The electricity price equalization mechanism in Turkey has been
updated. The mechanism aims to partially or completely protect
consumers from price differences arising from cost differentiations
incurred by distribution and authorized supply companies (for their
regulated sales activities) in different regions. The Energy Market
Regulatory Authority published the Communiqué on the Price
("Communiqué") in Official
Gazette number 29579 on 31 December 2015, entering into effect on 1
Factors considered when calculating the support amount include
The amount of each distribution
company's income cap determined for the current tariff year
within the frame of related legislation and approved by the Energy
Market Regulatory Board, along with annual demand estimations (as
allocated to each retail sale period by taking into account the
seasonal haulage rates);
The income requirement for the
relevant retail company for the current tariff year, within the
frame of related legislation.
Significant points under the Communiqué include:
Parties to the price equalization
mechanism are (Article 6):
Authorized supply companies in each
The Turkish Electricity Trade and
Contracting Corporation ("TETCC").
The parties must transfer the support
amount determined by the price equalization mechanism through TETCC
Legal entity license holders must pay
the support amounts as a priority (Article 9).
If a party fails to make a payment,
the sanctions outlined under Article 16 of Electricity Market Law
Number 6446 will apply.
The Communiqué repeals the earlier Communiqué on
the Price Equalizing Mechanism in the Electricity Market, which was
published in Official Gazette number 28579 on 6 March 2013.
Please see this link for 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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