National and Regional Tariff Selection; The Regional Tariff, which is expected to take effect on 31 December 2012, is the date of 30 March 2013 and the Electricity Market Law no. 28603; Provisional article 1 has been extended until December 31, 2015)
National tariff implementation
TEMPORARY ARTICLE 1 – (1) Consumers who purchase electricity on regulated tariffs may be subject to cost differences between distribution zones; the price synchronization mechanism, which has been established to partially or completely protect the price differences that are in place and whose implementation considerations are regulated by the notification prepared by the Institution, shall be implemented by 31/12/2015. All public and private distribution companies and supply companies are involved in the price synchronization mechanism.
(2) Until 31/12/2015, the national tariff application is based on the conditions and cross-subsidy is applied to the national tariff. The national tariff is prepared by the Institution and comes into force with the approval of the Board.
(3) Until 31/12/2015, all accounts are kept in accordance with the relevant legislation.
(4) The Council of Ministers is authorized to extend the period under this article for up to five years.
Well, the Amount of Support issued in the Official Gazette on 6 March 2013 and numbered 28579; determined in paragraph h) of Article 4 of the “WARNING ABOUT PRICE EROSION SPACE TO BE APPLIED IN THE ELECTRICITY MARKETS”;
“h) The difference between the revenue stipulated by these companies in distribution; transmission and loss-smuggling within the scope of approved tariffs for distribution companies and the income they obtain as a result of national tariff implementation; for retail companies; the difference between the revenue stipulated from retail energy sales and retail service activities and the income they get as a result of national tariff implementation.”
Now we have two alternatives; either the National tariff application will continue for another five years; and regions with high loss/leakage rates will continue to receive the price synchronization fee, and consumers will continue to pay their current loss/leakage costs.
Or, as of January 01, 2016, the regional tariff will be implemented; and consumers in some regions will be able to receive electricity at approximately today’s price; In some regions, the unit price will double or even triple, and the current loss/leakage costs that consumers pay on their electricity bills will be revised or abolished al-entirely.
Then the work of distribution zones with high loss/leakage ratios will be really more difficult.
In the face of the high unit price, leakage/loss rates will increase; collection rates will fall and management will become more difficult.
On the other hand, the national tariff application will continue at the expense of price synchronization fee; Then the sustainability of price synchronization financing, which has reached high sums even today, will continue to be a problem.
National and Regional Tariff Selection
As a result, public, distribution and retail companies and consumers; we are dealing with a problem that is of serious interest and is not easily seen as the solution.
Public and Public Companies must follow up on the issue and discuss their talks or proposals, as well as;
Distribution and Retail Companies (including End Source Suppliers) must determine their strategy according to both scenarios.
Consumers, on the other hand; will have to get used to living with the decision that will come out as usual, and there is no second way for them.