Industrial and workplace electricity increases by 86%

Industrial and workplace electricity increases by 86%


In its latest decision, the Energy Market Regulatory Authority (EMRA) has extended the scope of application of the Tariff for the supply of the last resource and reduced it to 1 million kilowatt hours of electricity consumption per year, excluding the group of residential subscribers. What this means for consumers is as follows; Electricity prices for consumers who consume 80,000 TL or more per month will no longer be determined by tariffs, but by electricity spot market prices. This means that from July 1, the electricity prices of consumers remaining in this group will increase by up to 86% in the first stage.


With the entry into force of the regulation on July 1, the electricity price of consumers paying a monthly electricity bill of 80,000 TL or more will now be reduced to spot market prices, Renewable Energy Resources Support Mechanism (YEKDEM) will be formed by adding a coefficient of 9.38% to the amount paid for it. According to current expectations, the price of electricity in the spot market in June will be 3 TL. While electricity prices in the spot market are expected to be 3.2 TL in July, the electricity price of these consumers will be 3.5 TL with the coefficient to be added. This means a 71% increase in the cost of energy in industry and 86% in businesses.


On the one hand, this means that electricity prices for consumers who pay electricity bills above 80,000 TL are updated every month, but when macroeconomic conditions and global energy prices are taken into account, it is assumed that the prices will increase each month. As electricity consumers in this segment form the backbone of generation and consumer products, price increases will inevitably affect all consumer products.


A price cap is applied in the electricity spot market and the current price cap is applied at 3.2 TL per kilowatt hour. Affirming that under these conditions, participation in the free market is of paramount importance both for industrialists and traders and for the economy of the whole country. Cagada Kirim, founder of and energy economist, summarize the request as follows:

Consumers of 80,000 TL or more are now excluded from the scope of the national tariff and prices will be determined in the spot market. Although this meant an 86% increase in workplaces in the first stage, the importance of switching providers has increased significantly. Participation in the free market has become essential for consumers in this context. If consumers do not change supplier, the coefficient to be applied of 9.38% may decrease to negative rates if they change supplier. It is important for consumers to know that the highest coefficient is 9.38% when collecting offers from suppliers, and lower prices are attractive.


Emphasizing that the request will come into effect on July 1 and that the deadline for switching electricity supplier on July 1 is June 3, Crimea said, “Perimeter consumers must complete their change of supplier requests by June 3 at the latest, or they will inevitably face a steep hike” he said.



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