Legal entities engaged in generation activities are private sector generation companies, Electricity Generation Co. Inc. (the generation company established as a successor to TEAS) and subsidiaries, other public generation companies established with the restructuring of Electricity Generation Co. Inc. and autoproducers and autoproducer groups. Electricity Generation Co. Inc. and public sector generation companies, in accordance with their licenses, are entitled to sell electricity and/or capacity to real persons and legal entities.

Electricity Generation Co. Inc. takes over the generation facilities of DSI as per the provisions of this Law, and it operates the generation facilities that are transferred from TEAS and not transferred to private legal entities subject to civil law, either directly or through its affiliates. It disconnects these generation facilities from the system where deemed necessary.

Electricity Generation Co. Inc. retains the ownership of the facilities and enterprises, the operating rights of which have been or will be transferred to the private sector legal entities subject to civil law, as well as the complementary investments to be completed in such facilities and enterprises. Electricity Generation Co. Inc. shall fulfill the tasks stipulated under the Law.

The Private Sector Generation Companies are private sector legal entities subject to civil law that are engaged in the generation and sale of electricity at generation facility(ies) they own or have acquired through financial leasing or transfer of operating rights (TOOR). The total fixed electricity capacity of any legal person or private sector legal person though the generation companies under their control cannot exceed twenty percent of the published figure for the total installed capacity in Turkey in the preceding year.

An autoproducer and autoproducer group can sell twenty percent of the annual mean electricity generation amount, specified in the licenses in a calendar year. EMRA may increase said percentage, exclusively in the event of necessity in terms of security of supply. In the case that amount of the electricity sold in a calendar year exceeds the percentage set by the EMRA, obtaining a generation license is a must.