Recent Development
The Energy Market Regulatory Council (“EPDK“) recently published a new Regulation on Consumer Services in the Electricity Market (“Regulation“), introducing new provisions for bilateral agreements to be executed between consumers with low consumption rates and electricity suppliers and repealing the previous regulation dated May 8, 2014.
Provisions of the Regulation on bilateral agreements and the parties’ rights and obligations will enter into force on July 1, 2018, whereas other provisions entered into force by publication in the Official Gazette on May 30, 2018.
What Does the Regulation Say?
The Regulation introduces the new concept of the independent consumer with low consumption rates, referring to independent consumers who consume less than 100,000 kWh of electricity on an annual basis. Accordingly, suppliers may offer a bilateral agreement with a definite or indefinite term to independent consumers with low consumption rates. The term of bilateral agreements may not exceed three years.
The Regulation imposes certain obligations on the suppliers regarding the execution of the agreements and fulfillment of the obligations thereunder. Prior to the execution of bilateral agreements, the suppliers must inform the consumers regarding the main obligations of the parties in a clear and comprehensible manner and in line with the form requirements set forth under the Regulation. Failure to inform the consumer is deemed a valid cause for the consumer to terminate the agreement.
Bilateral agreements must contain the mandatory information listed under the Regulation.
The Regulation also grants independent consumers the right of cancellation in bilateral agreements. Accordingly, consumers may cancel the bilateral agreements they executed with electricity suppliers within 14 days as of the date of execution or renewal of the agreement without stating any reason or paying any cancellation fee.
Conclusion
The Regulation introduces detailed rules and procedures for the execution of bilateral agreements between electricity suppliers and independent consumers with low consumption rates. The Regulation also presents strict information obligations for electricity suppliers and grants consumers extensive cancellation and termination rights. Therefore, electricity suppliers must carefully review the new provisions in relation to bilateral agreements and take the necessary steps to avoid any invalidity or enforceability concerns.
