The new Electricity Market Law overhauls the electricity sector, setting out the procedures for the privatization of the production and distribution entities, and the establishment of the Electricity Market Regulatory Authority and the Electricity Market Board.
The new Natural Gas Market Law restricts any company from selling more than 20% of Turkey's annual gas consumption, although this restriction does not apply to production companies producing gas in Turkey.
The draft Petroleum Law may result in fundamental changes to the existing legal framework. The proposed model, based on a licensing system, is similar to that of the oil industry. However, certain issues are yet to be addressed regarding pricing, distribution and transportation.
Project finance programmes in Turkey have been unsuccessful due to the absence of a 'neutral' jurisdiction in which to resolve disputes arising from these contracts. The Constitution has now been amended to resolve this issue.