ERDEM-NEWSLETTER-2018-metin

261 LAW OF OBLIGATIONS changes in the exchange rates, there has been a substantial increase in the cost to purchase natural gas. Also, due to the increase in the brent oil prices and the exchange rates within the last 2 years, changes to the regulations was found necessary with respect to the pricing of natural gas wholesale. One of the new regulations stipulates that the price for natural gas of free consumer customers who use natural gas for the purpose of electricity generation shall be 270 US Dollar/K Sm³ as of 1 August 2018, and that it shall be billed in Turkish Lira at the current exchange rate. Due to the fixed natural gas price of 270 US Dollar/K Sm³, it is anticipated that BOTAS will determine a new price each month in accordance with the US Dollar exchange rate to be considered. As well, the sales price of natural gas has also increased. Whilst the June, 2018 tariff price applied to those free consumers who have signed a purchase and sale agreement of natural gas with BO- TAS for the use of electricity generation was 0,877600 TRY/Sm³, the tariff prices increased to 1,312200 TRY/Sm³ in August, 2018, and to 1,700000 TRY/Sm³ in September, 2018 2 . Taking these data into con- sideration, it is clear that the tariff prices have drastically increased. Hence, comparing the tariff prices of August and July announced by BOTAS, an increase of 49.5 % has been realized. Specifically, in com- paring the tariff prices of July and September announced by BOTAS, there was an approximate increase of 93.7 %. In short, the price paid by electricity generators for the natural gas they bought has almost doubled as of July. Bilateral Agreements Bilateral agreements are commercial agreements subject to pri- vate law provisions that have been made regarding the purchase and sale of electrical energy and/or capacity between natural and legal persons, and which are not subject to the Energy Market Regulatory Authority’s approval 3 . A substantial part of the trading energy in the Turkish electricity market is traded through bilateral agreements. 4 The possibility of adaptation due to the changed circumstances regard- 2 https://www.botas.gov.tr/index/tur/faaliyetler/dogalgaz/tarifeSerTukV10.asp (Access date: 24.09.2018). 3 Electricity Market Law No. 6446. 4 EMRA , p. 37.