Privatized Turkish power plant's debt costs state millions, critics demand accountability

The Soma B Thermal Power Plant, privatized in 2015 by Turkey's Privatization Administration, is now a significant financial burden on the state. Konya Şeker Sanayi ve Tic. AŞ., which acquired the plant for $685.5 million, has accumulated a debt exceeding 20 billion Turkish lira to the Turkish Coal Authority (TKI) for coal supply.

Energy Minister Alparslan Bayraktar confirmed in response to a parliamentary inquiry that unit 6 of the plant remains inoperable due to commercial reasons and supply chain disruptions. TKI has initiated legal proceedings to recover its debt, seeking the sale of 1,343 properties belonging to the company, including the power plant itself. If the plant is sold through auction, TKI's debt will be settled from the proceeds; any remaining debt will be pursued through ongoing legal processes.

İYİ Party Manisa Deputy Şenol Sunat highlighted the plant's operational and financial struggles since privatization. He pointed out that Konya Şeker's management received a record-high purchase guarantee from the government in March to ensure the plant's survival and protect workers. Despite this, the operator reportedly committed to producing 295 megawatts daily but has averaged only 140 megawatts over the past 45 days, failing to meet its obligations.

This underperformance has allegedly resulted in a 50 million Turkish lira penalty from EÜAŞ and a revenue loss of approximately 600 million Turkish lira due to ungenerated energy, totaling around 650 million Turkish lira in public losses. Sunat questioned whether the plant's inefficiency was deliberate, particularly concerning the non-operation of unit 6 despite technical capabilities. He expressed concern that the company's massive debt and the potential sale of the plant for a low price of 7 billion Turkish lira threaten the local economy and the livelihoods of thousands of workers, urging that the public should not bear the cost of private sector mismanagement.

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The invoice should not be passed on to the public!