Electricity Market Regulations
Natural Gas Market Regulations
Comment
The Energy Market Regulatory Authority (EMRA) enacted 13 regulations between September and November 2002 in a bid to standardize and regulate the domestic electricity market. In addition, two draft electricity regulations were recently published on EMRA's website and market players were invited to comment.
Electricity Market Regulations
Regulation Amending the Electricity Market Licensing Regulation
The Regulation Amending the Electricity Market Licensing Regulation introduced new provisions and phrases in connection with legal entities that carry out (or intend to carry out) electricity generation or distribution activities under their existing contracts through transfer of operational rights, build-operate or build-operate-transfer modelled projects. Other amendments concern the terms and deadlines for applications to EMRA for licences.
Electricity Market Import and Export Regulation
The Electricity Market Import and Export Regulation introduced principles and procedures regarding the export and/or import of electricity by the Turkish Electricity Trade and Contracting Company.
Electricity Market Eligible Consumer Regulation
The terms and conditions concerning the eligibility of individuals and legal entities, and the rights and liabilities of eligible consumers and licence holders from whom they purchase electricity, are laid down in the Electricity Market Eligible Consumer Regulation. Pursuant to the Electricity Market Law, the term 'eligible consumer' refers to an individual or legal entity that is entitled to select a supplier as a result of a direct connection to the transmission systems or a high consumption of electricity. The regulation also provides the relevant rules of practice.
The Electricity Market Consumer Service Regulation determines the standards, principles and procedures that apply to consumers who intend to become (or who are affiliated to) a distribution system. The provisions also apply to service providers within the framework of the affiliation, retail sales or mutual agreement.
Transfer of transmission plants
Pursuant to the Regulation concerning Amendments to the Existing Agreements of Legal Entities Carrying Out More than One Activity in the Electricity Market and the Transfer of Transmission Activity and Abandoned Activities, legal entities that carry out transmission activities within the framework of existing agreements must transfer the transmission plants and all rights and powers to the Turkish Electricity Transmission Company.
In addition, legal entities that carry out (or that are authorized to carry out) more than one activity in the market under existing agreements must submit a request to abandon their generation and/or the distribution activity to the Ministry of Energy and Natural Resources.
Draft Energy Market Accounting Implementation and Financial Reporting Regulation
The purpose of the draft Energy Market Accounting Implementation and Financial Reporting Regulation is to build a financially strong, stable and transparent energy market through (i) the establishment of principles for the preparation of financial statements and reporting by market players, and (ii) a requirement that financial statements are prepared in line with established principles.
Draft Electricity Market Distribution Regulation
The draft Electricity Market Distribution Regulation lays down the principles and procedures that apply to distribution companies, consumers and relevant parties regarding efficient business administration, best service and equality of service.
Natural Gas Market Regulations
Natural Gas Market Internal Installation Regulation
The Natural Gas Market Internal Installation Regulation outlines principles and procedures regarding the design, construction, control and operation of internal installations. The regulation also provides for the location of all kinds of natural gas equipment and merchandise, as well as measures to be taken in the event of gas leaks or accidents.
Natural Gas Market Certificate Regulation
The Natural Gas Market Certificate Regulation concerns the preparation of certificates for individuals and legal entities that operate construction and service activities of the internal installation and service networks of the natural gas market. Further, the regulation contains provisions on:
- the scope of activities under the certificates;
- the cancellation, termination, renewal and amendment of the certificates; and
- the rights and liabilities that arise from authorization certificates.
Natural Gas Market Tariffs Regulation
The Natural Gas Market Tariffs Regulation deals with the preparation, examination, evaluation, modification and approval of regulated tariffs for the natural gas market.
Natural Gas Transmission Network Operation Regulation
The Natural Gas Transmission Network Operation Regulation concerns:
- the operation of the network as an affiliate to the system;
- the determination and notification of conveyance amounts; and
- the programming of conveyance services.
Among other things, the legislation also regulates deduction transactions, transportation control, system stabilization and natural gas conveyance.
Natural Gas Plants Regulation
The Natural Gas Plants Regulation governs the design, construction, control, operation, maintenance and repair of storage areas of natural gas transmission and distribution plants, and liquidated and compressed natural gas facilities.
Natural Gas Market Distribution and Consumer Services Regulation
The Natural Gas Market Distribution and Consumer Services Regulation deals with tender offers for natural gas distribution in cities. The regulation determines issues such as:
- the construction, operation, extension and development of the distribution network;
- the delivery of natural gas and the supervision of related activities; and
- distribution licences and the ensuing rights and liabilities of consumers and companies that hold them.
EMRA's aim in issuing the regulations is to form a transparent, competitive, dominant energy market that operates in accordance with the provisions of private law. It is hoped that such a market will provide a steady supply of adequate, good quality, cost-effective and environmentally friendly electricity and gas.
For further information on this topic please contact Ümit Hergüner at Hergüner Bilgen & Özeke by telephone (+90 212 310 1800) or by fax (+90 212 310 1899) or by email ([email protected]).