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NEWSLETTER 2013
322
Pursuant to the draft text of the Regulation, investors had to obtain all
of the documents that were required to have a license before the Regulation
entered into force in order to get a preliminary license. Considering said
provision of the draft, the Ministry of Energy and Natural Resources
expressed that this subject would lead to an incompatibility with the law;
and other institutions in the sector, along with the Electricity Producers
Association (EPA) which stated that such a large number of documents
could not be obtained at the first step, and that the functionality sought
in practice would be hindered. After giving due consideration to the
aforementioned opinions, in the approved version of the Regulation,
the provision on preliminary licenses was amended to make it more
functional and convenient in practice. Pursuant to the Regulation, which
was approved and has entered into force, it is not required to deliver all
obligatory documents for a license while applying for a preliminary
license; and the procedure for a preliminary license is simplified.
Therefore, production companies, which are subject to licensing and
which will operate in the electricitymarket, will be subject to a preliminary
license procedure before licensing, and will be obliged to apply for a
preliminary license in accordance with the provisions foreseen in Art.12
of the Regulation.
Pursuant to Article 9 of the Regulation, the duration of a preliminary
license cannot exceed twenty-four months, excluding force majeure
conditions, and when a preliminary license is issued, matters regarding an
extension of up to thirty-six months are regulated by the Board, depending
on source type and installed capacity.
Pursuant to Article 12 paragraph 3 of the Regulation, legal entities
subject to private law applying for a preliminary license with the intent
to conduct activities in the electricity market have to be established as
a joint stock or limited liability company as per the provisions of the
Turkish Commercial Code No. 6102; or must have all of its shares other
than those traded on the stock exchange according to the capital markets
regulations registered if established as a joint stock company.
Also, pursuant to Paragraph 4 of the same Article, a legal entity or
real or legal person(s) directly or indirectly owning a ten percent or more
share, or a five percent or more share for publicly traded companies, in the