Newsletter & Legal Alerts

Q4/2016 Energy & Natural Resources

Communiqué on Administrative Fines Applicable for the year 2017 as per Article 16 of Electricity Market Law numbered 6446 has been published in the Official Gazette dated December 8, 2016 and numbered 29912. The communiqué regulates the administrative fines to be applied to the legal persons by Electricity Market Regulatory Board. Communiqué on Administrative Fines Applicable for the year 2017 as per Article 16 of the Amendment Law on LPG and Electricity Market Law has been published in the Official Gazette dated December 8, 2016 and numbered 29912. Communiqué on Administrative Fines Applicable for the year 2017 as per Article 19 of Petroleum Market Law numbered 5015 has been published in the Official Gazette dated December 8, 2016 and numbered 29912. Communiqué on Administrative Fines Applicable for the year 2017 as per Article 9 of Natural Gas Market Law has been published in the Official Gazette dated December 8, 2016 and numbered 29912. Amendment Regulation on Technical Evaluation of Power Generation based on Wind Sources has been published in the Official Gazette dated November 8, 2016 and numbered 29882. Pursuant to the amendment, unlicensed power generation applications for production plants which are subject to prelicense and production license applications shall not be approved. Petroleum Communiqué (published in the Official Gazette dated July 17, 1989 and numbered 20224) has been abolished. Communiqué on Administrative Fines Applicable for the year 2017 as per Article 77 of  Consumer Protection Law numbered 6502 has been published in the Official Gazette dated December 3, 2016 and numbered 29907.

Published on: February 2017


Q3/2016 Energy & Natural Resources

1)The Regulation on the Local Component Subsidiaries for the Facilities Generating Electrical Energy from Renewable Energy Resources (the “Regulation”) has been published in Official Gazette dated June 24, 2016 and numbered 29752. Upon publication of the Regulation, the former Regulation on the Manufacture of the Local Components Used in the Facilities Generating Electrical Energy from Renewable Energy Resources (published in Official Gazette dated June 19, 2011 and numbered 27969) has been abolished.

The Regulation consists of the procedures and principles regarding the determination and application process of local contribution additional price, in accordance with the Law No. 5346, differently from the former regulation and the certification and audit of manufacture of the local components or complemental parts, used in the facilities generating electrical energy from the renewable energy resources in a detailed manner compared to the former one.

2)The Amendment to Electricity Market Law and Some Laws has been published in the Official Gazette dated June 17, 2016 and numbered 29745. As per the amendment to Article 6/3 regarding “Pre-license principles” of the Law numbered 6446, right to determinate the exceptions to the businesses and transactions causing pre-license revocation has been granted to Energy Market Regulatory Board (the “Board”) and the exceptions to the reasons of revocation of pre-license such as direct or indirect change on the shareholding structure of the legal entity which holds the pre-license, share transfer or businesses and transactions lead to share transfer which are being “caused by inheritance and bankruptcy” have been abolished. The Board will determine such exceptions by the way of issuing regulation. 3)Amendments to Regulation on Liquefied Petroleum Gas (LPG) Market Licenses have been issued by Energy Market Regulatory Board (the “Board”) and published in the Official Gazette dated September 7, 2016 and numbered 29824. This amendment reduced the scope and mission of the regulation by no longer regulating the procedures regarding the notifications made to the Board. As per this amendment, license holder legal entities shall notify the Board in advance in the circumstances as follows: If license holder legal entity demands to merge with another license holder If license holder legal entity demands to merge with another legal entity who is   not a license holder If license holder legal entity demands to divide totally or partially If license holder legal entity is demanded to be acquired by another company

Amendment also altered time periods required regarding the application for extension of term of the license. Relatedly, if a license holder demands to extend his license term, he must issue an application earliest six months and latest two months before the expiry date.

4)The Regulation on Authorized Legal Entities (the “Regulation”) has been published in the Official Gazette dated June 3, 2016 and numbered 29731.

The Regulation provides the procedures and principles regarding competency certificate to be provided to legal entities by the General Directorate of Mining Affairs with the purpose of preparation of the report, project and all technical documents required to be submitted to General Directorate Mining Affairs by the legal entities, mining prospectors or employers in accordance with the Mining Law no. 3213.

According to new law, the legal entities requesting for the competency certificate must fulfill the following conditions and employ at least 5 employees:

Employing a fulltime mining engineer and a fulltime geological engineer worked for public or private sector at least for 5 years Employing a fulltime engineer among the followings; survey and cadaster engineer or hydrogeological engineer or environmental engineer or geophysical engineer, mineral processing engineer, metallurgical engineer, agricultural engineer, forest engineer, electrical engineer or mechanical engineer. Employing a fulltime mining engineer and a fulltime geological engineer regardless of the experience.

The application process and required documents; the commission established by the General Directorate of Mining Affairs, the obligations of the authorized legal entities and employees; the duties and signing authority of the abovementioned engineers are also the main topics regulated the Regulation.

The term of the competency certificate is 5 years as of the issuance date.

The branches of the authorized legal entity are also required to fulfill all of the personnel requirements which is required for the legal entities. All of the personnel employed in the legal entity must be a Turkish citizen.

In addition the new regulation stipulates the non-assignability of the competency certificate. 

Published on: October 2016


Q2/2016 New Electricity Market Regulation

A new regulation reflecting the market practice has been issued by the Electricity Market Regulatory Authority; the Regulation on Preparation and Implementation of Purchase and Sales and Tender Procedures of Electricity Distribution Companies and entered into force upon being published in the Official Gazette numbered 29722 and dated May, 25, 2016. The new regulation slightly differs from the former one. Construction, purchase of goods and services and sales of assets activities within purchase and tender procedures of electricity distribution companies that are not subjected to the Public Procurement Authority shall be conducted pursuant to this regulation by means of following 4 ways: open tender procedure, negotiated tendering, direct supply and out of coverage purchase. To this end, the upper limit shall not exceed TL 20 million for the works that will be bound by one contract this year.

Moreover, this regulation shall not be enforced to construction and purchase of goods and services works that cost less than one hundred thousand liras.

Before the regulation, tenders were conducted in accordance with Article 41 of the Communique on Terms Subject to Regulation Within the Scope of Regulation of Income and Tariff in Electricity Market (published in the Official Gazette dated January 24, 2003 and numbered 2503) and Procedures and Principles Regarding Identifications of Investment Expenditures with regards to the Electricity Market Distribution System and Monitoring Actualisation (published in the Official Gazette dated June 17, 2011 and numbered 27967). The regulation broadened and elaborated the old legislation by bringing thresholds as indicated above and principle of equality between bidders by preventing different treatment during the tenders. Thus, transparent competition environment has been provided.

Published on: July 2016


Q2/2016 Turkish Electricity Market Regulation

A new regulation on the demand forecasts in the Turkish Electricity Market has been published in the Official Gazette numbered 29705 and dated May, 7 2016 with the subject of Regulation on the Demand Forecasts of the Electricity Market. Upon publication of the new regulation, the former Regulation on Demand Forecast of the Electricity Energy (published in the Official Gazette dated April 04, 2006 and numbered 26129) has been abolished.

The new regulation consists of principles and procedures of making, evaluating, updating and confirming electrical energy demand forecasts by the Turkish Electricity Transmission Corporation (TEIAS), organized industrial zones and attendant supplier company in more detailed manner compared to the former one. 

Published on: July 2016


Q1/2016 Electric Power Production without License

Amendment to the regulation and communiqué in respect of Electric Power Production without License (published in the Official Gazette dated October 2, 2013 and numbered 28783) have been published. It has been stated that the share transfer shall be prohibited between the application date and operation date for the wind and solar energy premises with an attempt to assign the connection capacities to the actual investors; relatives, spouses, children and employees of the distribution companies’ directors shall not operate without license in the related distribution areas and it shall be prohibited to handover the projects or transfer the shares before the production phase of the projects.

Published on: April 2016


Q1/2016 Electricity Market Licensing Regulation

Electricity Market Licensing Regulation (published in the Official Gazette dated November 2, 2013 and numbered 28809) has been amended by the Amendment Regulation on Electricity Market Licensing Regulation (published in the Official Gazette dated December 23, 2015 and numbered 29571) in accordance with the amendments to Electricity Market Licensing Regulation, Energy Market Regulatory Authority has adopted new resolutions. Amongst other changes, we would like draw energy market investor’s attention to a procedural change as to pre-licensing mechanism which has been introduced into Turkish electricity market on 2013 which requires the generation license applicants to be initially granted a pre-license. As additional requirement pre-license applicants for those other than wind, solar, hydraulic or geothermal power plants shall obtain the decision within the scope of the Environmental Impact Assessment Regulation before pre-license application.  

Published on: April 2016


Q1/2016 Energy Efficiency Law

Communiqué on Administrative Fines applicable for the year 2016 as per Article 10 of the Energy Efficiency Law numbered 5627 has been published in the Official Gazette dated February 24, 2016 and numbered 29634 and the administrative fines applicable for the year 2016 has been determined as follows;

Administrative Fines

Article 10 of the Energy Efficiency Law

Administrative Fines stated in the Law

(TL)

Administrative Fines which has been applied in the year 2015 (TL) Administrative Fines that will be applied in the year 2016 (TL) Fines determined in paragraph (a) sub-paragraph (2)

10.000

50.000

17.972

89.875

18.974

94.890

Fines determined in paragraph (a) sub-paragraph (3) 500 895 944 Fines determined in paragraph (a) sub-paragraph (7) 5000 8.984 9.485 Fines determined in paragraph (a) sub-paragraph (8) 20000 35.946 37.951 Fines determined in paragraph (a) sub-paragraph (9) 20000 35.946 37.951

Published on: April 2016


Q1/2016 Petroleum Market License

Amendment to the Petroleum Market License Regulation (published in the Official Gazette dated June 17, 2004 and numbered 25495) has been amended. Pursuant to the amendments in respect of the provision regulating activities which are subject to license and its exemptions, production of base oil from waste mineral oil shall be made by the producers who have mineral oil license or distributor license on condition that the license holder includes this activity to the subtitles of the license. However, the temporary Article 20 of the Regulation makes a temporary exemption to this provision and mineral oil license holders and distributors has the right to produce base oil from waste mineral oil without including this activity to the subtitle of their license until January 1, 2018.

Published on: April 2016


Q4/2015 Penalties for Natural Gas Market

The Communiqué on the Penalties for the year 2016 as per Article 9 of the Law of Natural Gas Market numbered 4646 (published in the Official Gazette dated December 22, 2015 and numbered 29570) has been published by Energy Market Regulatory Board. Pursuant to the amendments, the administrative fine that is stated in Article 9/g of the Law numbered 4646 has been increased from TL 500.000 to TL 1.062.235.

Published on: January 2016


Q4/2015 Regulation on Technical Evaluation of Applications on Electricity Production based on Wind Sources

Regulation on Technical Evaluation of Applications on Electricity Production based on Wind Sources has been published by the Ministry of Energy and Natural Resources (published in the Official Gazette dated October 20, 2015 and numbered 29508). This regulation determines the grounds of denial for the pre- license applications and the conditions for amending license. This regulation has abolished the Regulation on Technical Evaluation of Applications on Electricity Production based on Wind Energy (published in the Official Gazette dated November 9, 2008 and numbered 27049)

Published on: January 2016