Local energy firm bids to buy state-seized grid

Local energy firm bids to buy state-seized grid

ISTANBUL – Hürriyet Daily News
Turkish energy firm Zorlu Enerji yesterday announced, by a written statement to the Public Disclosure Platform (KAP), it has submitted a bid to acquire the Osmangazi power distribution network, which serves 1.4 million subscribers in Western Turkey.

Turkey’s energy watchdog (EPDK) seized control of the grid in August on the grounds that it was failing to fulfill the duties it had promised due to its weak finances.

The EPDK also said private companies operating power grids should perform responsibly and act within the principles of providing quality service to consumers.

The Osmangazi power grid was taken over by Yıldızlar SSS in a $485 million privatization deal in 2010.
Yıldızlar Holding had said earlier it secured $375 million of the acquisition cost in loans and it had financed the remaining portion using its own assets.

Osmangazi is the first electricity distribution company seized by the government since the beginning of the government’s privatization wave.