Regulatory and market disharmony in the Turkish electricity industry

Emin Köksal; Şahin Ardıyok

doi:10.1016/j.jup.2018.10.001

Regulatory and market disharmony in the Turkish electricity industry

Emin Köksal, Şahin Ardıyok

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

We examine the regulatory and market disharmony in the Turkish electricity industry revealed in the course of introducing competition in retail supply. We specifically show that the design of the support mechanism for renewable energy resources and the level of regulated retail tariffs have left little room for the viability of retail competition in the electricity sector. While the cost of the support mechanism has increased the cost for retail suppliers, the regulated tariffs prevent them from reflecting this cost increase in their prices and from providing commercial offers. This induces customers to switch back to their default regulated tariffs.

Original language	English
Pages (from-to)	90-98
Number of pages	9
Journal	Utilities Policy
Volume	55
DOIs	https://doi.org/10.1016/j.jup.2018.10.001
Publication status	Published - Dec 2018
Externally published	Yes

Keywords

Competition in retail electricity supply
Regulated tariffs
Renewable energy support mechanism

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.jup.2018.10.001

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abstract = "We examine the regulatory and market disharmony in the Turkish electricity industry revealed in the course of introducing competition in retail supply. We specifically show that the design of the support mechanism for renewable energy resources and the level of regulated retail tariffs have left little room for the viability of retail competition in the electricity sector. While the cost of the support mechanism has increased the cost for retail suppliers, the regulated tariffs prevent them from reflecting this cost increase in their prices and from providing commercial offers. This induces customers to switch back to their default regulated tariffs.",

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N2 - We examine the regulatory and market disharmony in the Turkish electricity industry revealed in the course of introducing competition in retail supply. We specifically show that the design of the support mechanism for renewable energy resources and the level of regulated retail tariffs have left little room for the viability of retail competition in the electricity sector. While the cost of the support mechanism has increased the cost for retail suppliers, the regulated tariffs prevent them from reflecting this cost increase in their prices and from providing commercial offers. This induces customers to switch back to their default regulated tariffs.

AB - We examine the regulatory and market disharmony in the Turkish electricity industry revealed in the course of introducing competition in retail supply. We specifically show that the design of the support mechanism for renewable energy resources and the level of regulated retail tariffs have left little room for the viability of retail competition in the electricity sector. While the cost of the support mechanism has increased the cost for retail suppliers, the regulated tariffs prevent them from reflecting this cost increase in their prices and from providing commercial offers. This induces customers to switch back to their default regulated tariffs.

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KW - Regulated tariffs

KW - Renewable energy support mechanism

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Regulatory and market disharmony in the Turkish electricity industry

Abstract

Keywords

UN SDGs

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