Problems of Regulatory Reforms in Electricity

Problems of Regulatory Reforms in Electricity: Examples from Turkey

This issue of the Network Industries Quarterly looks into the change in the Turkish electricity markets. The regulatory reform in the Turkish electricity markets began in the 1990s. It has culminated with the privatization of distribution of retail companies in the early 2010s. The enactment of the Electricity Market Act in 2001 was a turning point toward a more competitive market environment. However, the evolution of the reform has not gone perfectly. The transformation of the electricity industry had conflicting consequences for the market structure. The tensions between economic and political preferences have become more prevalent. In this respect, the Turkish experience provides additional insights into issues surrounding the process of opening markets to competition. While regulatory reform seems complete in terms of unbundling, tariff policies and the institutionalization of regulatory processes, competition policy issues begin to surface and political interference become more prevalent.

Guest editor of this issue: Dr Fuat Oğuz

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