Turkey raises electricity tariffs

Turkey added to inflation pressure on Saturday by raising household electricity and natural gas tariffs substantially, citing the surge in global energy prices, Bloomberg reported.

The cost of electricity will soar as much as 130 per cent for some households, the Haberturk newspaper estimated, as the country switches to a graduated tariff system.

The moves could further drive Turkish inflation, which is expected to accelerate to 27.4 per cent in December, according to the median estimate in a Bloomberg survey. The country’s statistics institute will announce the actual figure on Monday.

Under the new electricity charges, households will pay 1.37 liras ($0.09) per kilowatt-hour for as much as 150 kilowatt-hours per month, and 2.06 liras above that limit, the nation’s energy markets regulator said in a statement late Friday.

Botas, Turkey’s state gas company, separately raised natural gas prices by 25 per cent for households, 15 per cent for power plants and 50 per cent for factories from January 1, according to a statement on its website late Friday.

The weakening lira has contributed to spiraling inflation. Annual retail prices in Turkey’s business capital, Istanbul, rose more than 34 per cent in December compared with 24 per cent in November, according to data published by the city’s chamber of commerce on Saturday.

Istanbul retail prices climbed 9.65 per cent in December from 4.71 per cent the previous month as the cost of housing appliances and food soared.