Another human-made disaster in Turkey:  Energy cuts to industry

The Turkish Electricity Transmission Corporation (TEİAŞ) has warned the organized industrial zones across Turkey that they should limit their electricity consumption for at least three days. The warning came shortly after Iran cut natural gas flow to Turkey due to a technical failure.


The related technical failure in the transmission line has restricted power generation from natural gas to electricity in cycle power plants. As a solution, TEİAŞ has decided to restrict the electricity offered to all organized industrial zones across Turkey for 3 days as of today (January 24).


This decision means that industrial production will come to a halt in the country for at least 3 days. It is alleged that the same restriction will also be the case for the other industrial facilities as well.


As reported by ‘Omer Faruk Çiftçi and Fikri Cinokur from Dünya Newspaper, TEİAŞ informed the organized industrial zones by phone without making a written statement. However, the organized industrial zones informed the industrialists in their region by written correspondence.


While the first announcement by phone indicated that the related restriction would be in effect all day on Monday, Wednesday and Thursday, Minister of Energy and Natural Resources Fatih Dönmez, amid reactions, has changed the days to Monday, Tuesday and Wednesday.


Electricity for lighting and heating

All organized industrial zones have been allowed to use electricity for lighting and heating purposes. The energy of the regions with an electricity consumption over the specified level on the indicated days will be cut by TEİAŞ and they will face sanctions over this overuse.


Commenting on the issue, Antalya Organized Industrial Zone (OSB) Executive Board Chair Ali Bahar has indicated that the problems with energy have been aggravated in Turkey: “As the supply issue has interrupted the generation of electricity from natural gas at the related facilities, we are now faced with a huge problem with the supply of electricity.”


Ali Bahar also raised concerns about the problems to be faced by the industrial facilities that have to resume their production 24/7 as their stocks will go to waste in case of the slightest interruption.


Bahar has underlined that they have not been informed as to how the losses to be incurred by the industrialists with cold storage rooms and engaging in slaughtering and dairy factories will be compensated.


Listing a series of sectors in this context, Bahar has noted that “a huge problem with supply might occur across the country as a result of the interruption to be faced by these sectors”, adding that the psychology of society is not ready to accept such a huge problem. (AEK/SD)


Turkish farming already served notice that due to three-digit hikes in fertilizer and pesticide prices, planting is switching to crops with less need, which could exacerbate fruit and vegetable harvest.  Turkey’s second largest auto producer OYAK-Renault is in the midst of  a 15-day production stoppage because of chip shortage. An auto industry expert predicted that soon all majors in Turkey will follow suit. Finally, because the Health Ministry’s penchant for underpaying drug manufacturers, imports of active ingredients to Turkey for several vital medicines have been stopped.


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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and and has contributed to the financial daily Referans and the liberal daily Radikal.