BRIEF HISTORY OF TURKISH POWER SYSTEM AND
FOUNDING OF TURKISH ELECTRICITY AUTHORITY (TEK)
The first power generation in Turkey had been from a 2 kW
dynamo connected to water-mill in Tarsus-MERSİN, in 1902. In 1913, Silahtarağa
Power Plant was put into service. Operating the power industry under the
leadership of State was started upon the establishment of Etibank in 1935 by the
Law No: 2805. Following 1948, a big number of thermal and hydraulic power plants
constructed by DSİ (State Hydraulic Works) and with the supports of MTA (General
Directorate of Mineral Research&Exploration), EİEİ (General Directorate of
Electrical Power Resources Survey and Development Administration) and İller
Bankası (Bank of Provinces), were connected to national power grid.
In the terms of First (1963-1967) and Second 5 Year
Development Plan (1968-1972), unification of power generation, transmission
distribution and trade services under a roof of integrated system of a state
owned enterprise was anticipated as the plan target. In the direction of this
target and strategy, Turkish Electricity Authority (TEK) was founded by the Law
No:1312 and dated 15.07.1970 aiming at the rendering of generation,
transmission, distribution and trade of electricity services needed by the
country as per the general energy and economy policies of the State.
By the Law No: 2705 enforced on 10 September 1982, the
electric facilities of Municipalities and unions were handed over to TEK and
thus unification in the field of power was achieved.
The personnel together with the working fields they occupied
at the Bank of Provinces which were excluded from the scope of the Law No: 2705,
were transferred to TEK with the same functions against an agreement between the
establishments in July 1986, thus the expected unity/integrity was ensured.
Privatization of TEK was anticipated in 5. Five Year
Development Plan (1985-1989) and 6. Five Year Development Plan (1990-1994) as
well as in Economical Measures Implementation Plan, 1995 Transition Plan and
Regarding the privatization application which launching was
put in the agenda of power sector within the context of objectives and
strategies of Development Plan and Government Program, following laws were
- Law No: 3096 and dated 04.12.1984 on the assignment of
entities for generation, transmission, distribution and trade of electricity
other than TEK,
- Law No: 3291 and dated 28.05.1986 on the Privatization of
- Law No: 3974 and dated 22.02.1994 on privatization of TEK
and amending additional provisions to the Law No: 3291,
Law No: 3996 and dated 08.06.1994 on performance of certain investment
services within Build-Operate-Transfer Scheme,
Law No: 4046 and dated 24.11.1994 regulating the privatization
applications and amending certain Decree-in-Laws,
Law No: 4105 and dated 27.04.1995 altering the above,
Law No: 4283 and dated 10.07.1997 regulating the construction and
operation of power generation facilities and energy sales under Build-Operate
Basic provisions of the Law No:3974 on the privatization of TEK via asset sale
was annulled by the decision of Constitutional Court dated 10.12.1994. Through
this decision, privatization of state electric utilities via asset sale was
blocked, despite to that, the gate to privatization by transfer of operational
rights was opened as per the Law No:3096 and 4046. In this context, operational
rights of Çayırhan Power Plant (1-2 units in 2000, 3-4 units in 2001) were
transferred to private sector for 20 years.
As per the
Decision of the Council of Ministers No:93/4789 and dated 12.08.1993 which was
issued depending upon the Decree-in-Law No:233, TEK was split into two separate
state economic enterprises namely, Turkish Electricity Generation Transmission
Co. (TEAŞ) and Turkish Electricity Distribution Co. (TEDAŞ) .
ESTABLISHMENT OF TURKISH ELECTRICITY TRANSMISSION CO. (TEİAŞ)
and Guarantee Agreement concluded with the World Bank on 15.05.1998, has
provided legislative arrangements for the establishment of a “National
Transmission Company” in power sector.
The Law No:4501 and dated 21.01.2000 has provided the international arbitration
in the industry, while the works for the alignment to the EU’s acquis
communautaire and resctructuring of the sector accordingly have been launched.
restructuring through its privatization has been envisaged also within the
framework of the “Program for Economic Stability and Fighting Inflation” which
was implemented by the Government in 2001.
Main tasks of this program have been the restructuring of the power sector,
transition into a free electricity market, ensuring free competition, setting up
of separate companies for generation, transmission, wholesale and distribution
of electricity and ultimately privatization of the all public entities other
than that of transmission.
Thus, in accordance with the Decision of the Council of Ministers No:2001/2026
which was issued as per the Article 3. of the Decree-in-Law No:233 and the
Electricity Market Law No:4628, dated 20.02.2001 enforced on 02.03.2001, TEAŞ
has been restructured in three separate state economic enterprises in the status
of joint-stock companies under the titles of Turkish Electricity Transmission Co.
(TEİAŞ) Electricity Generation Co. (EÜAŞ) and Turkish Electricity Contracting
and Trading Co. (TETAŞ).
In compliance with the general economy policies of the State, TEİAŞ has been
activated on 01.10.2001 so as to take over the all transmission facilities in
the country and to carry out the planning of load dispatch and operation
TEİAŞ, being a state owned enterprise under the Decree Law No:233 and within the
framework of the existing legislation and Articles of Association, has been
acting in compliance with the new market structure depending upon the the
transmission licence obtained from Electricty Market Regulatory Authority (EMRA)
TEİAŞ’s Articles of Association has been approved with the resolution of High
Planning Council (HPC) No:2001/T-19 and dated 11.06.2001 and enforced after its
publication in the Official Gazette No:24447 and dated 29.06.2001.
Basic objective of the Electricity Market Law No:4628 is, for the supply of
electricity in a sufficient, quality, uninterrupted, low-cost and environment
friendly manner to consumers, to establish a financially strong, stable and
apparent electricity market functioning as per special law provisions in
competitive environment; to determine the legal, technical and financial
criteria of the electric utilities in the portfolio of privatization where
private companies would also take part in so-called market conditions open to
competition and to ensure an independent regulation and control in such market.