Draft Regulation amending the Regulation on Purchase-Sale and Tender Procedures for Electricity Distribution Companies (“Draft Regulation”) has been published on the website of the Energy Market Regulatory Authority (“EMRA”) on February 8, 2017 for the opinions and comments of the public. Main features of the Draft Regulation are as follows:

• Maximum duration of the framework agreements regarding service procurement will be extended from two years to three years whilst maintaining the two-year maximum term for framework agreements regarding the purchase of goods and construction works.

• The threshold of TRY 20 million for works that will be subject to a single agreement will be amended as 10% of the annual total value of the approved investment expenditure. In the event the amount calculated as explained above is below TRY 20 million, the threshold will be considered as TRY 20 million.

• Tender Committee will select at least three eligible candidates amongst bidders in framework agreement tenders and rank these candidates in accordance with their offers from most favorable to the least favorable. In the event the number of the candidates falls below three, the framework agreement will be terminated automatically and this will be notified to the parties. Candidates will be obliged to document their qualification every 12 months and their framework agreements will be terminated if they fail to prove it. Framework sales agreement to be executed within the scope of the framework agreement will be concluded with the candidate who has submitted the most favorable offer. The term of the framework sales agreement will be limited with the term of the framework agreement.

• Similar to the term of the framework agreements, the term of other agreements to be executed upon a tender will not exceed two years for purchase of goods and construction works and will not exceed three years for service procurement works. However, differently from the framework agreements, term of such other agreements can be extended up to another year provided that the distribution company justifies such extension and there is a provision under the agreement in this regard.

• Submission of the offers through internet in open tenders and invitation procedure tenders will be abrogated. All such offers will need to be submitted physically.

Market players and other interested parties may submit their opinions and comments on the Draft Regulation to EMRA by February 20, 2017.

^{This information is provided for your convenience and does not constitute legal advice. It is prepared for the general information of our clients and other interested persons. This should not be acted upon in any specific situation without appropriate legal advice. This information is protected by copyright and may not be reproduced or translated without the prior written permission of Ergün Avukatlık Bürosu.}