Elder’s new Chairman of the Board of Directors became Barış Erdeniz

The 10th Ordinary General Assembly of the Electricity Distribution Services Association Elder, the umbrella organization of distribution companies operating throughout Turkey, was held in Ankara on March 26, 2024, with a wide participation. The new board of directors gathered after the General Assembly and divided the tasks among themselves. In line with the decision taken, Kıvanç Zaimler, who has been the Chairman of Elder’s Board of Directors for three years, transferred his position to Barış Erdeniz, Chairman of the Executive Board of Aksa Electricity Group. Erdeniz will serve as Elder’s Chairman of the Board of Directors between 2024-2026. In the new period, Kıvanç Zaimler and Memet Atalay will assume the duties of Vice Chairman of the Board of Directors.

Many participants from the public and private sectors were also present at the general assembly, where the opening speeches were made by Deputy Minister of Energy and Natural Resources Nevzat Şatıroğlu, Energy Market Regulatory Authority (EPDK) Chairman Mustafa Yılmaz and Elder Chairman of the Board of Directors Kıvanç Zaimler.

“I AM OF THE OPINION THAT WE NEED STRUCTURAL REGULATIONS”

Speaking at the opening, Nevzat Şatıroğlu, Deputy Minister of the Ministry of Energy and Natural Resources, pointed out that the electricity distribution and assigned supply companies are in the fourth implementation period covering the years 2021-2025 and said, “When we look at all these implementation periods, a total investment of 336 billion TL has been made with updated values ​​and We see that the maintenance budget of 20 billion TL (last 3 years) was spent by companies. However, unfortunately, it seems that the increase in the welfare level of our citizens and the comfort they seek in accessing services have not been fully achieved. I believe that perhaps we need a structural regulation to solve these problems in the fifth implementation period to be published by EMRA. “I believe that EMRA and our Ministry will solve these issues by consulting with Elder,” he said.

“WE SHOULD DEVELOP METHODS THAT PRODUCE PERMANENT SOLUTIONS, NOT TEMPORARY”

In his speech at the opening, EMRA President Mustafa Yılmaz said, “I would like to express some of our expectations that we think will contribute to the future vision of the distribution sector” and added: “First of all, while carrying our distribution sector to the future, it is imperative to seek solutions to ‘today’s problems with tomorrow’s solutions’ and to go beyond traditionalized and easy methods in investment planning.” It should definitely be a priority. For this purpose, both in planning and field processes; Our basic expectation will continue to be that you develop methods that can foresee all kinds of problems that may upset the consumer and “produce permanent solutions, not temporary”. You all know the role of efficient and appropriate use of maintenance and repair budgets in preventing outages. “By optimizing all investment and operating processes together, the highest level of quality will be achieved with effective and efficient spending,” he said.

Pointing out that the distribution sector has responsibilities regarding production and investments as well as connecting more renewable energy sources to the system, Yılmaz continued his words as follows:

“Undoubtedly, in the coming days, issues such as electric vehicles and national smart meter systems will be much more on the agenda of the distribution sector. In the process of responding to the needs of the rapidly developing electric vehicle sector, all kinds of investments must be made urgently to strengthen distribution networks where necessary. As EMRA, we will follow up all services provided for uninterrupted energy on the roads, just as we do not allow any energy crisis in residences or industry. As of January 1, 2025, all distribution companies must quickly carry out the supply and installation procedures for smart meter conversion. With these feelings and thoughts, I hope that Elder’s 10th Ordinary General Assembly and the new management to be elected will be beneficial for our industry.”

“TOTAL INVESTMENTS WE MADE IN OUR COUNTRY EXCEEDED 709 BILLION TL”

Providing information about the investments made by the companies and the results they achieved after the privatization process completed in the electricity distribution sector in 2013, Kıvanç Zaimler said, “In this process, the number of subscribers we serve increased by more than 36 percent and reached the limit of 49 million. The length of our distribution lines increased by more than 30 percent, reaching over 1.4 million kilometers. The number of transformers increased by 33 percent, reaching over 520 thousand units; The transformer capacity almost doubled and exceeded the 200 thousand megavoltampere (MVA) threshold. During this period, loss rates decreased from double digits to single digits. The total size of the investments we continue uninterruptedly between 2011 and 2023 reached 289 billion TL with the current CPI value. When the current value we paid to the Treasury of the Republic of Turkey after the privatization tenders and 420 billion TL are included, the current total of our investments in our country exceeded 709 billion TL. Behind this picture are liberalization policies, flexible regulations and the passionate, determined and energetic efforts of our distribution companies. I would like to express my sincere gratitude to everyone who contributed. But most of all, I would like to thank more than 100 thousand veterans working in our industry,” he said.

“5TH IMPLEMENTATION PERIOD IS DIFFERENT FROM THE PREVIOUS ONES”

Drawing attention to the great transformation experienced by the energy sector, Kıvanç Zaimler said, “Impacts such as prioritization of energy production from renewable sources, economicalization of energy storage technologies, rapidly increasing electric vehicles, and environmental awareness of consumers have brought fundamental transformations in energy networks to the agenda. The transformation process, which has such destructive but also constructive effects, makes the “5th Implementation Period”, the preparations of which we will start shortly, different from the previous ones. The reason for the difference is not just the qualitative and quantitative paradigm change required by green and digital transformation. Considering that the distribution license periods will gradually expire starting from 2036, how the investments will be redeemed and the possibilities and conditions for extending the license periods constitute another major difference of the 5th Implementation Period. “Establishing the necessary policy on this issue without delay and determining the legal regime will enable all stakeholders to see their future,” he said.

“WE WANT TO CREATE VALUE FOR ALL STAKEHOLDERS”

Barış Erdeniz, who was elected as the Chairman of the Elder Board of Directors, expressed his gratitude to the board members who deemed him worthy of this position; “Each of Elder’s members will continue to deliver electricity, which plays a vital role in the economic and social development of our country, with an increasing performance. As the Elder Board of Directors, we will work under the guidance of the principle of “creating value for all stakeholders” in the next 3-year period, when the preparations for the new tariff implementation period will be completed. Within the scope of this basic principle, we will continue to increase the added value of the electricity distribution service by combining uninterrupted and quality energy supply with superior customer satisfaction. We will handle green and digital transformation simultaneously in the electricity distribution sector and create the infrastructure of the transformation with a twin transformation approach. We will shape ensuring the economic and financial sustainability of our industry as our priority agenda. “In doing this, we will strengthen our institutional capacity and implement a communication strategy with a positive agenda,” he said.

WHO IS BARIŞ ERDENİZ?

Barış Erdeniz, who served as Elder’s Deputy Chairman of the Board of Directors between 2021 and 2023, joined Kazancı Holding as a management consultant in 2014, after 13 years of energy sector experience. Barış Erdeniz, who has undertaken many successful projects that contribute to Kazancı Holding’s business processes in the fields of organizational development, operational efficiency and digital transformation, started to serve as a Board Member at Kazancı Holding as of August 2017. Erdeniz, who has been leading Kazancı Holding’s operational excellence and digitalization investments through common departments such as human resources, information technologies and supply chain since 2017, has also begun to assume the current position of Chairman of the Executive Board of Aksa Electricity Group as of January 2020. Erdeniz also serves as the Chairman of the Executive Board of Aksa Agriculture and Tourism, which operates within Kazancı Holding.