Page 33 - TURKRptOct22

On April 1, two price ceilings were introduced in the market. The government transfered funds to import coal, gas, fuel oil, naphtha, LPG and diesel. As of October 1, a total of four ceilings were introduced and domestic coal-fired plants were also included in the fund transfer scheme.
Lately, the EPDK came up with another invention that might make financial engineers, employed by Erdogan’s palace administration, envious.
Companies that have unlicensed power plants are now obliged to provide excess electricity to the transmission system for free. For instance, if a company produces 300 MWh electricity and consumes 100 MWh, it can only sell 100 MWh (at the amount it consumes) and it provides the remaining 200 MWh to the system for free.
A total of 390 MW of installed unlicensed capacity falls under the scope outlined, according to the EPDK.
Although it does not make the limelight, Turkey’s wholesale electricity market is, meanwhile, in a real mess. Europe has lately fallen into an energy crisis. Steps towards direct subsidies for customers have been taken while price caps are under discussion. There is a big question over how Turkey’s government will overcome the snowballing crisis with its already chaotic policies. The government has been subsidising all sides in the transmission system from producers to grids and consumers.
As a result of infamous privatisations carried out by Turkey’s governing Justice and Development Party (AKP), the country has transferred big wealth to private producers and grid operators.
The Turks are lucky as the AKP has not managed to privatise the transmission monopoly, the Turkish Electricity Transmission Company (TEIAS). As a result, the profits of some business players are not subsidised.
TEIAS, meanwhile, transfers funds to idle plants under the so-called capacity support mechanism. Wealth transfers under the greenish Renewable Energy Support Mechanism (YEKDEM) have lately been sustained after market prices surpassed the prices for purchase guarantees under the scheme.
Unpaid loans extended to the grid operators are not enough. Government-run power producer EUAS, Turkey’s largest power producer with a 21% share in Turkey’s combined installed capacity of 102 GW at end-July and a 14% share in Turkey’s combined electricity production of 191 TWh in January-July, sells electricity to grids at TRY 1,100/MWh.
33 TURKEY Country Report October 2022 www.intellinews.com