Newsletter-21

Proposed Exposure Draft to Amend the Regulation on Unlicensed Electricity Generation* Gaye Spolitis Introduction The Turkish Electricity Market Regulatory Authority (“EMRA”) prepared a draft Exposure Draft (“Draft”) to amend the Regulation on the Unlicensed Electricity Generation (“Regulation”) 1 that was sub- mitted for the public in November, 2015, for commentary and review from market players, investors, legal and business advisors. The Draft is an indication of the will from the regulator and a projection of a possible legislation; therefore, this short article highlights the main issues of consideration prior to the publication and entry into force of the Draft. The main amendments proposed in the Draft amends connection principles, selection of connection points and technical application process, and a restriction on mergers and spin-offs of generation fa- cilities. The Connection Principles and Connection Application The power generation facilities that are subject to the Regulation shall be connected to the distribution systems. Although the Regulation already establishes certain principles for connections of power distri- bution, the Draft introduces new provisions. According to the Draft, when the Turkish Electricity Transmission Corporation (“TEIAS”) al- locates additional capacity to the substations already having maximum * Article of January 2016 1 Regulation on the Unlicensed Electricity Generation on the Electricity Market (“Regulation”) entered into force in the Official Gazette dated July 21, 2011 (No.28001).