are necessary for the distribution company
to carry out its distribution activities (Article 2). These charges
are calculated within the scope of procedures and principles for
tariff practices applicable to distribution companies, taking into
account the distribution revenue ceiling and demand forecast. The
distribution revenue ceiling includes the system operating revenue
ceiling and lost energy revenue ceiling.
The system operating revenue requirement will be calculated for
each tariff year, before the implementation period, in accordance
with an equation outlined in Article 6 of the Communiqué.
All amounts and elements of the calculation will be calculated with
reference to the implementation period's base CPI.
Information about investments must be presented to the Authority
in the requested format (Article 11). Approved investment expenses
include spending which is necessary to carry out distribution
activities and sub-activities, as well as other spending with
In principle, investment spending made during the implementation
period's tariff year must not fall below 65% of the investment
ceiling for the relevant year (Article 12). If spending falls below
this threshold, the Energy Market Regulatory Board may revise the
investment ceilings and/or revenue requirements for the relevant
Distribution companies can only charge consumers for services
specifically stated under Article 25.
The Communiqué includes a non-exhaustive list of revenues
which are not included when calculating revenues and tariffs
(Article 26). Revenues that have similar characteristics with those
listed under Article 26 will also be excluded during
Please see this link for the full text of the
Communiqué (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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