Improving electricity efficiency in Turkey by addressing illegal electricity consumption: A governance approach

Recent reform activities to liberate and privatize the Turkish utility energy sector through deregulation have transformed the scope of the historically government-owned corporations. However, during the free market process approach, power theft has become an issue that requires national attention. This paper examines the current use of two governance tools—privatization and regulation, and suggests two others to promote a framework of efficient electricity distribution (grants and public information). The capacity of the tools to provide a solution to power losses is discussed while considering the barrier of political acceptability in regions of the country where pockets of resistance exist.

► Energy sector reforms in Turkey have transformed scope of the government-owned corporations.
► Power theft has become an essential issue in this liberalization process.
► In addition to currently used two governance tools, two others are suggested to be used.
► The tools are promising to address the power theft issue as long as they are politically acceptable.