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NEWSLETTER 2013
310
Licensing under the New Electricity Market Law
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Att. Berna Asik Zibel
The new Electricity Market Law
1
No. 6446 entered into force on
March 30, 2013 (“New EML”), with the objectives of developing a
transparent and competitive electricity market, achieving stability of
supply, and ensuring good quality, low cost and environmentally friendly
electricity.
Similar to the former law, the New EML sets forth the basic licensing
rules to enter the electricity market. In this article, we will review the
licensing provisions under the New EML.
Electricity Market Activities and Market Entrance
According to the New EML, “electricity market activities” include
the generation, transmission, distribution, wholesale, retail sale, market
operation, export and import of electricity. In order to enter and operate
in the electricity market, legal entities should obtain the relevant license
for each market activity.
Based on the field of activity, the following licenses can be obtained:
(a) A generation license for generation activities including auto-
production, export and import activities;
(b) A distribution license for distribution activities;
(c) A supply license for wholesale and retail sale activities including
export and import.
Moreover, under the New EML, the transmission of electricity in
Turkey is solely vested in TEIAS
2
and the market operation activity
is solely vested in the Energy Market Operation Joint Stock Company
(“EPIAS”), a new company which will assume the role held by the
Market Financial Reconciliation Center (“MFRC”) under the former law.
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Article of April 2013
1
Official Gazette 30 March 2013, No. 28603.
2
The abbreviation is for Turkish Electric Transmission Joint Stock Company. It is the only
company in Turkey which conducts transmission activities with a transmission license.