Turkey's Shift in Energy Subsidies: A Move Towards Efficiency

Turkey is set to end government subsidies for high-volume residential electricity users starting February next year. This change targets citizens who consume more than 417 kilowatt-hours monthly, comprising about 3% of users. The move seeks to allocate subsidies more effectively and reflect the real cost of electricity for high consumers.

In a strategic move to optimize energy subsidies, Turkey plans to eliminate government aid for high-volume residential electricity users by February next year, according to Energy Minister Alparslan Bayraktar.

During a press conference in Ankara, Bayraktar stated that this regulatory update focuses on redirecting government funds towards citizens most in need of assistance. With approximately 40 million residential electricity users in Turkey, only around 3% fall into the high-consumption category that exceeds 417 kilowatt-hours monthly.

For years, Turkey has provided subsidized electricity, allowing households access to cheaper energy than neighboring countries. These changes will require high-users, often those with large homes or electric vehicles, to pay prices closer to the true cost of electricity, Bayraktar explained.

(With inputs from agencies.)