80 pct of electricity network to be nationalized

Around 80 percent of existing electricity distribution facilities needs to be nationalized, a transaction which is expected to cost approximately $7 billion. The required nationalization transactions, which are approved by the Energy Market Regulatory Authority as a part of the Electricity Market Law, are being carried out for license holder distribution companies by the Turkish Electricity Distribution Company (TEDAŞ) in line with the principles of Nationalization Law. Following the privatization of electricity distribution services, TEDAŞ is mainly carrying out nationalization studies. TEDAŞ owns the entirety of inventories held by privatized distribution companies. As the companies are transferred operational rights for 30 years, all electricity wires, poles and transformers set up within this period, are owned by TEDAŞ. The nationalization transactions of newly built facilities are monitored by TEDAŞ while their costs are paid by private distribution companies. The companies take back the payments they make in accordance with a price list. The newly built facilities have also pending nationalization costs. Around 80 percent of existing facilities have not yet been nationalized. According to TEDAŞ, the nationalization costs of existing un-nationalized facilities are estimated to be around $7 billion. It is projected that nationalization studies will be completed in 20 years due to large-scale transactions. A TL 350 million worth of income is needed annually for expropriation. TEDAŞ needs to be funded in order to meet nationalization costs.