Amendments Made to the LPG Market Licensing Regulation

Introduction

Significant amendments have been made to the LPG Market License Regulation (“Regulation”), as published in the Official Gazette dated November 23, 2024. With these changes, the use of electronic communication methods in application, amendment, extension, and licensing processes has been expanded, transparency in application processes has been aimed for, and the responsibilities of market actors have been more clearly defined. Additionally, the customization of conditions for the absence of public debt according to license types and the obligation to notify the Energy Market Regulatory Authority (“EPDK”) about structural changes such as mergers and divisions has been introduced.

The essential changes in the Regulation are as follows:

1.      Non-compliances in License Amendment Applications

The reporting of non-compliances in license amendment applications can now be carried out electronically through the EPDK system. Thus, the aim is to increase the speed and efficiency of the application processes. Additionally, in the event of license application rejections, the reasons for rejection can be communicated both in writing and electronically. This provision offers a more transparent practice in terms of providing applicants with reasoned information.

2.      Absence of Public Debt Condition in License Applications

In the previous version of the Regulation, under Law No. 6183 on the Protection of Public Receivables, the absence of public debt for the applicant was a precondition for the acceptance of all license applications. However, with the amendment, this condition has been made mandatory only for LPG distributor, storage, and autogas dealership license applications. This change provides flexibility for some companies in the sector by removing the absence of public debt as a requirement for other types of licenses.

3.      Removal of Notification Requirement in Acquisitions

Although the obligation to notify EPDK regarding mergers and divisions continues, acquisitions have been removed from the scope of the notification requirement. However, the requirement to update records with EPDK within 1 (one) year from the registration in the trade registry is maintained. This provision aims to ensure that acquisitions are reflected in the Agency's records and to maintain market order.

4.      Prioritization of Digitalization

The amendments generally aim to increase digitalization in licensing processes and reduce bureaucracy. With the operations to be carried out through EPDK’s electronic communication systems, a fast and efficient process is offered to applicants. This situation not only reduces the administrative burdens of the applicants but also contributes to the modernization of the market regulation.

Enforcement and Implementation

These provisions of the Regulation will come into force as of March 1, 2025. Applications, amendment processes, and other procedures to be conducted after this date will be subject to the new regulations. The implementation of the Regulation is under the responsibility of EPDK.

Conclusion

The amendments made to the LPG Market License Regulation present a clearer regulatory framework for market actors. Steps such as digitalization and the customization of application processes, in particular, will positively contribute to the functioning of the market. However, it is crucial for market actors wishing to comply with the regulations to take necessary measures and revise their processes according to the new regulations before March 1, 2025.

For more information about these important changes in the energy market and to assess your compliance processes, please contact us. Our expert team will be pleased to offer the most suitable solutions to your needs in line with the new regulations.