Giant energy companies from around the world want a slice of the soon to be privatised Turkish electricity distribution network.

One of the first moves to privatise the Turkish electricity distribution network, which is expected to yield nearly $10 billion, has been welcomed by giant energy companies from around the world who are expected to start bidding for the distribution area of Ayedas which includes Istanbul’s Asian side, Baskent and Sakarya.

Companies have to apply to the Turkish Privatization Board by December 15th this year. Priority has been given to the three regions as they boast the lowest rates of stolen or lost electricity and a high number of subscribers.

Private companies taking over the distribution business will need to take further steps to prevent losses and also have to renew infrastructure investments. The rate of electricity loss is high compared with the rest of Europe.

The legal steps to pave the way for the privatisation of the Turkish Electricity Distribution Corporation (TEDAS) were made in mid-May. Closely following the developments are some of Turkey’s leading companies, including Koc, Sabanci, Calik and Zorlu. But world energy giants like Germany’s EON, RWE and Siemens, Spain’s Iberdrola and Endesa, Italy’s Enel and the American AES company are hot on their heels and a yearly increase in demand estimated to be seven per cent in Turkey signals the potential for significant growth in the Turkish electricity supply sector.

The Energy Market Regulatory Authority issued a series of regulations in early September and explained the anticipated relationship between consumers and the private electric company. Accordingly any private electric company that fails to inform consumers about electric blackouts in time will have to pay compensation costs.