Evaluating sectoral developments and energy policies to journalists, Erdeniz stated that according to the regulation made by EMRA within the scope of the last resource supply tariff in electricity, residential and commercial subscribers with an annual consumption of 5 thousand kilowatt hours will no longer be able to benefit from subsidies in electricity.
Stating that they think it is right for segments of the population whose income is above a certain level to make payments within the scope of the cost-based price policy, Erdeniz continued as follows:
“As an industry, we have been advocating the transition to a cost-based tariff in electricity for a long time. There is a 2.5-month period in which we can convey how the new era will develop with correct communication. We provide great support to this process. I can say that the step taken is very correct. In fact, in the short and medium term, we can achieve a rapid “In this way, we think that the declared last resource supply limit should be lowered, while the households that really need to be supported, defined as fragile consumers or consumers in need of protection, should be supported, while the rate of 5 thousand kilowatt-hours should be brought closer to levels that will reduce the subsidy burden on the public.”
Stating that as of today, the supported first level of the housing bill corresponds to 496 liras, Erdeniz said, “The real cost of this is 3 thousand liras. Let me continue to buy electricity for 496 liras, charge my electric car, and heat with electricity.” How true is that? There is a burden of billions of dollars on both distribution companies and relevant institutions. “Therefore, we argue that this is not sustainable, that a cost-based energy policy and pricing policy should be returned, and therefore the last resource supply limit should be reduced in the medium term,” he said.
Erdeniz stated that the sector managed to support energy supply security by investing 2.2 billion dollars in 2023, despite the subsidy burden and accumulated receivables.
Pointing out that energy consumption will increase with the transformation in the energy sector, Erdeniz said, “As electricity distribution companies, we need a minimum investment of 20 billion dollars in the next 8-10 years to keep up with this transformation. If this investment can be made, the backbone can serve this transformation. Therefore, we need to prepare for this.” .” he said.
Stating that a radical transformation is required in the energy infrastructure, Erdeniz said, “While there are currently 3 electric vehicles on a street, this number will increase to 20 or even 100 in a short time. There is no problem in meeting the power and energy demand today. However, if we do not make the necessary investments, the current “The system may not be able to meet this increasing demand. If everyone wants to be able to charge their cars whenever they want or operate their home electrical devices without any problems, the energy grid must be strengthened and transformed.” he said.
Emphasizing that renewable energy transformation is of critical importance for Türkiye, Erdeniz continued as follows:
“As you know, Mr. Minister has recently revealed the targets regarding this. We want to produce local and national energy. We are starting a process regarding this, but this process is not just about the production aspect. The transmission, distribution, delivery of the produced electricity to the consumer and the management of this system are in itself For example, what you call a smart meter requires a serious investment. Smart meters require the use of information technologies and software facilities along with smart digitalization. All of these mean big investments. Maybe we will see a decrease in the production cost, the world conjuncture is progressing like that. However, there is a lot to do on the system management and network side of the issue. This is where distribution companies come into play. We do not have the chance to connect more electrification and renewable resources to the grid with the networks of the 20th century, where digitalization is increasing and everything runs on electricity. “We need to be ready for a much more flexible and fluctuating system with factors such as distribution, production, renewable production and intermittent production in the world.”
Pointing out that especially the distribution network needs to be transformed with very large investments, Erdeniz said, “At the point where we cannot solve this problem, we will not have the chance to reach the rates and figures we have planned for neither electric vehicles nor our renewable energy targets.” made his assessment.
