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Electricity price hike could be in pipeline

12 October 2013

KIBTEK chairman Erkan Okandan gave a strongly worded statement making a number of points in a press interview, yesterday.

The main points were:

  • Debt at KIBTEK has grown 2.5 times. It was TL 140 million in 2009, rising to TL 356 million at the end of 2012.
  • On top of this debt are the unpaid electricity bills, mainly from local authorities and BRT.
  • KIBTEK is currently selling electricity at a loss. Each kilowatt of electricity costs 55 kurus and is sold for 47 kurus, a loss of 8 kurus per Kw.
  • Price increases are inevitable or “we will all sit in the dark”. Mr Okandan says that the last increase was 23 months ago.
  • The last UBP government decided to privatise KIBTEK and watched the company slowly sink.
  • Fuel oil prices have gone up 323% since 2009.

When asked if KIBTEK had a rescue plan, Mr Okandan said that any plan must recognise that KIBTEK could not continue selling electricity at below cost. He did not think that privatisation was the answer and felt that such a route might lead to even bigger price increases.

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