The Turkish Energy Market Regulatory Authority
("Authority") has published updated
procedures and principles for supply companies to determine the
base costs for retail price calculations, as well as elements which
can be used during calculations and corrections. The
Communiqué Regarding Regulation of Retail Prices for Energy
("Communiqué") was published in
Official Gazette number 29578 on 30 December 2015, entering into
effect on 1 January 2016.
Supply companies must calculate energy retail prices in line
with an equation outlined in Article 6 of the Communiqué.
These prices must be determined based on the activities which are
necessary for the relevant supply company to carry out energy sales
activities (Article 5 of the Communiqué), including
operation and energy costs. Supply companies cannot consider costs
which are not specified. The Communiqué outlines the
allocation keys to use when categorizing activities, as well as
variables such as number of consumers and consumption amounts.
Retail sales revenue must be calculated for each tariff year,
prior to the implementation period, based on the regulated
operation cost and the depreciation charges specified for retail
sale activity (Article 7 of the Communiqué).
For consumers which are subject to regulated retail tariffs,
supply companies can only charge specified amounts or amounts which
are collected in accordance with legal obligations (Article 9 of
the Communiqué). These amounts are determined under the
Communiqué, related laws, as well as by the Authority. The
Communiqué includes a non-exhaustive list of revenues which
are not subject to regulation, such as interest and incentive
Supply companies must present the necessary data to the
Authority in the requested format (Article 16 of the
Communiqué). The Authority will calculate the amount in
accordance with the equation outlined in this article. The amount
will be considered when calculating the revenue ceiling for 2016,
under Article 11 of the Communiqué. The energy supply cost
will be calculated in accordance with the equation given under
Article 17 of the Communiqué.
The reference retail price for 2016 is set at 0.7233 kr/kWh
under the circumstances outlined in Provisional Article 3 of the
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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