Gov’t mulls 25 pct electricity discount for businesses

Gov’t mulls 25 pct electricity discount for businesses

Gov’t mulls 25 pct electricity discount for businesses

The Turkish government is working on arrangements to reduce electricity bills some 25 percent for businesses, Energy and Natural Resources Minister Fatih Dönmez has said.

“A multiple-grade tariff will be brought for small businesses. A discount of 25 percent is being considered for the low-consumption grade,” he told a private broadcaster on Feb. 17.

“For households, a new arrangement in favor of fellow citizens is being prepared,” he added.
Energy and Natural Resources Ministry experts are devising a plan with different options, expected to be submitted to the cabinet soon, according to the minister’s remarks.

Last month, a gradual tariff was introduced for households’ consumption, and the Energy Market Regulatory Authority (EPDK) set the limit in the two-grade electricity billing system as 150 kilowatt-hours.
Under the new tariffs, consumption up to 150 kilowatt-hours (kWh) a month would cost 1.37 Turkish Liras per kWh, and consumption above this limit would cost 2.06 liras, corresponding to 50 percent and 127 percent increases in electricity prices. However, the limit was later lifted to 210 kWh.

According to the plans under consideration, the VAT rate in electricity prices, which currently stands at 18 percent, could be slashed for households.

The plan also includes a proposal to increase the 210 kWh limit in the gradual electricity tariff to further up to 240 kWh.
Meanwhile, the Family and Social Services Ministry on Feb. 18 started receiving applications for natural gas benefits. According to the scheme, some 4 million eligible households will receive natural gas benefits between 450 and 1,150 liras ($33 and $84.3).

Turkey, Economy,