Turkey's Energy Market Regulatory Board ("Board") has announced procedures and principles for natural gas connection and service fees, as well as maximum connection rates and service fees for 2017.
Decisions numbered 6807 and 6810 were issued on 26 December 2016 and published in Official Gazette numbered 29940 on 6 January 2017, which will apply from 1 January 2017 onwards, entering into force on the publication date.
The procedures and principles aim to determine:
- Natural gas connection tariffs
- Fees for services offered under the Natural Gas Market Distribution and Customer Services Regulation
- Security deposit arrangements
- Application of tariffs and fees.
Distribution companies must apply the subscriber connection fee determined by the Board. The connection line for eligible consumers can be made by the distribution company or certificate holders, depending on the eligible consumer's choice. The connection fee will be freely determined among the parties involved.
Distribution companies can receive a security deposit (determined by the Board) to secure their receivables. It can be collected in cash or by instalments.
Eligible consumers can now submit a guarantee letter as the security deposit, instead of cash. Those who have already given a security deposit in can replace it by the guarantee letter, if they wish. Security deposits will be refunded upon request, if the necessary conditions are fulfilled within 15 days of the request.
For buildings reconstructed after demolition, the residence's existing connection and gas usage contracts will now be terminated. Any previously collected security deposits will be refunded. The existing right holders (whose gas usage contracts have been terminated due to demolition) will not be charged for a connection fee if they sign a new connection contract requesting natural gas be supplied to the new building.
If a natural gas meter malfunctions or is suspected to be inaccurate, the customer can ask the distribution company to examine the meter. If the customer is found to be right at the end of the examination, the distribution company will bear the costs of the examination.
Legal entities which received natural gas distribution licenses via a tender by the Energy Market Regulatory Authority must not exceed the price ceiling for connection fees, specified in the tender.
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.