Turkey plans to reduce electricity subsidy limits for 2027

Turkish energy management is preparing to further reduce electricity subsidy limits, potentially increasing costs for millions of residential consumers. The strategy involves gradually lowering the annual consumption threshold required to qualify for state support, moving toward the ‘Last Resort Supply Tariff’ for higher consumers.

Following a reduction from 5,000 kWh in 2025 to 4,000 kWh in 2026, officials are considering lowering the 2027 limit to either 3,500 kWh or 3,000 kWh. The Energy Market Regulatory Authority (EPDK) is expected to officially announce the new consumption tier in October after reviewing regional data from distribution companies.

According to Osman Nuri Doğan, former Acting General Manager of TEDAŞ, the impact depends on the final limit. If the threshold drops to 3,500 kWh, households consuming more than 291 kWh monthly may lose subsidies. If it drops to 3,000 kWh, households exceeding an average monthly consumption of 250 kWh—or those with monthly bills over 660 TL—could be subject to market-based pricing rather than subsidized rates. Exceptions may be maintained for specific groups, such as relatives of martyrs and veterans.