Regulation of electricity utilities – sales of power

Approval to sell power

What authorisations are required for the sale of power to customers and which authorities grant such approvals?

A supply licence is required for the sale of power to customers. Licences are granted by EMRA for a maximum term of 49 years (see question 2). Authorised suppliers are entitled to sell electricity to eligible customers across Turkey, non-eligible consumers and customers of last resort as last-resort supplier (see question 2) in the relevant distribution region. Suppliers that previously hold a wholesale licence and the ones granted supply licences afterwards are entitled to sell electricity to eligible consumers only. As a result, supplier companies and authorised supply companies will not have equal rights unless the eligible consumer limit is decreased to zero kWh (see question 21).

Power sales tariffs

Is there any tariff or other regulation regarding power sales?

Retail sales to non-eligible consumers, wholesales of EUAS and last-resort electricity supplies are regulated and subject to a tariff. . Eligible consumers, instead of purchasing electricity at the tariff from the authorised supply companies, can make bilateral electricity purchase agreements with providers of electricity such as electricity generation companies and private wholesale companies (supply companies). At present, the eligible consumer limit is 2,000kWh per annum for 2018. On 20 January 2018, eligible consumers are divided into two groups as eligible consumers with high consumption and eligible consumers with low consumption, and are subjected to different tariffs in the event they do not make bilateral electricity purchase agreements (‘Update and trends’).

Rates for wholesale of power

Who determines the rates for sales of wholesale power and what standard does that entity apply?

The wholesale tariff of EUAS is prepared and proposed to EMRA by EUAS and approved by EMRA; however, this tariff only applies EUAS’ supplies to authorised supply companies for their supply to non-eligible customers and customers of last resort, and EUAS has the liberty to negotiate the sale price for its other electricity supply activities (ie, EUAS’ supplies to supply companies and eligible consumers) and determine the final sale price with its counterparties. The private wholesale companies (supply companies) may sell power with bilateral agreements to eligible consumers (see question 18). In addition, they may sell power in the day-ahead and intraday markets.

Public service obligations

To what extent are electricity utilities that sell power subject to public service obligations?

The EML obliges the authorised supply companies to supply power, as a last-resort supplier, to the eligible consumers whose power demands cannot be met by other suppliers (see question 2). Authorised supply companies are also required to meet the energy and capacity demands of non-eligible consumers in their regions.