Turkey has lowered the VAT on electricity used in residences and agricultural irrigation from 18% to 8%. In addition, the country has readjusted electricity tariffs for low-consumption households by increasing the monthly limit from 210 kWh to 240kWh (+14%). The limit had already been revised upward from 150 kWh to 210 kWh in February 2022. The government will also grant state subsidies to 4 million households and exempt civil society organisations from the higher business tariffs, while readjusting tariffs for some small businesses.
Turkey is expected to spend TRY100bn (€6.5bn) on energy bills for its citizens in 2022, providing 50% support for natural gas and 25% support for electricity. In 2021, Turkey spent TRY80bn (€5.2bn) in support for natural gas, TRY20bn (€1.3bn) for electricity and TRY65bn (€4.2bn) for fuel in 2021, out of a total of TRY165bn (€10.8bn), to cushion the impact of global price increase on consumers.
In January 2022, the Turkish Energy Market Regulatory Authority (EMRA) increased electricity prices for 2022 by 50% for lower-demand households and by more 100% for high-demand commercial users. In addition, the state-owned gas group BOTAŞ raised natural gas prices by 25% for residential use and 50% for industrial use. The price increase of gas for power generation in the industry will be limited to 15%.