Turkey's Energy Market Regulatory Authority
("Authority") has updated and amended certain elements of
the template agreements for use and connection to the electricity
distribution system. Changes apply to the Distribution System Use
Agreement, the Distribution System Connection Agreement for
Consumers, as well as the Distribution System Connection Agreement
for Legal Entities That Carry Out Production Activities.
Distribution System Use Agreement
Changes to the Distribution System Use Agreement include:
The provision enabling the legal entity holding the
distribution license to cut off a consumer's electricity has
changed. With the new provision, the Distributor Company will
off-set the debt from a consumer's deposit payment if the
consumer fails to make payment for eight days after the Distributor
Company notifying the consumer. Off-setting will also occur if the
user is a legal entity that carries out production activities. If
the deposit payment is not enough to cover the debt, a
disconnection notification will sent to the legal entity. If the
legal entity fails to make the payment within eight days of the
notification, then the legal entity's electricity will be cut
Distributor Companies now require the Authority's approval
to assign, transfer and pledge rights and obligations under the
Distribution System Use Agreement.
Parties must take the necessary precautions to protect
commercially significant information obtained as a result of
legislation, market activities or agreements, and not disclose this
to third parties (including shareholders or affiliates).
Parties must make a deposit payment to the Distributor Company
as a warranty of their payment obligations, within certain limits.
The deposit can be cash or a definite and unlimited in time bank
Distribution System Connection Agreements
Changes to the Distribution System Connection Agreements
A consumer's facilities must not be connected to the
distribution system before execution of a facility agreement
between the parties.
A user which fails to fulfill his obligations due to a force
majeure event must submit a report to the Distributor Company
within 30 days after the start of the force majeure. The report
must include the reasons, nature, duration, and current status of
the force majeure, as well as precautions taken.
If the Distributor Company undertakes a financial obligation
for the system connection, it must pay back the deposit amount to
the user within 30 days after system connection and fulfillment of
The agreement will be deemed terminated if the user makes a
misstatement about ownership of the facility that is/will be
connected to the system. In such a case, the user must compensate
the Distributor Company for any damages incurred.
Notifications about the agreement must be made via a notary
public. The Distributor Company must announce any address change on
its website, whereas the user must notify the Distributor Company
of any address change within ten days of the change occurring.
The Authority's decision number 6193 dated 30 March 2016 was
published in Official Gazette number 29686 on 16 April 2016. Please
see this link for full text of the Template
Agreements (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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