Gradual Tariff Period Begins in Electricity

Gradual Tariff Period Begins in Electricity
Gradual Tariff Period Begins in Electricity

📩 25/11/2021 14:54

In electricity, the pricing period is based on the amount of usage. It is expected that the “Graduated Electricity Tariff” proposal submitted to the Turkish Grand National Assembly with the law proposal numbered 2/3950 and dated 16.11.2021 is expected to be accepted and to come into force as of January 1, 2022, but no official statement has been made yet. With the start of the gradual tariff period in electricity, the bills of consumers who use relatively little electricity will become cheaper, while energy savings will gain importance in households that use a lot of electricity. Stating that a new and bright era has been entered in electricity, Çağada Kırmızı, the founder of electricity suppliers comparison and replacement site, said: said.

The gradual increase in electricity and natural gas prices has been causing controversy for a long time and occupying Turkey's agenda. The fact that the Energy Market Regulatory Authority (EMRA) did not update electricity prices last October created an uncertainty in the electricity market. While this uncertainty continued, Justice and Development Party Deputy Osman Boyraz and 53 deputies submitted a proposal to the Turkish Grand National Assembly on 16 November regarding the transition to the “Graduated Electricity Tariff”. If this proposal submitted to the Parliament is accepted, the necessary updates will be made in the Electricity Market Law No. 6446, and the gradual tariff period in electricity will begin.

The proposal will be discussed in the commission.

Stating that the gradual tariff on electricity bills is currently on the parliamentary agenda and will be negotiated in the commission, Minister of Energy and Natural Resources Fatih Dönmez announced that they are working on a similar application for natural gas. Stating that this application will encourage efficient use of electricity, Minister Dönmez stated that they are planning to switch to a two-stage tariff study, especially in the winter months, during periods when citizens' consumption is high, with a similar application for natural gas.

What is a gradual electricity tariff?

Gradual electricity tariff is the separation of consumer groups covering certain consumption limits by looking at their consumption rates and applying different electricity unit prices to each group. The gradual electricity tariff is initially expected to be applied only to the residential subscriber group. It is stated that the expected consumption limit to be applied is 130 kWh and 150 kWh per month (115 TL and 137 TL electricity bill cost). Eligible consumer practice in electricity started to be implemented with the Electricity Market Law No. 2001, which came into force in 4628, and consumers consuming more than a certain limit had the right to change their electricity supplier. Every consumer who exceeded the annual consumption amount determined by the Energy Market Regulatory Authority (EMRA) could save money by replacing the electricity supplier with a distance contract, such as a mobile phone operator, but current discounted tariffs were not available as the national tariff applied for household consumers was almost half of the real market costs. However, with the gradual electricity tariff, even if the limit set for household electricity consumers is increased, the way to change suppliers will be opened.

Those who use less electricity will pay bills at a low price.

Since the gradual electricity tariff limit is expected to be between 130 kWh and 150 kWh per month (115 TL and 137 TL electricity bill cost), residential subscribers consuming below this limit use less electricity than the current electricity unit price, and the consumption of consumers above this consumption is priced much higher. Waiting. In the system implemented so far, regardless of the amount of consumption, everyone pays the electricity bill at a fixed unit price, and with the new gradual system, savings will arise.

A similar model is applied in industry and trade.

A relatively large-scale example of the gradual tariff model to be implemented for homes has been in practice for a while for the industrial and commercial subscriber group. Accordingly, while pricing is made with a variable tariff based on market costs for producers and workplaces with electricity consumption of approximately 250 thousand TL or more, national tariffs determined by EMRA are taken into account for those consuming electricity below 250 thousand TL. While the recent increases in electricity costs are reflected directly on consumers above this limit, they are reflected in tariffs that are updated quarterly on those with consumption below this limit.

Tariff will promote energy saving

Experts emphasize the necessity of new applications for Turkey, which is not very efficient in terms of natural energy resources. Many experts are of the opinion that keeping electricity prices relatively low for residences while increasing for industry and workplaces in the current period, causing unnecessary energy consumption in homes, high pricing for those who consume more and lower pricing for those who consume less will facilitate energy savings. If the proposal is accepted, the expensive pricing for those who consume a lot of electricity will also be considered as an incentive to save at some point and will relieve both the country's economy and the citizens' pockets.

How will it affect the consumer?

Commenting on the gradual tariff application in electricity, Çağada KIRIM, the founder of, said:

“A system called cross-subsidy was applied in the electricity market, and while the electricity prices in the houses were kept low in the current situation, the load was placed on the backs of industrialists, workplaces and agricultural irrigation producers. However, while households paid less electricity bills, the prices of everything from needle to thread were increasing due to the high electricity prices of the producers. With the subsidization of home electricity prices to other subscriber groups, consumers were paying more than they paid for their household electricity bills in grocery shopping. However, this approach had a negative impact on the economy, and it was decided to make the subsidy not to other subscriber groups, but between those who consume a lot and those who consume less. Thus, electricity prices, which are one of the most important cost factors of all goods and services, will be kept low for producers and tradesmen, and the news of price hikes we are used to hearing will decrease. If we look at the European example, we see that the cheapest electricity is used by producers and tradesmen, while the price of houses is 50 percent higher on average. This, in turn, makes the entire economy more robust and allows households to access other goods and services much more easily, even if they pay more for their electricity bills. I guess and hope that the right models will be taken into account and it will be possible to say the same for our country's consumers. Our expectation is that this tariff will come into effect from 1 January.”

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