Abstract
The growth of electricity demand in Turkey has historically been high, growing at an average rate of about 7% per year between 1990 and 2010. As seen, there have been a number of years with exceptionally low growth, namely 1999, the year of a devastating earthquake, and the years 1994, 2001, and 2008–2009, which were years of severe economic crises.
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- 1.
Autoproducers are established primarily to consume the electricity they generate by themselves. According to the Energy Market Law, they have the right to sell 20% of the electricity they produce to the market. Under exceptional circumstances the Board of the regulatory authority may increase this ratio. The ratio has been set at 40% by the Board in December 2011. However, any sale in excess of the ratio set by the Board would require a generator’s license. An autoproducer group is similar, except that it generates electricity not only for itself but for its affiliates. In what follows the term autoproducer will be used to refer to both autoproducers and autoproducer groups.
- 2.
EÜAŞ affiliated partnerships are companies where EÜAŞ’ ownership share is above 50%.
- 3.
The term “non-technical losses” most often refers to theft of electricity. Hence “theft” and “non-technical losses” will be used interchangeably. The term “losses”, when used alone, refers to the sum of technical and non-technical losses.
- 4.
As of December 2011, TEİAŞ loss data for 2010 were not available.
- 5.
The provincial composition of regional distribution companies is provided in Table 2.7 below.
- 6.
The only exceptions were municipally-owned transmission and distribution facilities and three regional concession companies. The municipal facilities later came under TEK’s control in 1982.
- 7.
- 8.
- 9.
It seems the California crisis played a role in this choice as well. The California model also had an exchange similar to the Pool, and there were strong indications that exercise of market power played a significant role in the development of the crisis.
- 10.
- 11.
As of December 2011, 14 regions have been defined for the purposes of transmission system use prices.
- 12.
Decision No. 2004/3 of the High Planning Council, Official Gazette 17.3.2004.
- 13.
According to Price Waterhouse Coopers (2008) “Metering and billing problems coupled with loss & theft ratios much higher than the OECD median constituted the main imperatives behind the policy decision to grant a priority to the distribution segment” (p 17).
- 14.
The following is drawn from Privatization Authority (2009).
- 15.
Through Law No. 5496, Article 6.
- 16.
As per Law No. 5784 enacted in 2008.
- 17.
Article 6 of Law No. 5496 enacted in 2006, adding provisional article 9 to the EML.
- 18.
The teaser for the privatization prepared by the Privatization Authority (2009) argued that “at each distribution company, substantial operational efficiency improvement is achievable through optimizing core business processes, such as billing and collections, arranging and redesigning work flows, enabling effective coordination between divisions, improving information systems, and infrastructure and optimizing personnel productivity.”
- 19.
It turns out the bids of the top three bidders are not that far apart, except for Bedaş, where the two top bids (1.813 and 1.812 billion USD, respectively) were substantially higher than the third and fourth highest bids (1.459 and 1.321 billion USD, respectively).
- 20.
In reference to data presented in Fig. 2.7, note, again, that the privatization process for Boğaziçi, Trakya, Dicle, Ayedaş, Toroslar, Akdeniz, Vangölü have not been completed and the data may change.
- 21.
Many of these plants are small auto-producers; there were some IPP and BO plants as well. Plants that were of more significant size were gas-fired and there was one plant based on imported coal.
- 22.
The daily Referans, 21.9.2007.
- 23.
High Planning Council Decision No. 2008/T-5 dated 14.2.2008.
- 24.
IEA (2011), pp 335 and 336.
- 25.
Directive 2009/72/EC 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC.
- 26.
See European Commission (2010) for an extensive discussion and clarification.
- 27.
Law No. 5398, July 2005. An important restriction imposed on the distribution company was that the price of the electricity purchased from its subsidiary or affiliated companies could not be higher than the country average wholesale electricity price. This price is determined by EPDK and has been set equal to the average price established in the day-ahead market.
- 28.
See Atiyas (2009) for a discussion.
- 29.
Competition Authority (2005). Competition Authority (n.d.) provides the internal report that provided the basis for the Board Decision.
- 30.
Law No. 5784 of July 2008.
- 31.
See Kölmek (2011) for a discussion.
- 32.
- 33.
The Sector Inquiry of the European Commission (2007) states: “Regulated retail tariffs can have highly distortive effects and in certain cases pre-empt the creation of liberalised markets”(p 14).
- 34.
A Decree with the Force of Law is basically a law that is enacted by the Council of Ministers rather than the Parliament. Such decrees are based on “authorizing laws” which have been enacted by the Parliament.
- 35.
See, for example, Amundsen and Bergman (2006).
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Atiyas, I., Çetin, T., Gülen, G. (2012). Regulatory Reform and Competition in the Turkish Electricity Industry. In: Reforming Turkish Energy Markets. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-0290-9_2
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