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NEWSLETTER 2013
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Previous Law, are regulated as one license type, a “supply license”, under
the New EML. As per Article 10 of the New EML, supply companies
can conduct wholesale and/or retail sale activities without territorial
limitations. In addition, it is stipulated that supply companies may also
import from and export to countries with which the interconnection
condition is satisfied.
The Conversion of the Auto Producer License to the Generation
License
The “auto producer” and “auto producer group” licenses are not
explicitly regulated under the New EML. Instead, temporary Article 7 of
the New EML holds that generation licenses will be automatically issued
to auto producer license holders within six months of the effective date
of the New EML, and no license issuance fee shall be charged. Moreover,
any applications filed to obtain an auto producer license will be treated as
generation license applications.
Provisions on Total Market Share
The Previous Law set forth restrictive provisions related to total
market share or total sale amounts for companies active in the electricity
market. These restrictions were 10% of the previous year’s total energy
sales within Turkey for wholesale companies and 20% of the previous
year’s calculated total installed capacity within Turkey for generation
companies.
The New EML also regulates market share restrictions for license
holding companies. Pursuant to its provisions:
– Generation companies controlled by any real person or any private
sector legal entity cannot hold a total installed capacity of more
than 20% of the previous year’s calculated total installed capacity
within Turkey (Art.7/para.5);
– Private sector legal entities that hold supply licenses cannot
purchase electricity fromgenerationor export companies exceeding
20% of the previous year’s total consumption of electricity within
the country (Art.10/para.6);