The Turkish Energy Market Regulatory Authority (“Authority”) has published updated procedures and principles for the state-owned transmission company to determine transmission system use and operation revenues. The Communiqué Regarding Transmission Revenue Regulations (“Communiqué”) was published in Official Gazette number 29578 on 30 December 2015, entering into effect on 1 January 2016.

Under the Communiqué, transmission costs must be determined based on the expenditures necessary for the Turkish Electricity Transmission Company (“TEİAŞ”) to carry out transmission system activities. These include system use and operation costs, as well as other costs which may arise in accordance with relevant legislation. The Communiqué defines and outlines calculation methods for revenue necessity, operation costs, investment costs, maximum revenue, revenue gap adjustment, as well as investment gap adjustment.

TEİAŞ must submit a method declaration to the Authority, including information about items specified in the Communique, along with determination of which items will apply for different user groups. The Authority has discretion to make any necessary changes to the method declaration.

Revenue necessity, maximum revenue and revenue gap adjustment are considered when determining transmission system use activity as well as system operation activity. However, investment costs and adjustment are only considered for transmission system use activities.

The Communiqué repeals the earlier Communiqué Regarding the Transmission System Revenue Regulations and the Communiqué Regarding the Transmission System Operation Revenue Regulations (both published in Official Gazette number 24843 on 11 August 2002).

Please see this link for full text of the latest Communiqué (only available in Turkish).

Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.