Turkey's electricity distribution companies deny responsibility for soaring bills

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Electricity distribution companies have denied that they contributed to the sharp increase in electricity prices.

The Electricity Distribution Services Association (ELDER), which represents all distribution companies in 21 specified regions in Turkey, said yesterday (February 14) that their income is determined by the Energy Market Regulatory Authority (EPDK).

"Revenues of electricity distribution companies are determined by five-year periods by the regulatory institution EPDK, independently of electricity tariffs ... for five-year periods and by taking into account consumer benefits," the group said in a written statement.

While it understands public reactions due to high prices, the situation is not "what the public thinks it is," said the association.

Electricity distribution companies deliver electricity to households at prices three to five times the price they pay to the state, according to official figures.

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"The biggest factor in the increase in costs in January is the significant increase in electricity generation costs.

"Due to the drought in our country in the past period, the amount of electricity supplied from hydroelectric power plants, which has the highest share in electricity production, has decreased. This situation has raised the share of natural gas and coal, which are imported resources, in electricity generation.

"The biggest reason for the increase in energy costs is the significant increase in the purchase costs of imported natural gas and coal, which are indexed to international prices and foreign currency.

"In the past year, natural gas prices have increased up to 10 times, and imported coal prices have increased up to five times on a foreign currency basis." (HA/VK)