Wholesale power prices in Turkey go up 12.7%

Kuwait: Turkey's energy market regulator has approved a 12.7 per cent increase in wholesale electricity prices, an energy ministry source said on Friday.

The move affects the price of electricity which Turkish state-owned power provider TETAS sells and comes into effect on July 1.

Now the state-owned electricity distributor TEDAS is expected to apply to the Energy Ministry to implement the price hike.

Prime Minister Tayyip Erdogan has the last say on the decision.

TEDAS has said earlier this month it wants a 25 per cent electricity price hike to cover the increase of oil prices.

Turkey's state-owned natural gas company Botas raised the price of natural gas to industry by 8.3 per cent and to households by 7.4 per cent from June 1.

"The fast rise in natural gas prices and the Electricity Production Corporation's (EUAS) 10 per cent price hike led to this decision for price hike," said the source.

Energy officials had previously expressed dissatisfaction with natural gas price hikes on June 1, saying that higher price increases are needed.

Rises in energy prices have been a major component in Turkey's double digit inflation, while further price hikes on natural gas and electricity are expected to squeeze residential and industrial consumers further.