Tiered Natural Gas Bills to Arrive in May

Ankara – In a significant shift in energy policy, Turkey has transitioned to a tiered natural gas pricing system, mirroring the structure already in place for electricity. This new system, which took effect on April 4, aims to encourage more efficient gas consumption by penalizing excessive usage.

Under the new regulations, consumers who exceed their designated consumption tiers will be required to pay the actual market cost for the natural gas they use beyond those limits. The first bills reflecting these tiered prices are anticipated to be issued to citizens in May. This move is expected to impact roughly 2.8 million of Turkey's 21.8 million natural gas subscribers, while the majority, approximately 19 million subscribers, will continue to benefit from subsidized rates.

The tiered system introduces two distinct price points: 'Tier 1' for normal consumption and 'Tier 2' for exceeding the allocated limits. The price per cubic meter for Tier 1 is set at 10.62 Turkish Lira, while Tier 2 consumers will face a higher rate of 18 Turkish Lira. Special subsidized rates of 5.31 Turkish Lira per cubic meter are reserved for the families of martyrs and veterans. These base prices are then subject to additional taxes, including VAT and system usage fees, which will determine the final per-cubic-meter cost reflected on consumer bills. Consequently, Tier 1 consumers will pay approximately 16.23 TL per cubic meter, while Tier 2 consumers will face a significantly higher cost of 26.13 TL per cubic meter.

Monthly tier averages have been established for various provinces, with figures varying based on regional climate and consumption patterns. For instance, in April, the tier average for Istanbul was set at 192.55 cubic meters, while in colder regions like Hakkari, it was as high as 292.32 cubic meters. A crucial aspect of the new system is that if a consumer exceeds their tier average, their entire consumption for that month will be billed at the higher Tier 2 rate, not just the excess amount. However, consumers can return to the subsidized Tier 1 rate in the following month by reducing their consumption below the established limit. Places of worship, the families of martyrs, and veterans are exempt from this tiered system, while industrial facilities and commercial businesses are excluded. Bakers, however, will benefit from the Tier 1 tariff.