Energy companies to pay back 11 billion Turkish Liras

Energy companies to pay back 11 billion Turkish Liras

Neşe Karanfil - ANKARA
Energy companies to pay back 11 billion Turkish Liras

The amount that the Energy Market Regulatory Authority (EPDK) is demanding back from some energy companies due to their transactions in violation of the system within the maximum settlement price mechanism (AUF) has been finalized as 15.3 billion Turkish Liras ($810 million) with interest.

The companies have paid 4 billion liras so far, and they will have to return another 11 billion liras.

Following the start of the Russia-Ukraine war, some countries took new measures against the rising energy raw material prices. One of those measures, AUF, was put into effect in Türkiye in April last year. The EPDK then extended the regulation for another six months in October due to the cost increases in imported energy raw materials such as natural gas and coal due to global developments.

As the AUF process began, bilateral agreements made in accordance with market conditions within the scope of the resource-based support mechanism were exempted. The EPDK examined the realization values of the prices and quantities of all agreements declared within the system, and as a result of these examinations, price movements contrary to the system were detected. Around 40 companies were asked to repay 11 billion liras.

Energy officials emphasized that the payment is not a penalty but a repayment of the unjustly taken amount. If a company refuses to pay, it is deducted from its receivables and collaterals at EXIST. According to the information given by the experts, it was noted that this amount, which exceeds 15 billion liras, will mean a decrease in the costs of all consumers from the AUF pool.

On the other hand, it was stated that the defense process continues in the investigations opened by the EPDK against the relevant companies. As a result of the evaluation of the defenses, the necessary penal action may be applied, excluding the differences arising from imbalance or technical reasons.

According to the information provided by experts, the stay of execution decision issued upon the application of a company regarding a transaction made within the scope of the AUF was lifted as a result of EMRA’s objection. Noting that there is no stay-of-execution decision regarding AUF, energy sector officials emphasized that the security of supply is of great importance in the current period.

The amount to be reimbursed by the companies will not be reflected on the bills as a direct discount. Reimbursements will be made to EXIST and collected in the AUF payments pool. When the EPDK calculates costs for electricity tariffs, costs will decrease as there will be extra income in the pool. This will ensure that there will be no hike, or the rate of increase will be reduced.