A draft regulation (“Draft Regulation”) amending the Regulation on Measures for Electricity Distribution and Supply Companies (“Measures Regulation”) was published by the Energy Market Regulatory Authority (“EMRA”) on its website for public comments on April 24, 2019.

The Draft Regulation envisages to increase the measures and sanctions applicable for electricity distribution and assigned supply companies by adding new categories of defaults in the Measures Regulation. Accordingly, the following events are envisaged to constitute new grounds for imposing measures and sanctions to distribution and assigned supply companies:

• the distribution company is in an unacceptable delay for (i) payments to EÜAŞ (the state-owned electricity generation company) for energy purchases, (ii) payments to TEİAŞ (the state-owned electricity transmission company) within the scope of transmission tariff, and (iii) payments to be made within the scope of the Communiqué on Price Equalization;

• the assigned supply company is in an unacceptable delay for the payments, other than the purchases made for the consumers whose tariff is not subject to regulation, to (i) EÜAŞ for energy purchases, (ii) payments regarding the support amounts to be made within the scope of the Communiqué of Price Equalization, and (iii) payments to be made to the distribution companies as distribution system usage fee;

• the energy purchase prices paid by the assigned supply company under the bilateral agreements, other than to be made with EÜAŞ and under the organized wholesale market, are unacceptably higher than the market prices;

• the financial sustainability of the distribution or assigned supplier company or their ability to perform the tasks assigned by the legislation is at risk to an unacceptable level due to its loan or other similar transactions with their direct or indirect shareholders.

The board of EMRA is authorized to impose certain measures and sanctions to distribution and supply companies (such as dismissal/appointed of board members, cancellation of the license and access to dividend incomes and other assets of the shareholders) under certain circumstances provided in the Measures Regulation. The Draft Regulation envisages to include the foregoing events as additional grounds for imposing such measures and sanctions.

Comments on the Draft Regulation may be shared with EMRA until May 8, 2019 by completing the form available at https://www.epdk.org.tr/Detay/Icerik/20-3/elektriktaslakgorus.

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