CHP spokesperson criticizes privatization of Turkey’s electricity transmission company

ANKARA

Main opposition Republican People’s Party (CHP) spokesperson Faik Öztrak reacted to the government’s decision for the privatization of the Turkish Electricity Transmission Corporation (TEİAŞ).

“They didn’t leave anything for sale,” Öztrak said, speaking at a press conference on July 5.

“Now they are going to sell TEİAŞ, which is considered a natural monopoly all over the world and carries out electricity transmission business,” he said.

The problem of competition and loss of welfare caused by taking a monopoly business from the state and giving it to individuals should be considered not once, but several times, he said, warning against further increase in electricity prices if the company was privatized.

The institutions such as the Competition Authority and the Energy Market Regulatory Authority (EPDK), which should regulate such privatizations, have already become “instruments of politics,” Öztrak said.

“Energy generation and distribution have been privatized. The results are out there. No investment. Especially the distribution companies have written serious losses from the exchange rate difference, and they are trying to reflect these losses to the consumers,” he said.

The last 15 percent hike in electricity is a result of this, the CHP official added.

The government has sold $62 billion in public assets in 19 years, he said, adding, “They gave guarantees to foreigners in euros and dollars for building bridges, highways that are not in use and airports that lie non-operational.”

Öztrak criticized the recent successive hikes in prices and said, “There were rampant hikes in July -- 15 percent hike in electricity, 12 percent to 20 percent hike in natural gas and 10 percent hike in university fee. LPG also increased by 39 cents.”