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Authority stated that comprehensive liberalization process in the

Turkish electricity market, which is initiated with the Law No. 4628 on

Electricity Market, is rapidly developing and privatization is the lead-

ing current factor. Moreover, it is noted that the other factors that are

significant within the liberalization of electricity market are separation

of ownership of transmission and distribution lines, allowing con-

sumers to decide from whom they buy their electricity power and coor-

dination and cooperation between Energy Market Regulatory

Authority (“EMRA”) and the Authority.

Authority provided the following suggestions in light of their eval-

uations:

• Creation of a sustainable competitive market to be set as the

main target for the electricity privatization process

• Unbundling ownership of transmission and distribution from

the competitive market operations

• Taking necessary measures to reduce switching costs

• Giving priority to studies for raising consumers’ awareness and

competition culture

• Improvement of the increased inter-connection and coordina-

tion between EMRA and the Authority

Natural Gas Market

When taken into consideration the consumption ratio of the ener-

gy resources, natural gas takes the third place after fuel and coal.

Turkey has a very limited amount of production in this field in com-

parison to its consumption. The natural gas is provided in Turkey by

importing through pipelines or by maritime transport of liquefied nat-

ural gas. In this scope, Turkey has concluded long term purchase agree-

ments with producer countries, especially with Russia and Iran.

The main legal framework in Turkey enabling the natural gas mar-

ket to be competitive is drawn by the Law No. 4646 on Natural Gas

Market dated 18.04.2001. The same law stipulates that the independent

activities of regulation and inspection in natural gas market shall be

conducted by EMRA.

COMPETITION LAW

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