The high rate hikes in electricity and natural gas, the last gift of 2021, adversely affected both households and producers. Price increases have reached levels exceeding the ability to pay in the last year. Electricity prices, examined by Union of Chambers of Turkish Engineers and Architects (TMMOB), increased by 72-158% in residences, 159% in businesses and industries, and 120% in agricultural irrigation. While the TURKSTAT CPI rate is 36%, electricity prices are between 75-160%, which shows that this tariff has exceeded everyone.
Companies are protected
It is claimed that the understanding aiming to grow with construction in the last 20 years has taken care of the construction companies, as well as the electricity companies now. It is stated that with the "Renewable Energy Resources Support Mechanism" (YEKDEM), which is still in progress, billions of liras from public resources are transferred to private electricity companies. While EPİAŞ announced in January that the highest price that could be offered was 134.5 kuruş/kWh, the fact that EMRA kept the energy costs in the electricity price tariffs much higher than these figures is an indication of this.
Progressive Billing
The gradual determination of tariffs for dwellings is another negative development. According to this, “low voltage (LV) single-time subscriber group tariff in residences will be charged 50% for electricity unit prices below the daily average consumption of 5 kWh (150 kWh/month) based on the invoice; A step contrary to the standard of living was taken by increasing the electricity unit prices above the daily average consumption of 5 kWh by 125%. Because “the monthly minimum electricity consumption of a 4-person household in Turkey is 230 kWh”.
Unused Fee
It was not only electricity prices but also natural gas prices that did not take into account the standard of living. Gas sales prices of Petroleum Pipeline Corporation (BOTAŞ); With the high rate hike in January 2022, it increased by 47% for residential subscribers, 76% for commercial and small industrial enterprises, 345% for large industrial enterprises, 290% for power plants. In addition to the hikes, "the system usage fees that private natural gas distribution companies add to the price of the gas they buy from BOTAŞ and that constantly increase" have reached one third of the amount paid by the consumer.
Timing of Raises
The timing of the hikes is as significant as their rates. Because although Energy Market Regulatory Authority (EPDK) has the "authority to regulate electricity prices quarterly, 4 times a year as per the legislation", it did not use this authority on October 1, 2021, and the hikes were announced on the last day of the year. If the hikes in electricity prices were announced at the beginning of December, it would be reflected in the salaries of public employees and pensioners with inflation data! When the effective date of electricity and natural gas hikes was January 1, 2022, these high increases were excluded from the inflation calculation. Thus, “a significant part of the salary-wage hikes was taken back with the hikes made”.
Sectoral Negativities
Energy hikes have adversely affected both daily life and production. Although the agriculture and food sector is 70% foreign-dependent for basic inputs such as diesel, fertilizer, medicine, feed, and seeds, it has difficulties in production due to these hikes. Industrial facilities, where natural gas is an industrial input, will increase the cost of living exponentially by reflecting the 345% price increase on their costs and product sales prices.
Another factor that increases the costs is the increase in fuel dealer sales prices in the transportation sector by 79% in unleaded gasoline, 92.8% in diesel, and 124.9% in autogas in the last year. Although the reasons for these increases are "the volatility in world oil prices, the rapid depreciation of the TL and the high taxes on petroleum products", it also shows that the line of being a self-sufficient country has been lost. Implementing a high price hike and restricting energy is a bill of unplannedness.
Friend of the Hard Day
Being an industrialist, household and the guarantor of our future is not possible with an economy where what is given with a spoon is taken with the ladle. In the face of rapidly increasing prices, it is a necessity of the social state to bring low wages and low-income people to a “livable” level. At this point, the main task of state institutions is not to serve markets and companies, but to protect their people.
There is a need for similar examples as the fuel increase is deducted from the tax. VAT rate on electricity, natural gas and water should be reduced to 1% in residences. Electricity, gas and water should not be cut off for those who cannot pay their bills, and parts of them that include their standard of living should be covered with public support. We must be friends of our people in hard times, otherwise we will continue to live together the pride (!) of being both the world's 20th economy and the 22nd in the world's poverty rankings.