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29/09/2021 https://www.esin.av.tr/wp-content/themes/esin/images/esin.jpg

COVID-19: EMRA Accepts COVID-19 Epidemic as a Force Majeure Event

Legal Alerts
Covid-19
Energy, Mining & Infrastructure

Recent Developments

On April 2, 2020, the Energy Market Regulatory Authority (”EMRA”) accepted COVID-19 epidemic as a force majeure event under Article 35 of Electricity Market License Regulation and Article 19 of Unlicensed Electricity Generation in the Electricity Market Regulation. EMRA’s decision was published in the Official Gazette no. 31089 on April 6, 2020 and has become effective the same day.

What’s New?

Licensed Power Generation

With respect to time-based obligations of pre-license or license holders arising from the  Electricity Market License Regulation, one time 3-month extension has been granted for the following items without any need for further action provided that expiration date for such obligations’ is March, 10, 2020 or thereafter:

  1. Preliminary license periods, and the duration of the pre-construction and construction periods within the scope of the relevant license, and the obligation postponement periods within the scope of the Provisional Article 15 of Electricity Market License Regulation;
  2. Periods regarding the obligations set out within the scope of amendment of preliminary licenses or generation licenses;
  3. Periods regarding the obligations within the scope of merger or demerger processes;
  4. Periods regarding the obligations within the scope of procurement of generation license as a continuation of the existing one;
  5. Periods regarding the delivery dates of necessary information and documents within the scope of preliminary license and license application; and
  6. Periods regarding the preliminary license amendment applications envisaged to be made within the scope of Article 18 Paragraph 2 of Electricity Market License Regulation.

Unlicensed Power Generation

The following time period set out under the Unlicensed Electricity Generation in the Electricity Market Regulation has been granted one time 3 –month extension without any need for further action provided that expiration date for such obligations is March, 10, 2020 or thereafter:

Deadline for the execution of connection agreement for the power generation facilities envisaged to be established within the scope of Unlicensed Electricity Generation in the Electricity Market Regulation.

Conclusion

The EMRA’s administrative measures aim to provide energy companies with flexibility in order to ensure the continuity of energy investments during the COVID-19 outbreak. The measures attempt to minimize the time-related problems that may arise out of operational delays caused by the COVID-19 outbreak. Relevant power generators should consider the 3-month time extensions in light of the EMRA’s decision.

Please refer to https://www.esin.av.tr/coronavirus-desk/ for our client alerts regarding the legal consequences of COVID-19 on other areas.

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