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Şimşek: electricity grid tender to minimize illegal use, boost efficiency
Şimşek noted that the government’s main goal in privatization was to “decrease the rate of illegal electricity usage.” Currently, many people do not pay for their electricity usage because state-run operators have been unsuccessful in monitoring and inspection. The minister said the rate of illegal consumption had immediately dropped in places where state-run companies were handed over to the private sector.
The privatization of electricity grids contributes significantly to service quality and efficiency, he said, stressing that this was of particular importance due to Turkey’s dependency on foreign countries to meet its energy needs. With increased privatization, more freedom in the markets will ensure greater competition among firms, he said.
Şimşek’s remarks came at a ceremony organized to celebrate the handover of an electricity distribution company in the northwestern province of Osmangazi from its previous owner, the state-run Turkish Electricity Distribution Company (TEDAŞ), to Turkish mining company Eti Gümüş on Wednesday. With the Osmangazi grid handover, the number of electricity distribution companies that have been privatized has increased to four, Şimşek noted, adding that these companies provide nearly 28 percent of all electricity used in Turkey.
This power grid provides electricity to some 1.28 million subscribers in the neighboring regions of Afyonkarahisar, Bilecik, Eskişehir, Kütahya, Uşak and Yeşilırmak. The tender for the company’s privatization was held last year on Nov. 6; Eti Gümüş submitted the highest bid, $485 million.
Şimşek is due to travel to Belgium and the Netherlands to hold meetings with officials and will go to Brussels on Thursday. He will deliver a speech as part of a panel discussion on “Economic-Political Dialogue” and meet with representatives of Turkish NGOs in Belgium. The minister will also meet with EU Commissioner for Budget and Financial Programming Janusz Lewandowski.
The minister will proceed to Amsterdam on Thursday night to deliver a speech at a panel discussion titled “The Turkish Economy and Investment in Turkey.” He will also attend a reception along with Dutch Finance Minister Jan Kees de Jager and leading Dutch businesspeople, and is scheduled to speak at another panel discussion hosted by the University of Amsterdam. Şimşek will return to Turkey on Sunday.
Meanwhile, Şimşek is due to Belgium and Netherlands to hold meetings with officials. Simsek who will go to Brussels on Thursday will deliver a speech in a panel discussion titled “Economy-Political Dialogue” and meet with representatives of the Turkish NGOs in Belgium. The minister will also meet with EU Commissioner for Budget and Financial Programming Janusz Lewandowski.
Minister Şimşek will proceed to Amsterdam on Thursday night to deliver a speech at a panel titled “Turkish Economy and Investment in Turkey.” He will also attend a reception together with Dutch Finance Minister Jan Keesl De Jager and leading Dutch businessmen. He will also deliver a speech in a panel discussion to be hosted by University of Amsterdam. He will return to Turkey on Sunday.
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