Electricity prices for households are at a level comparable to prices in the industrial sector. This has led to a lack of available funds for investment in generation, transport and distribution. The pricing policy has also contributed to the rapid growth in energy demand. However, the programme design has changed several times, and legal disputes have delayed its implementation. Consumption of natural gas was only recently made available in Turkey, and demand has since grown quickly.
Turkey produces only a small amount of gas, and thus natural gas imports have increased rapidly.
The Government is in the process of diversifying its gas suppliers. Several transmission pipelines are being considered to bring natural gas from Iran and the Caspian area, as well as to increase imports from Russia. These imports are welcome, as they will further diversify Turkish energy supply and will contribute to the mitigation of urban pollution and CO2 emissions to the extent that natural gas replaces more carbon-intensive fuels. The Government is considering the possibility of liberalising natural gas imports and implementing third party access in transport and distribution. Eventually, the Government plans to set up an independent regulator to handle access to pipelines and pricing issues.