Istanbul power company to raise prices 30% after election – report

An Istanbul firm supplying the city with electricity will raise electricity prices by more than 30 percent following mayoral elections on June 23, Evrensel newspaper reported.

The price hike by Boğaziçi Elektrik will be made at the start of July, Evrensel said, citing correspondence between the company and its vendors.

Financial pressure on firms to raise price of power and other commodities has intensified during a slump in the lira’s value against the dollar.  Turkey will hold a rerun of the March vote for mayor of Istanbul after the election board accepted an appeal by the governing Justice and Development Party (AKP).

It has become impossible to sell electricity at current prices because production costs have risen 34 percent in recent months as the lira weakened, Evrensel said, citing a statement by Boğaziçi Elektrik.

The AKP has sought to delay price hikes on items such as electricity, petrol and food this year as it campaigned for nationwide local elections and worked to bring the economy out of a recession. The AKP lost control of several major cities in the March 31 elections.