Audit of Companies Subject to the Energy Market/Supervision of Companies Subject to the Energy Market: pursuant to subparagraph E of the 2nd paragraph of the 9th article of the Law No. 4628 on the Organization and Duties of the Energy Market Regulatory Authority; an Audit Department is to be appointed to carry out; or in accordance with the relevant law and secondary legislation regarding the markets in which the company in question operates, therefore, the audits are to be carried out in cooperation with the authorized public institutions and organizations in this regard to provide solutions to the problems detected.
The Auditing Duty of Companies Subject to the Energy Market
It has the authority to examine and supervise the companies operating in accordance with the Electricity Market with Article 5 of the Law No. 4628 on the Organization and Duties of 15 Energy Market Regulatory Authority and Article of the Electricity Market Law of 6446; and the persons whose agency operates without a production license transmission, distribution, wholesale, retail sales, market operation, import and export activities and transactions.
All kinds of audits in the electricity market are carried out by the Institution.
Audit Program of Companies Subject to the Energy Market
With the Board Decision of the Energy Market Regulatory Board dated 09/06/2010 and numbered 2598/76;
Taking into account the busyness of the agenda and workload of the Board of Directors, the Institution has been authorized to implement the audit programs prepared for the determination and implementation of audits in the electricity, natural gas, petroleum and liquefied petroleum gases market, directly with the approval of the Presidency, without being on the agenda of the Board of Directors. After this board decision, the audit programs are determined with the approval of the Presidency.
Audit of Companies Subject to the Energy Market, Audits made by the institution in the electricity market carried out in accordance with the provisions of the Regulation on the Procedures and Principles to be Complied with in Inspections, Preliminary Research and Investigation to be made in the Electricity Market.
On behalf of the Board and/or the Board; Possible errors, omissions, irregularities and violations are examined by the authorized personnel of the Institution in line with the determination and implementation of the necessary sanctions stipulated in the law. Audits are carried out in order to ensure sufficient, quality, continuous, low-cost and competitive electricity is offered to consumers in a way that does not harm the environment, and to create a financially strong, stable and transparent electricity market.
Persons to be Assigned to Audit
Audit of real or legal persons operating in the electricity market is carried out by Experts and/or Assistant Experts working in the Department on behalf of the Board, or by Management Services Experts under the coordination of Experts. When necessary, audits are carried out with the approval of the President, by the Experts and/or Assistant Experts from other service units of the Board or by the Management Services Experts under the coordination of the Expert.
It is possible for the Board to audit the activities and practices of legal entities operating in the electricity market, as well as their transactions and accounts, through independent audit firms and/or technical audit institutions.
Obligations of Audited Legal Entities
Audited legal entities should;
- Submit all business; facilities and investments and legal books, records and documents to the Institution,
- Submit the originals and/or copies of all kinds of information, documents and books deemed necessary by the assigned personnel of the Institution in time,
- Give written and verbal information when requested and sign the official reports,
- Provide timely access to all information, documents and records deemed necessary by the personnel of the Institution in charge and provide a suitable place for the personnel to work,
- Make the accounts, transactions and financial statements and internal control systems suitable and ready for auditing.
Audited legal persons cannot abstain from providing information and documents by depending on confidentiality and secrecy provisions.
Duties and Responsibilities of the Institution Personnel Charged with Auditing
Personnel of the Institution assigned to carry out inspections is obliged;
- To request all kinds of information and documents deemed necessary, to examine legal books and records, to obtain their originals and/or samples and conduct on-site inspections,
- To request written or verbal information on the subject and to prepare the necessary reports,
- To request information and documents from other public or private institutions and organizations when required by the duty,
- To ask for help from civil authorities, security forces and other public institutions and organizations when required by his duty.
- To keep the books and documents entrusted to him within the period required by his work and return them by the end of the work,
- Not to disclose confidential information obtained through audit activities to anyone other than those authorized by law and not to use them directly or indirectly for his own benefit,
- Except for the signs required for the examination, not to make annotations, additions and corrections on books, records and documents;
- In places where he audits, he is obliged not to act in a manner that would undermine the sense of dignity and trust required by his duties and titles, and not interfere with the execution.
Obligations of the Personnel of the Institution Assigned to Audit
During the audit activity, Institution’s personnel assigned;
- To have an impartial point of view during the audit activity, in the evaluation of the results and in the preparation of the audit report,
- Not to allow any intervention that may affect its honesty and impartiality,
- To show the care and diligence required by the profession at every stage of the audit activity,
- To comply with the generally accepted principles and moral obligations as well as professional audit principles and moral obligations,
- In the event that matters that are so important that they may adversely affect market activities are detected during the audit, he is obliged to immediately inform the Presidency through the Head of the Department, without waiting for the conclusion of the audit activity.
Personnel assigned to carry out audits should introduce themselves to the audited persons with an identity document proving that they are authorized Instituion’s personnel before starting their duties and should make direct correspondence with the relevant persons, institutions and organizations through the Department.
The audit report prepared by the Instituion’s personnel assigned to carry out the audit is submitted to the Department. The Head of the Department presents the report to the Presidency by stating his own opinion. The Chairman puts the first audit report on the Board’s agenda.
If it is determined that the provisions of the relevant legislation are violated as a result of the inspections, the sanctions and penalties stipulated in Article 16 of the Electricity Market Law No. 6446 are applied depending on the nature of the law.
Inspections to be made in the Electricity Market in accordance with the Regulation on the Inspections to be Made in the Electricity Market and the Procedures and Principles to be Followed in the Preliminary Research and Investigations by the Instutiton are;
- Planned audits carried out within certain annual programs,
- Audits based on reports or complaints,
- Ministry Audit Reports and Audit Reports Made by Independent Audit Institutions in the Electricity Market,
- Audits made as a result of violations detected within the scope of monitoring activities.
Time to Submit the Audit Report
The report prepared as a result of the audit is submitted to the Energy Market Regulatory Instutiton until the fifteenth day of May in the following accounting period. Notifications are made within the scope of the Energy Market Notification Regulation published in the Official Gazette dated 27.05.2014 and numbered 29012.
Persons Authorized to Audit in the Energy Market and Requirements for the Verification of the Report;
In accordance with the energy market legislation, The independent audit and reports of the auditee, which are prepared as a result of this audit for the subject or any other legislation, regardless of any legislation due to its existence for an independent audit (the mentioned independent audit is conducted by independent audit institutions authorized by the Public Oversight Audit and Accounting Standards Authority) and its activities, practices, transactions, accounts and financial statements; It will be deemed valid by the Insitution, provided that an additional report is prepared in accordance with the relevant legislation and that compliance with the general and special provisions that form an integral part of the license of the enterprise is audited.
Principles and Regulations Applied in Independent Audit in the Energy Market;
Contracts to be signed with independent audit firms, contract forms and conditions, independent audit reports and principles and principles regarding independent auditing, etc. as well as the regulations of the Public Oversight, Accounting and Auditing Standards Authority are taken as a basis.