Energy

2. Getting Licenses

All market activities in the energy sector are run under particular licenses obtained from the Energy Market Regulatory Authority (EMRA). Separate licenses are required for each market activity and for each facility/region where the activity is carried out. The license holders are obliged to keep separate accounts for each activity of the licenses they have. 

Under no condition can licenses be transferred. Licenses are issued for a period of up to 49 years, with a minimum term for generation, transmission and distribution licenses of 10 years. The facilities, books and records of accounts must be kept available to EMRA’s inspection and audit, and licensees must provide any information and documents to EMRA upon request.

In order to obtain the relevant licenses to operate in the electricity market, the legal entities are required to apply to EMRA by submitting in full the documents determined by the decision of the board of EMRA. Each single procedure from the application for a license to the issuance of a license by the decision of the board of EMRA is determined by the Electricity Market Licensing Regulation. More information regarding the licensing process in the electricity market is available in EMRA’s official website: www.epdk.org.tr  

The applicant applying for a license must have a minimum capital stated in the Electricity Market Licensing Regulation. If the applicant does not have the minimum capital at the time of application, the applicant is required to increase its capital to, at least equal to the minimum capital requirement in a 90-day period before the board of EMRA makes its decision on the granting of the license to the applicant. On the other hand, in order to be granted a license by the Board of EMRA, the applicant may be asked to include some provisions to its main charter in accordance with the related legislation regarding the electricity market.

Licensing process is completed within 150-180 days for generation and autoproducers licenses, except for delays arising from the applicant itself and other institutions. Duly filed wholesale license applications are completed within 30-90 days.

 

License fees

For 2010, the applicable fees for licensing, annual license, renewal of license, modification of license and obtaining notarized copy of license are as follows.

 

a) Transmission:

 

  • Annual license fee: 0,003 Kr per kWh that is transmitted
  • License renewal: TRY 1,100
  • Obtaining notarized copy of license: TRY 110


Besides, additional transmission charge that is collected on the basis of the transmission tariff and is reflected to the transmission system users on behalf of EMRA is determined as 0,5% (five per thousand) of transmission tariffs of the Turkish Electricity Transmission Company (TEIAS) for the year 2007.

 

b) Generation:

 

  • Licensing fee:

 

 

Value of installed power capacity, “P(MW)”

0 < P ≤  1 MW

TRY 1,100

1 < P ≤  5 MW   

TRY 2,750

5 < P ≤  10 MW

TRY 5,500

10 < P ≤  25 MW

TRY 11,000

25 < P ≤  50 MW

TRY 16,500

50 < P ≤  100 MW                                        

TRY 27,500

100 < P ≤  250 MW

TRY 55,000

250 < P ≤  500 MW

TRY 82,500

500 < P ≤  1000 MW

TRY 165,000

P > 1000 MW

TRY 275,000

 

 

  • Annual license fee: 0,002 Kr per kWh that is generated.
  • License renewal fee: 50% of license granting fee.
  • Modification of license: In the case of the value of new installed power capacity is greater than the old installed power capacity value interval, the fee will be the difference between new installed power capacity interval and the old installed power capacity value which is currently applicable, on the other hand, the fee will be TRY 1,100 if capacity increase remains within the same installed power capacity value interval and in other cases.
  • Obtaining notarized copy of license: TRY 110


c) Distribution:

 

  • Licensing fee:

 

 

Distributed volume of energy per annum, “D (kWh)”

D ≤  100 million kWh

TRY 27,500

100 million kWh < D ≤  250 million kWh

TRY 55,000

250 million kWh < D ≤  500 million kWh

TRY 82,500

500 million kWh < D ≤  1 billion kWh

TRY 137,500

1 billion kWh < D ≤  5 billion kWh                 

TRY 275,000

5 billion kWh < D ≤  10 billion kWh

TRY 550,000

D>10 billion kWh

TRY 825,000

 

 

  • Annual license fee: 0,003 Kr per kWh that is distributed.
  • License renewal fee: 50% of license granting fee.
  • Modification of license: As a result of distribution regions merger, if the distributed volume of energy outreached the value interval prior to the modification, the license fee will be the difference of licensing fee corresponds to new value interval and the licensing fee corresponds to the old value interval. The license modification fee will be TRY 1,100 if the distributed energy remains within the same value interval and in other cases.
  • Obtaining notarized copy of license: TRY 110


d) Wholesale:
 

  • Licensing fee: TRY 275,000 for private wholesale companies.
  • Annual license fee: 0,003 Kr per kWh that is sold lump sum.
  • License renewal fee: 50% of license granting fee.
  • Modification of license: TRY 1,100 
  • Obtaining notarized copy of license: TRY 110


e) Retail sale:

 

  • Licensing fee: TRY 220,000 for private retail sale companies. The retail sale license granting fee is 10% of license granting fee of distribution activities for distribution license holders who applied for granting retail sale license.
  • Annual license fee: 0,003 Kr per kWh that is sold by retail.
  • License renewal fee: 50% of license granting fee.
  • Modification of license: TRY 1,100
  • Obtaining notarized copy of license: TRY 110
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