Energy Law
Regarding the Decision No. 13003 of the Energy Market Regulatory Board Dated 11/14/2024
The Decision dated November 14, 2024, numbered 13003, of the Energy Market Regulatory Authority (“EPDK”), published in the Official Gazette dated November 16, 2024, numbered 32724, contains significant amendments to the dealer inspection system for distributor license holders operating in the oil market. This regulation has been implemented with the aim of enhancing inspection processes within the industry, increasing transparency, and elevating reliability standards. The Decision will come into effect on January 1, 2025, and encompasses new regulations that must be adhered to by relevant industry representatives.
Introduction
The decision dated 14 November 2024, numbered 13003, of the Energy Market Regulatory Authority (“EPDK”), published in the Official Gazette dated 16 November 2024, numbered 32724 (“Decision”), contains significant changes regarding the dealership supervision system for the holders of distributor licenses operating in the petroleum market. This regulation aims to improve supervisory processes in the sector, enhance transparency, and elevate reliability standards. The Decision will come into effect on 1 January 2025 and includes new regulations that must be adhered to by relevant sector representatives.
Below, the key details, scope, and impacts of the Decision on the sector are discussed in detail:
Details of the Decision
The Decision regulates amendments to the “Decision Regarding the Procedures and Principles Concerning the Dealership Supervision System of Distributor License Holders in the Petroleum Market” dated 27 June 2007, numbered 1240. Within this scope:
(i) The Automation System Guide (“Guide”) has been updated with the Decision. In line with the new regulations, the Guide has been revised. The purpose of the updated Guide is to establish a more effective control mechanism in dealership supervision processes. It particularly aims at the effective use of automation technologies, enhancement of data security, and making dealership supervision processes traceable.
(ii) It has been made mandatory for distributor license holders to restructure their dealership supervision systems in accordance with the standards specified in the Guide. Within this scope, it is necessary for the license holders to review their existing systems and align their technical infrastructure with the Guide.
(iii) The Decision includes the following arrangements to increase and standardize the accuracy of data used in dealership supervision processes:
o Cross checks: Cross-check methods will be applied to ensure data compliance and prevent incorrect reporting.
o Encoding system for erroneous data: Special codes for data that are incomplete or incorrect due to technical reasons have been determined.
o Classification of fuel types: All fuel types will be categorized in accordance with standards.
o Calculation of daily uncertainty rates: Standards for calculating uncertainty rates have been determined to minimize operational differences between dealerships.
Objectives of the Changes
With this Decision;
(i) It is aimed to ensure that dealership supervision processes in the petroleum market attain a more transparent structure and become traceable,
(ii) Reduce manual error rates by encouraging more effective use of automation systems, and
(iii) Facilitate a more reliable and orderly operation of the supply chain.
Enforcement and Application
The Decision will come into effect on 1 January 2025, and distributor license holders are required to restructure their systems in accordance with the updated Guide by this date. License holders who do not comply with these changes may face sanctions by EPDK. Therefore, it is of great importance that the relevant companies meticulously manage their preparation processes.
Conclusion
These changes will significantly impact the operational processes of distributor license holders operating in the petroleum market. The emphasis on automation systems requires companies to enhance their digital infrastructure and address data management more systematically. Furthermore, ensuring data accuracy and regularization of dealership audits will contribute to increased reliability in the sector.
EPDK’s decision numbered 13003 includes important changes concerning the Guide for distributor license holders operating in the petroleum market. Sector representatives must complete the necessary compliance work before the enforcement date of the Decision, which is 1 January 2025.
It is crucial to seek professional assistance to comply with the Decision and align your processes with the new regulations. Our law office provides guidance to sector representatives throughout the compliance processes concerning the relevant regulations, offering solutions to ensure technical and legal compliance. For detailed information and consultation services, please contact us.