Our Information Note on EMRA’s time extension decision in light of COVID-19 has been published.

1. INTRODUCTION

In its meeting dated 2 April 2020, the Energy Market Regulatory Authority (“EMRA”) determined that the COVID-19 pandemic is to be classified as “force majeure” within the scope of article 35 of the Electricity Market Licensing Regulation[1] (the “Licensing Regulation”) and article 19 of the Regulation on Unlicensed Energy Generation in the Electricity Market[2] (“Unlicensed Regulation”). Accordingly, pursuant to EMRA’s board decision published in the Official Gazette dated 4 April 2020 and numbered 31089 (the “Decision”), licensed and unlicensed projects which possess the qualifications set out in the Decision will be granted a time extension of 3 months.

2. SCOPE OF THE DECISION
   
   
   
   
   1. Time Extensions on the basis of the Licensing Regulation  
   
   
   
   

According to the Decision, the following time periods with respect to obligations of preliminary or generation licence holders expiring on or after 10 March 2020 will be granted a time extension of 3 months which will be effective automatically (without the need for any separate application) and as of the relevant date of expiry:

• preliminary licence periods;


• additional periods provided for completing the obligations in respect of pre-construction or construction phases within the scope of generation licences;


• additional periods provided to generation licences issued prior to the enactment of the Licensing Regulation according to provisional article 15 of the Licensing Regulation;


• time periods as to obligations pertaining to the amendment of preliminary or generation licences;


• time periods as to obligations pertaining to merger or demerger transactions;


• time periods as to obligations pertaining to the granting of licence renewals;


• time periods as to the completion of necessary information and documentation within the scope of preliminary or generation licence applications; and


• time periods as to preliminary licence amendments as set out in article 18(2) of the Licensing Regulation.
  
  
  
  2. Time Extensions on the basis of the Unlicensed Regulation
  
  
  
  

Connection agreements of real and legal persons for generation facilities foreseen to be installed on the basis of the Unlicensed Regulation expiring on or after 10 March 2020 will be granted a time extension of 3 months which will be effective automatically (without the need for any separate application) and as of the relevant date of expiry.

3. CONCLUSION

The Presidential Decree No. 2020/4[3] published in the Official Gazette dated 22 March 2020 and numbered 31076, which has been adopted as part of the measures to mitigate against the adverse effects of COVID-19, implemented a remote and flexible working model for public servants.  Accordingly, a time extension of 3 months has now been granted in order to prevent preliminary or generation licence holders or connection agreement holders in the context of unlicensed generation activities to suffer from such remote and flexible working practice (since applications will pile up and not be dealt with as timely as before).

Whether EMRA will adopt a similar time extension decision with respect to other electricity market activities (such as vis-à-vis YEKDEM) will remain to be seen.