Regulation On Procurement Of Real Estate Has Been Issued By The Energy Market Regulatory Authority – Government, Public Sector

The Regulation on Procurement of Real Estate
(“Regulation“), prepared by the Energy
Market Regulatory Authority
(“Authority“) has been published in
Official Gazette numbered 31647 on 2 November 2021 and entered into
force on the same day. With this new Regulation, the principles
regarding the execution of real estate procurement transactions to
pre-license/license holders in electricity, natural gas and
petroleum markets by the Authority and the duties, powers and
responsibilities of pre-license/license legal entities were
determined.

Transactions Regarding the Real Estate Facility

Privately owned real estates required for facilities operating
under a pre-license/license may be expropriated by the Energy
Market Regulatory Board (“Board“), if
these real estates are found required for the facility operations
after the evaluation of the Authority.

Private law legal entities will be able to request the transfer
of ownership or easement right from the facilities subject to
pre-license/license based-based activities, if they need the
ownership, height or depth of the real estate registered in the
name of the public legal entity. If deemed appropriate, the
relevant transactions will be carried out by the Board.

The requests for the establishment of easement right, granting
of usage permission or leasing on the real estates that are
privately owned by the Treasury or under the jurisdiction and
disposal of the State will be evaluated by the Authority and, if
deemed appropriate, the relevant procedures will be completed by
the Board.

Procedure of the Warrant

Private legal entities holding a pre-license/license will submit
to the Authority a letter of definite and indefinite guarantee in
an amount to be determined by the Authority. No security will be
required for transactions required by natural gas distribution
facilities.

Appointment of an Attorney by the Authority

A proxy may be appointed by the President of the Authority to
initiate and execute lawsuits related to real estates within the
scope of real estate procurement of facilities subject to
pre-license/license-based activities, to carry out other lawsuits
that may be brought against the Authority regarding facilities, to
participate in lawsuits to be filed in administrative jurisdiction
if necessary, and to fulfill the duties assigned by the Authority
regarding the lawsuits.

The information and documents to be determined by the Board for
the appointment of a proxy are submitted to the Authority by the
private legal entity holding a pre-license/license. Fees and other
expenses to be received by the attorney are paid by the private
legal entity holding the pre-license/license. The fee to be
received by the attorney is determined by the fee agreement to be
made between the lawyer and the private legal entity holding a
pre-license-license.

Other Provisions

Other issues regulated by the Regulation are as follows:

• The Authority will not take action regarding unlicensed
  electricity generation activity, and the Board will not take any
  decision. The same is applicable for the electricity generation
  facilities within the organized industrial zones.




• Procurement of real estate in favor of public legal entities
  will be carried out by these legal entities, and registration will
  be made in their own names. In addition, for the places under the
  private ownership of the Treasury and/or under the jurisdiction and
  disposal of the State, free of charge easement rights will be
  established, leases will be made, or usage permits will be
  given.




• Permission will be required for the use of agricultural
  properties other than their purpose.

Details of the Regulation can be found at this 
link. (Only available in Turkish)

Information first published in the MA | Gazette, a fortnightly legal update
newsletter produced by Moroglu Arseven.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.