Conditions and Process for Electric Charging Station License Applications

Introduction

In today's globally changing world that is building a sustainable future, Turkey is among the countries aiming for economic and industrial green transformation. In this context, various regulations are made in our country and measures are taken for a livable future. In this context, the rapid increase in the use of electric vehicles in the world and in our country has brought the need for a legal regulation. With the Law No. 7346 published in the Official Gazette dated December 25, 2021, the Electricity Market Law No. 6446 ("EML") was amended and significant amendments were made to the Electricity Market Law regarding electricity charging services and it was regulated that the procedures and principles regarding this will be determined by future regulations. Subsequently, on 20/01/2022, the Energy Market Regulatory Authority ("EMRA") opened the Draft Charging Service Regulation to public opinion and assessment and kept it open for comments until 04/02/2022.

The "Regulation on Charging Service" ("The Regulation") was published in the Official Gazette dated 02/04/2022 and numbered 31797 and entered into force on the same day, and the procedures and principles regarding the subject were regulated in detail. In this information note, the conditions and process for license applications for electric charging stations will be briefly discussed.

License Applications

Regulation No. 31797 regulates in detail the procedures and principles regarding the establishment of charging units and stations where electric energy is provided to electric vehicles, the operation of charging stations connected to the charging network, and the provision of charging services. Article 6 of the Regulation includes the license application procedure. In order to obtain a license in accordance with the relevant article, an application will be made through EMRA Application System with the information and documents required to be submitted in accordance with the procedures and principles determined by the institution.

The legal entity that will make an application must submit the information of the authorized person who will make an electronic application to EMRA in writing together with the 'Petition Regarding the Identification of the Electronic Application Authorized Person'. If the electronic application authority is the person authorized to represent the legal entity, the 'Certificate of Authorization' must also be included in the application petition. In the event that a person other than the persons authorized to represent the legal entity is the electronic application authority, a power of attorney with all the powers specified in Article 5 of the Procedures and Principles Regarding the Charging Network Operator License Transactions and Related Applications must be submitted in the application petition. Following the submission of the notification, EMRA defines the electronic application authorization of the authorized person on behalf of the legal entity within five business days. A number of conditions are also required for the legal entity to apply for a license;

a) It has been established as a joint stock company or limited liability company in accordance with the provisions of the Turkish Commercial Code, and its minimum capital is not less than 4.500.000,00-TL, except for applications made by state economic enterprises,

b) In case the company is established as a joint stock company, all of its shares, except for those traded on the stock exchange in accordance with the capital markets legislation, must be registered shares and the company must not issue bearer shares except for those to be issued for trading on the stock exchange.

Application Process and Finalization

The license application is made through the system by the electronic application authority together with the license application petition,articles of association of the company including mandatory provisions, partnership structure documents, documents showing the current capital amount of the legal entity, trademark registration certificate, certificate sample and receipt showing that the license fee has been paid. The examination on whether the documents are duly submitted is completed by EMRA within ten business days following the application date. If it is determined that there are deficiencies in the applications, it is notified that the deficiencies must be eliminated within fifteen business days from the date of notification to the relevant person, and that the application will be deemed as not made if the said deficiencies are not eliminated. In this process, EMRA may request all kinds of information and documents needed to finalize the evaluation process from the applicant, and may also call the person or persons authorized to represent the applicant legal entity for direct interviews.

Before applying for a license, the relevant parties are required to prepare a charging network software and application that can remotely manage the charging stations in the charging network, monitor their compliance status, serve all types of electric vehicles compatible with the socket structure and receive payments from all electric vehicle users. Information and documents regarding this software may be requested by EMRA during the evaluation of license applications.

Applications that are found to be complete according to the license application principles will be evaluated as of the date of application or as of the date of submission of the information and documents regarding the elimination of deficiencies within the scope of the first paragraph to the Authority. The legal entity that fulfills the obligations specified in the relevant legislation will be granted a "Charging Network Operator License" by the Board decision and the trade name, registered trademark and license term of the license holder legal entity will be announced on the website of the Authority. The license shall enter into force on the date specified in the license and the rights and obligations of the licensee within the scope of the license shall become valid as of this date.

Legal entities that obtain a license pursuant to the Regulation are obliged to establish a system that will provide the Authority with timely, up-to-date, accurate and complete information on the geographical location, number, power and types of charging units, number and types of sockets, compliance status, payment method and charging service price of charging stations within one month at the latest after the license enters into force.

License holder legal entities are required to establish communication channels through which complaints of electric vehicle users can be submitted, recorded and monitored. In addition, legal entities that will apply for a license are required to establish a charging network in accordance with the "interoperability" provisions of the Law and Regulation within the scope of charging service activity.

License Fees and Term

Licence fees are composed of licence acquisition, licence amendment and licence copy issuance procedures and annual licence fees. The licence fees to be valid for the following year are determined by the Board until the end of December of each year, published in the Official Gazette and announced on the website of the Authority. For 2023, these fees are as follows;

• License Acquisition Fee   668.790,00-TL
• Lisans Amendment Fee   31.220,00-TL
• Lisans Copy Issuance Fee  6.690,00-TL

For changes in the licence fee, the licence fee valid on the date of application shall be paid for the transactions for which the licence fee must be paid in advance. For other transactions, the licence fee valid on the date the application is finalised shall be paid. All kinds of licence amendment and licence copy issuance fees and licence acquisition fees shall be paid in advance.

Pursuant to the relevant Regulation, the licence will be granted for a maximum of 49 years. However, the duration of the licence may be extended upon the request of the licence holder, starting from the expiry of the licence term and taking into consideration the maximum licence term envisaged; however, the issues taken into consideration in the evaluation of the extension request will be determined by EMRA.

Conclusion

The above-mentioned Regulation has emerged as a reflection of the agreements that enable each country to come together for a more livable and sustainable environment for our world on a global scale. The basis of all these developments is to ensure economic growth by adopting the idea of a green world and to encourage investors and businesses to act around this idea. Within the scope of the relevant Regulation, the inclusion of regulations such as not charging an annual licence fee for a certain period of time is intended to encourage investors and businesses to establish Electric Charging Stations.

Tagged with: SAYIN Law & Consulting, Beril Atikyılmaz, Ezgi Güzel, Enerji, Energy & Natural Resources