A parametric study on privatization revenues of the electricity distribution companies in Turkey

The privatization of electricity distribution companies in the state monopoly has increased significantly in recent years. Privatization is expected to improve the quality of services in the electric distribution sector and to provide additional income to the state. In this paper the privatization revenues of the 18 electricity distribution companies in Turkey are calculated through regression equations. The privatization revenues of the electricity distribution companies are identified by 5 models containing microeconomic and macroeconomic variables (parameters). The study indicates a correlation between the considered variables and the privatization revenues of the electricity distribution companies and useful parametric formulations are proposed. The proposed models and regression equations obtained can be employed for future predictions of privatization contributions after making the necessary adjustments by considering the real exchange rates, which is helpful in determining tender offer prices.

PDF

___

[1] Joskow PL. Electricity sector restructuring and competition: lessons learned. Cuadernos de Economia 2003; 40: 548558.
[2] Growitsch C, Jamasb T, Pollitt M. Quality of service, efficiency, and scale in network industries: an analysis of European electricity distribution. Applied Economics 2009; 41: 25552570.
[3] Mazer A. Electric Power Planning for Regulated and Deregulated Markets. Hoboken, NJ, USA: Wiley, 2007.
[4] Hunt S. Making Competition Work in Electricity. Hoboken, NJ, USA: Wiley, 2002.
[5] Rothwell G., Gomez T. Electricity Economics: Regulation and Deregulation. Hoboken, NJ, USA: IEEE Press, 2003.
[6] OECD/IEA. Competition in Electricity Markets. Paris, France: Publication Service, 2001.
[7] The Privatization Administration (in Turkish, O¨ ˙IB) (2010).
[8] OECD. OECD Reviews of Regulatory Reform, Regulatory Reform in Turkey: Regulatory Reform in Electricity, Gas, and Road Freight Transport. Paris, France: OECD Publications, 2011.
[9] Ozkavrak O. Electricity restructuring in Turkey. Energy Policy 2005; 33: 13391350. ¨
[10] Bagdadioglu N, Waddams Price C, Weyman-Jones T. Measuring potential gains from mergers among electricity distribution companies in Turkey using a non-parametric model. Energy Journal 2007; 28: 83110.
[11] Erdo˘gdu E. Regulatory reform in Turkish energy industry: an analysis. Energy Policy 2007; 35: 984993.
[12] Ulusoy A, O˘guz F. The privatization of electricity distribution in Turkey: a legal and economic analysis. Energy Policy 2007; 35: 50215034.
[13] IEA Statistics (2005). Electricity Information.
[14] Turkish Industrialists and Businessmen Association (TUSIAD). Liberalization of the Energy Sector: The Case of Turkey and the EU. TUSIAD Energy Strategy-4, 2009.
[15] Energy Market Regulatory Authority (EMRA), (2010) Electricity Market Report.
[16] Turkey Electricity Trading Corporation (TETAS¸), Sector Report for Year of 2011.
[17] Park CS. Contemporary Engineering Economics, 5th Edition. Upper Saddle River, NJ, USA: Prentice Hall, 2010.
[18] Turkey Electricity Distribution Company (TEDAS¸) Statistics for 2007, 2008, and 2009.
[19] The Chamber of Electrical Engineers (in Turkish, EMO), Electricity Privatization Report, 2012.