The decision was announced after an appeal by the Turkish Electricity Trading and Contracting Company (TETAŞ) to pass on the rising costs of electricity generation to retail prices. Current prices will be in effect for another three-month period, the agency said. The EPDK had announced on June 23 that retail electricity prices would be reduced by 3.89 percent for industry and 3.65 percent for households, effective July 1.
Market analysts point to the high cost of natural gas as the main burden of electricity producers. The usage of hydroelectric power plants in electricity generation recently exceeded 32 percent, up from 16 percent, as their reservoirs are close to capacity due to heavy rain, reducing the cost of electricity generation. However, electricity producers are buying natural gas at increased cost from the state-owned Turkish Pipeline Corporation (BOTAŞ), cancelling out the benefits of electricity produced by hydroelectric power plants.
BOTAŞ has increased the price of natural gas it sells to electric power plants by 19 percent since the beginning of the year; prices have remained unchanged for households. An electricity producer currently pays TL 579 for 1,000 cubic meters of natural gas, up from TL 464 in December of last year. The impact of these price hikes is significant because natural gas is an important resource for electricity generation, as 52 percent of natural gas consumed in Turkey is used for the generation of electricity.
The EPDK also declared a Kr 0.35 price increase per kilowatt hour (kWh) for wholesale electricity sold by TETAŞ to electricity distributors. The price hike went into effect yesterday.
Private firms to import 6 bln cubic meters of gas
Energy and Natural Resources Minister Taner Yıldız, speaking at a meeting of the Ankara Chamber of Commerce (ASO) on Wednesday, noted that the private sector would be allowed to import 6 billion cubic meters of natural gas. The government is not planning to renew a natural gas deal with Russia, which envisions 6 billion cubic meters of natural gas being imported by state organs, Yıldız said. Instead, this role will be transferred to the private sector, he noted.
