Turkish energy minister hates hike but says necessary

Turkish Energy and Natural Resources Minister Taner Yildiz said he also did not like the new natural gas energy hike price increase of 18 percent on Monday. Yet Yildiz went on to explain that even with the natural gas discount his country had received in 2011 from Russia it was not enough to offset rising cost in the market as a whole.

Yildiz spoke to reporters at the 65th annual Geologic Convention held at the Turkish Mining Techniques and Discovery Association’s headquarters in Ankara.

Turkish consumers were shocked by two consecutive government decisions to increase prices for electricity and natural gas over the weekend. A written statement from the state-owned Turkish Pipeline Corporation (BOTAS) on Saturday said the price of natural gas for end-users (households) will increase by 18.72 percent.

Separately, the Energy Market Regulatory Agency (EPDK) announced on Saturday that electricity prices for households per kWh will increase by 9.26 percent and by 8.71 percent for industrial use. The decision was announced after an appeal by the Turkish Electricity Trading and Contracting Company (TETAS) to pass on the rising costs of electricity generation to retail prices.

While Yildiz said he was not happy about the developments his hand was forced by prices out of his control. Yildiz said what lays behind the price hikes in electricity and natural gas is the increase in crude oil prices and foreign exchange rates. <Cihan>

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