The sustainability of Turkish electricity distributors and last-resort electricity suppliers: What did transition from vertically integrated public monopoly to regulated competition with privatized and unbundled firms bring about?

• Published in: Utilities policy 2016-04, Vol.39, p.50-67
• Main Authors: Özbuğday, Fatih Cemil, Öğünlü, Bilal, Alma, Hasan
• Format: Article
• Language: English
• Subjects: Competition; Distributors; Electric power; Electricity; Electricity distribution; Electricity supply competition; Financial soundness; Market structure; Markets; Monopolies; Quality of electricity distribution; Sustainability; Transparency; Turkey; Utilities
• ISSN: 0957-1787; 1878-4356
• DOI: 10.1016/j.jup.2015.10.003

The Turkish electricity distribution and electricity supply businesses have been substantial affected by the transition from a vertically integrated public monopoly model to a model of regulated competition with privatized and unbundled firms. We analyze how select elements of sustainability have been and will be affected by this transition. Specifically, we consider transparency of the electricity market as a whole and implications for electricity supply and distribution, the financial soundness of the electricity distribution industry, the quality of electricity delivered by the distributors, and the competitiveness of the electricity supply business. The key finding is that little if any progress toward sustainability has been achieved. We conclude that there remains much for policymakers to do to establish a sustainable market structure. •The architecture of Turkish electricity market has changed.•The change has implications for the sustainability of the market and the companies.•Sustainability elements are transparency, quality, financial soundness, competition.•Discussions show that little is achieved for the elements of sustainability.•There is much to do by policymakers to establish a sustainable market structure.