Exorbitant increase in the tariff may halt investments

Exorbitant increase in the tariff may halt investments
Date: 10.2.2021 12:00

Reactions to the increase rates of the Transmission System Usage and System Operation Tariff that started to be implemented with the new year and the "Distribution Tariff for Producers" approved by Energy Market Regulatory Authority (EPDK) continue.

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It is noted that the announced increase rates are well above the annual inflation rate announced as 4.6 percent and this situation will be quite challenging for electricity producers and even cause energy investments to stop.
Ali Karaduman, Vice President of the Renewable Energy Research Association (YENADER), said, “Our domestic and national energy potential is very important for our country. We must support the renewable energy sector and its producers, which are extremely important in getting rid of global competition and foreign dependency in energy. "The high rate of increase in the distribution tariff that the producers who are connected to the distribution system are subject to will put the producers in a very difficult situation in these troublesome processes."


Emphasizing that such unforeseen cost increases will damage the investment environment in the energy sector and cause investors to escape from new investments, Karaduman said:
"This situation will lead to the emergence of supply security risk in the medium and long term. The transparency of the investment environment will be damaged, and potential investments will stop, financial institutions and investors will start to move away from energy projects rapidly, and these increases need to be reviewed urgently without further damaging the energy market."


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