New Era in Electricity Bills – Details of the 1,050 TL Charge
Starting from February 1, 2025, a new system will begin for millions of electricity subscribers. From this date, citizens who consume over 5,000 kWh annually will purchase electricity at the actual cost price. So how will this system work? What does the 1,050 TL detail mean? Is a price increase expected for electricity and natural gas in the new year?
“SUBSIDY REMOVED FOR CONSUMERS ABOVE 5,000 KWh ANNUALLY”
Altuğ Karataş, a member of the board of directors of the Independent Industrialists’ and Businessmen’s Association (MÜSİAD), explained the details to milliyet.com.tr: “With the new process starting on February 1, the 50% or higher electricity subsidy will be removed for households consuming over 5,000 kWh annually. This could be for several reasons. The first is to curb luxury consumption. Secondly, especially the charging of electric vehicles at home has increased the subsidized electricity consumption. I believe this move aims to reduce luxury consumption and remove subsidies for electric vehicle charging.”
5,000 kWh annually is equivalent to consuming more than 417 kWh per month.
WHAT ARE THE NEW PRICES UNDER THE UNSUBSIDIZED ELECTRICITY TARIFF?
For consumers exceeding this threshold, they will now be able to purchase electricity from energy companies at market prices, which will likely exceed 4 TL per kilowatt-hour, compared to the previous price of around 2.50 TL per kWh.
“ONLY 3% OF HOUSEHOLDS EXCEED 417 KWh”
When looking at monthly consumption, 95-96% of households consume less than 417 kWh. Only about 3% of households exceed this level.
THE 1,050 TL DETAIL
The 1,050 TL detail refers to the average cost of electricity consumption, considering both the first tier of 240 kWh at 2.07 TL and the second tier over 240 kWh at 3.11 TL. Households with bills over 1,050 TL are likely exceeding 417 kWh per month, meaning they will also exceed 5,000 kWh annually. In this case, they will start purchasing electricity at market prices above 4 TL per kWh unless they negotiate discounts with energy companies.
“SUBSIDY WILL CONTINUE FOR HOUSEHOLDS UNDER 5,000 KWh”
For households that consume below 5,000 kWh annually (and under 417 kWh per month), the subsidy will continue, and there will be no price increase. The Ministry of Energy also confirmed that subsidies will remain in place for households of martyrs, veterans, and the disabled.
“IT WILL ENCOURAGE ENERGY EFFICIENCY”
This decision could lead to an increase in energy efficiency, as households will be more incentivized to reduce their electricity consumption. It’s possible to reduce energy use by 10-20% through more efficient practices.
WHAT IS THE AVERAGE ELECTRICITY CONSUMPTION FOR A FAMILY?
An average family of four living in a 100-square-meter home would typically consume between 200 and 300 kWh per month. Unless living in a large villa or making luxury consumption choices, most households will continue using subsidized electricity.
WILL THERE BE A PRICE INCREASE FOR ELECTRICITY AND NATURAL GAS?
Currently, there are no signs indicating an expected price increase for electricity or natural gas bills. The Ministry of Energy has also not signaled any upcoming hikes.
Source: Milliyet.com.tr (MSN))
