Recent Regulatory Changes In The Electricity Distribution Sector

The Electricity Market Law¹ was recently amended by Law No. 5784 (the "Amending Law")². The Amending Law ushers in major changes with significant implications for different electricity market activities, including electricity distribution.

The first key amendment introduced by the Amending Law in this respect is the change in the definition of "distribution facility". The new, broader classification has the objective of bringing greater precision to the term's definition.

Another important amendment concerns electricity used for outdoor lighting, and provides that, apart from the lighting of the highways, a distribution company³ will also be in charge of the outdoor lighting of avenues and streets, the specifics of which will be further defined through ancillary legislation. For the period between 1 January 2009 and 31 December 2015, a special fund controlled by the Undersecretariat of the Treasury is allocated to the consumption expenses related to such lighting.