Written by: Basant El-Farmawy
The electrical energy sector in Turkey has witnessed radical transformations since the adoption of privatization policies in the mid-first decade of the new millennium, specifically since 2004, when the government began implementing strategies to reform the energy sector and restructure production and distribution operations. Despite the expectations that preceded these steps, the subsequent results sparked broad debates regarding economic efficiency and the financial burden on the general budget.
The decline of public production's role and the inflation of the purchase bill
The expansion of privatization operations for power generation plants has led to a gradual decline in the role played by the state-owned Electricity Generation Company (EÜAŞ). After the company provided more than 60% of production needs in 2002, its market share decreased significantly in favor of private companies. This shift was reflected in the state's increasing reliance on purchasing energy from the free market to meet the needs of the public sector, which imposed additional massive financial burdens on the public treasury.
Government energy spending data
According to data from the Ministry of Treasury and Finance, expenditures allocated for purchasing electricity from the free market for the public sector during the period from January to September 2026 reached high levels, with the total cost amounting to approximately 48 billion, 377 million, and 399 thousand Turkish Lira. This expenditure was distributed as follows: 11.1 million Lira during January and February, 10.1 million Lira during March and April, 5.6 million Lira during May and June, 7.3 million Lira during July and August, while the month of September alone recorded an expenditure of 14 million Lira.
Additional burdens for public lighting services
The financial burden was not limited to purchasing energy alone, but extended to include public lighting services for streets and roads. Reports have shown that the amounts paid to electricity distribution companies for lighting services have reached remarkably high levels. In the period between January and September 2026, approximately 16 billion, 211 million, and 966 thousand Lira were transferred from the general budget to electricity distribution companies to cover street lighting costs, which is added to the list of financial challenges facing the sector under the current organizational structure.
