The Energy Market Regulatory Authority (“Authority”) in Turkey has published procedures and principles for pre-approved investments, made within distribution system revenue arrangements. Accordingly, the Procedures and Principles Regarding Investments on Electricity Market Distribution Systems (“Procedures and Principles”) were published in Official Gazette number 29546 on 28 November 2015, entering into effect on 1 January 2016.

According to the Procedures and Principles, any investment expense by distribution license holders must be made within the scope of investment plans which are approved by the Energy Market Regulatory Board (“Board”). The Board approve investment plans for each implementation term.

Ownership of investments should belong to the state or be made on the state’s behalf.

The Authority can request information if no investment proposal for distribution service is submitted to the Authority. If a distribution company fails to submit its investment plan proposal by the due date, the company will be required to follow an investment plan which is prepared by the Authority and approved by the Board.

These factors take priority within the scope of investment plans:

  • Security of life and property.
  • Continuity of supply and technical quality.
  • Connection requests to distribution system.

Principles for preparing master plans are now listed in a more comprehensible manner.

Any assets established as a network investment must be in use for 15 years, subject to the Board’s discretion.

Planned investments should be reported to Authority with annual actualization tables. For investments that are approved and began operation during the year, accounting records and investment documents should be submitted to the Authority.

The Procedures and Principles are prepared based on the Communiqué on Regulation of Distribution System Revenue. The recent Procedures and Principles supersede the Procedures and Principles Regarding Review of Expenditures of Investments for the Regulation of Electricity Market Distribution System, which were published in Official Gazette number 27967 on 17 June 2011. However, the superseded principles and procedures will continue to apply for the 2011 to 2015 period.

Please see this link for the full text of the Principles and Procedures (only available in Turkish).