New system in electricity distribution in Turkey

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New system in electricity distribution in Turkey
Oluşturulma Tarihi: Şubat 23, 2009 00:00

ANKARA - A new system is being set up for electricity distribution, launching a new period focusing on consumers, said the Turkish energy watchdog chief.

The consumer-focused new phase is based on many areas, such as sustainability of investments, supervision, tariffs, collection, technological innovations and service diversity, according to Hasan Köktaş, chairman of the Energy Market Regulatory Agency, or EPDK.

The private electricity distribution firms’ meeting with the EPDK chairman, its board members, the Privatization Administration Vice-Chairman Ahmet Aksu, Energy Ministry and the Turkish Electricity Distribution Company, or TEDAŞ, focused on the private firms’ first operations as well as their problems.
Some private company representatives at the meeting stressed that they took over a distribution system that has "high rate of electric loss and leakage, frequent malfunctions, collection problems, particularly regarding public debts, and lacks automation."

In order to overcome these problems, private distribution companies should have robust financial structure and be strong enough to sign long-term contracts, company managers said, expecting new arrangements in the collection of lightening costs and electricity debts as well as in monitoring investments.

During the meeting, British International Power experts made presentations on the results of the privatization of the electricity distribution and generation plants that have taken place in the United Kingdom since 1990.

Within the last six months, 25 percent of the electricity distribution has shifted to private sector with the privatization of four regions including 24 cities in Turkey, said Köktaş, adding that the rate is expected to increase throughout this year and reach 30. He said the private companies would increase service quality with constant investments.

Regarding the new system in electricity distribution, he said, "In the upcoming period, consumers will obtain more qualified and continuous service, and electricity distribution companies will have crucial contribution in electricity supply security."

As a result of the privatizations and handovers, seven private companies that have undertaken electricity distribution, including Sabancı, Akcez, Aydem, Alarko and Kiler, have launched their operations. During their initial activities, the companies focus particularly on supplying more qualified and continuous service to subscribers. The companies also prioritize developing automation systems to monitor subscribers.

The electricity distribution companies that have been or will be handed over to private sector include Akedaş, Aras EDAŞ, Aydem EDAŞ, Başkent EDAŞ, KCETAŞ, Meram EDAŞ and SEDAŞ.
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