Conference on Electricity Distribution and Mergers & Acquisitions in Electricity Generation and Distribution under Turkish Competition Law

Erdem & Erdem together with Electricity Distribution Services Association (ELDER) organized the Conference on “Electricity Distribution and Mergers & Acquisitions in Electricity Generation and Distribution under Turkish Competition Law” on 14th of March in Ankara Point Hotel.

Mr. Şadi Büyükkeçeci, Legal Advisor of ELDER, and Ms. Piraye Erdem, Founder and Managing Partner of Erdem & Erdem Law Office, were keynote speakers of the conference attended by distribution companies from 21 distribution regions in Turkey.  

In her speech, Piraye Erdem discussed that the electricity distribution and supply companies are operating in a challenging market conditions as they cater to an excessive number of consumers while trying to update to fast developing and ever-changing technology.  Moreover she underlined that the constant evolution of the distribution companies require them to adapt to the market conditions and constantly follow recent developments in the world in terms of new technologies and  socio-economic conditions that affect the customers and the market immensely.  She mentioned that the future of the electricity generation and distribution will be for companies that could speedily adapt to changing conditions while seeing and seizing the opportunities beneath.  

After the keynote speakers, Mr. Mert Karamustafaoğlu, the Competition and Compliance Expert in Erdem & Erdem and the former chief expert of the Turkish Competition Authority, addressed the recent developments in the distribution and supply markets. In his presentation, he discussed in detail the recent investigations of the Turkish Competition Authority and the possible future action plan of the Authority concerning the electricity distribution services.

In the second session, Ms. Gaye Spolitis, Partner in Corporate Affairs Department of Erdem & Erdem highlighted key regulations and principles governing acquisitions, share transfers and mergers in the electricity sector. She discussed the specific particularities of M&A transactions for partnership and management. She highlighted major terms of transactions concerning the licensed and unlicensed energy projects under sector-specific regulations.

In the third session Mr. Tuna Çolgar, Partner in Erdem & Erdem’s Corporate Affairs Department elaborated the process of share transfer transactions in the energy sector and the contractual provisions that should be taken into account. Particularly the share transfer agreements, the features of share transfer process, various contractual statements and guarantees stipulated between the parties, the limitations on share transfer, joint management, obligations in the interim period and important negative changes are addressed.

In the fourth and the last session, Mr. Özgür Kocabaşoğlu, Parner and Head of Corporate Affairs in Erdem & Erdem, made a presentation on the project financing methods for merger and acquisitions in the electricity sector. The problems in project financing and refinancing and legal solutions in this respect are briefly discussed.

The conference had an extensive Q&A session with questions raised by the representatives of the distribution companies, members of ELDER.  The closing speech was delivered by Prof. Dr. H. Ercüment Erdem, Founder and Senior Partner of Erdem & Erdem, in which arbitration and mediation methods used in the disputes regarding the current problems in energy sector are discussed.