e-book2013

NEWSLETTER 2013

308

Temporary Articles and the Extension of Some Deadlines

Some deadlines set in the Previous Law are extended with the New

EML. Some of them are as follows:

– The price equalization mechanism for distribution companies and

supply companies, which was applied until the end of 2012, is

extended until the end of 2015, and until such date the national

tariff applies.

– The corporate tax and VAT exemptions, which were applied

until the end of 2010 to the mergers, spin-offs and transfers of

generation and distribution companies subject to privatization, are

extended until the end of 2023.

– A 50% discount on system utilization fees during the investment

periods and for five years as of the operation start date, and the

exemptions from stamp tax and duties granted to generation

facilities are extended until the end of 2015.

Further to the aforementioned, pursuant to temporary Article 12 of the

New EML, within one year of the New EML’s effective date, generation

licenses shall be issued to the generation facilities and projects subject

to existing agreements

. The terms of such licenses will be subject to

the same rights and obligations and limited by the term in the existing

agreements.

Moreover, it is regulated under paragraph 1 of temporary Article 14

that new licenses shall be issued to former generation license holders

who started the construction of power plants but whose licenses were

cancelled or ceased before the entry into force of the New EML; provided

that the Ministry of Energy and Natural Resources (“MENR”) decides

the construction is irrevocable and there is public interest for continuance.

However, this provision is not applicable to hydro-electric power plant

facilities.

Existing agreements are defined as the contracts and concession and implementation

agreements signed before the enactment of Previous Law in accordance with the terms and

conditions of Law no. 3096 dated 04.12.1984, no. 3996 dated 08.06.1994, no. 4283

dated 16.07.1997 and no. 4501 dated 21.01.2000 and related regulations.