It is possible to evaluate Turkish Energy Law in parallel with the electricity, oil, gas and LPG markets.
Energy Market Regulatory Authority is responsible for the issuance of energy licenses of legal entities within the borders of our country, determination of the procedure to be applied in the transfer of operating rights, monitoring the performance of the energy market, establishing and changing performance standards and distribution and customer service regulations, determining pricing principles, determining the pricing of sales to non-eligible consumers and ensuring the compliance of the energy market with the law.
EMRA is a public legal entity with administrative and financial autonomy. The representation and decision body of EMRA is the Energy Market Regulatory Board.
EMRA has the authority to regulate and audit the electricity, gas, oil and LPG market.
The Electricity Market Law No.6446 has been put into force to ensure that the audit is carried out and to create a financially strong, stable and transparent electricity market that operates in accordance with the provisions of private law in a competitive environment, and it is created to provide an independent regulation in this market in order to provide the consumers with sufficient, quality, continuous, low cost and environmentally friendly electricity.
The law regulates the production, transmission, distribution, wholesale or retail sale, import and export of electricity, its operation in the market, and the rights and obligations of real and legal persons related to all these activities.
What are the activities that need to be licensed?
- Production activity
- Transmission activity
- Distribution activity
- Wholesale activity
- Retail activity
- Market operating activity
- Import activity
- Export activity
Private law legal entities wishing to obtain a license to perform the above-mentioned activities must be established with the status of a joint stock company or a limited liability company. In addition, according to the capital market legislation, the shares of joint stock companies, other than those traded on the stock exchange, must be registered share.
The license is issued separately for each facility, so the license application must be made separately.
The license term is forty nine years, at least ten years for production and distribution facilities.
The license fee is determined by the Authority every year and must be paid.
In case of rejection of the license application, the applicant is notified with its justification.
What are the license expiration conditions?
Expiration (automatically)
Finalization of the bankruptcy of the licensee (by Board decision)
At the request of the license holder (with the decision of the Board)
Loss of license granting conditions (by Board decision)
The chairman and members of the board of directors, including the legal entity whose license is cancelled, shareholders holding ten percent or more shares in this legal entity, and those who have left office within one year before the license cancellation date; cannot obtain a license for three years following the revocation of license.
These persons cannot apply for a license, cannot be directly or indirectly shareholders in legal entities applying for a license, and cannot be assigned to the boards of directors. (Article 5/8)
What is an pre-licence?
The legal person applying to the Authority for the generation license is granted a pre-license for a certain period of time in order to gain the ownership or usage right of the area where the generation facility will be established and the permits, approvals, licenses and similar documents required by the legislation to initiate the generation investment.
The pre-license of the applicant who fails to obtain the required documents, permit, approval, license or property right or right of use within this specified period, is also canceled.
