Government mulling options to reduce utility bills: Minister

ANKARA

Energy and Natural Resources Minister Fatih Dönmez said on Feb. 11 that the Turkish government is determined to draw up broad measures soon that will provide relief to families and businesses amid soaring utility bills.

“Some 50 Turkish Liras of a 100-lira electricity bill, and 75 liras of every 100-lira natural gas bills are absorbed by the government,” he said after a meeting with representatives of 21 private power-distribution companies in Ankara.
“Additionally, we want the energy sector [companies] to make contributions in this period,” he added.

The government provided nearly 5,000 liras on average to more than 20,000 households in energy subsidies last year, Dönmez said.

He added that the government is considering proposals from small businesses and non-governmental organizations to lower energy bills.

Bendevi Palandoken, head of the Turkey Tradesmen and Artisans Confederation, warned that many businesses will shut down unless the price hikes are withdrawn and special tariffs are set to help small businesses.
“I think there will be some retreat from the price hikes,” said economist Özlem Derici Şengül, founder of the Istanbul-based Spinn Consultancy.

Authorities then raised electricity tariffs on Jan. 1, spiking prices by 50 percent for many people and as much as 127 percent for businesses and high-consumption households.

Under the newly introduced tariffs, consumption up to 150 kilowatt-hours (kWh) a month would cost 1.37 Turkish Liras per kWh, and consumption above this limit would cost 2.06 liras, corresponding to 50 percent and 127 percent increases in electricity prices. Amid mounting public criticism, the lower limit was lifted to 210 kWh.