Electricity transmission is the transmission of generated electricity to distribution lines or to consumers connected to the grid through high voltage lines with a voltage level above 36kV. Electricity transmission in Turkey is carried out by TEİAŞ.

On 2 March 2001, within the scope of the restructuring of the electricity sector, the State-owned Türkiye Elektrik Üretim İletim Anonim Şirketi was divided into three separate public economic enterprises: TEİAŞ, Elektrik Üretim A.Ş. and Türkiye Elektrik Ticaret ve Taahhüt A.Ş. TEİAŞ commenced its activities on 1 October 2001.

TEİAŞ, whose capital belongs entirely to the Treasury, is a public economic enterprise subject to the Decree Law numbered 233 on Public Economic Enterprises[1]  (“Decree Law No. 233”) and the Electricity Market Law numbered 6446[2]  (the “Electricity Market Law”). TEİAŞ, like all other public economic enterprises, carries out its activities according to its articles of association (“AoA”).

In accordance with its AoA, TEİAŞ, as a legal entity, is autonomous in its activities and its liabilities are limited by its capital. Without prejudice to the Electricity Market Law, the Decree Law No. 233 and its AoA, TEİAŞ is subject to the provisions of private law but not to the provisions of the General Accounting Law[3], the Public Procurement Law[4] or the audit of the Court of Accounts. TEİAŞ operates under the Ministry of Energy and Natural Resources (the “Ministry”) and its board of directors and senior management are appointed by the Ministry.

Duties and Responsibilities of TEİAŞ

A transmission licence is a licence that a company has to obtain from the Energy Market Regulatory Authority (“EMRA”) in order to carry out transmission activities through existing and prospective transmission facilities. TEİAŞ obtained such transmission licence from EMRA in accordance with the provisions of the Electricity Market Law and is exclusively responsible and authorised for transmission activities in Turkey.

The main duties and responsibilities of TEİAŞ can be summarised as follows:

•           transmission of electricity;

•           taking over all publicly owned transmission facilities;

•           investment planning for new transmission facilities as well as establishing and operating new transmission facilities;

•           preparing tariff proposals relating to its activities in accordance with EMRA’s principles and standards and obtaining EMRA’s approval in respect thereof;

•           supervising the application of regulations relating to grid, balancing and settlement and side services;

•           acting as the system operator by notifying the relevant market participants regarding the de-loading instructions to balance the market’s supply and demand;

•           conducting load distribution and frequency control activities;

•           observing system security on a real time basis;

•           maintaining that the transmission system is being operated in-line with normal operation standards and identifying violations of system usage set out in connection and system usage agreements regarding situations imposing risks on system safety and integrity;

•           making substitutes and capacity increases in the transmission system;

•           conducting international inter-connection activities in line with the decisions of the Ministry, providing transmission and connection services in relation to grid operations to system users including eligible consumers connected or to be connected to the system under the provisions of the relevant legislation without discrimination.

Privatisation of TEİAŞ

The Decree No. 4222 decided that the privatisation of TEİAŞ by way of partial public offering of its shares is to be conducted by the Ministry and the Privatisation Administration and finalised by 31 December 2022. TEİAŞ will thenceforth be subject to the capital markets legislation which applies to publicly listed companies, such as financial reporting, public disclosure, independent auditing and corporate governance in addition to public auditing.

As stated in the Decree No. 4222 and the announcements of the Ministry, the shares of TEİAŞ are to be partially sold and the State will continue to hold a controlling share.

Conclusion

TEİAŞ is operating as a State-owned entity for the past two decades and will now be partially privatised by 31 December 2022. The liberalisation of the Turkish energy market commenced many decades ago and still continues in full speed. If the privatisation succeeds, it remains to be seen how the public and private sectors will function when jointly becoming responsible for transmission activities.