The energy sector is characterised by an economic structure in which generation, transmission, distribution, supply and retail activities are closely interconnected, require substantial capital investment and are subject to extensive regulation. In electricity markets, the simultaneous nature of production and consumption, dependence on network infrastructure, long-term investment requirements and the interdependence of different levels of the market can make competition law analysis more complex than in many other sectors. Decisions of the Turkish Competition Board likewise emphasise the distinctive structure of the electricity sector, which comprises different levels of activity including generation, transmission, distribution and retail supply.
Long-term supply agreements, access to capacity and infrastructure, exclusivity provisions, joint purchasing or selling arrangements, distribution relationships, information exchanges between competitors and joint ventures relating to energy investments may require competition law assessment. As renewable energy investment and partnerships between energy companies continue to increase, merger control has also become an important area for the sector. Recent decisions of the Turkish Competition Board regularly examine changes in control structures and joint ventures involving energy companies.
KFD Consulting assesses the commercial and strategic decisions of energy companies not only by reference to contractual provisions, but also by considering the economic effects of the relevant transaction on the market. New business models, partnerships, investment transactions, vertical commercial relationships and flows of competitively sensitive information are analysed, where possible, before decisions are implemented. Competition law assessment therefore becomes an integral part of the decision-making process rather than a retrospective review of a completed transaction.