Electricity supply contracts

The activities in the energy sector have been separated by the Electricity Market Law dated 03.03.2001 and numbered 4628. Under the Law, the electricity market activities are listed as generation, transmission, distribution, retail, wholesale, wholesale service, trade, import and export. While there was a monopolist structure in the electricity industry prior to the Electricity Market Law, the monopolist structure of the electricity industry has been removed and an electricity market based on competition has been accepted subsequent to the Law. Under the restructuring, those electricity activities in the nature that may be opened for competition have been subjected to a competitive regime; however, the activities that may not be opened for competition have been subjected to the regulation and supervision of the independent regulatory institutions. The electricity distribution and sale have been intertwined and considered together for long years, both in our country and the other countries. Nevertheless, distribution and sale have been separated from each other by the modern legislation; the electricity sale has been regulated as a separate activity from the distribution. The restructuring of the market has differentiated the elements, the parties and the content of the classical electricity supply contract and paved the way for the electricity trade and the electricity stock markets. In fact, upon the formation of a competitive free market, the electricity supply contract has become two separate contracts of different legal nature as a network connection and network usage contract on one hand, and an electricity sale contract on the other hand.