Thousands of people took to the streets of cities across Turkey in recent days to protest against electricity prices that shot up by as much as 125 per cent at the start of the year.
From the Mediterranean resorts of Fethiye and Marmaris to Agri on the mountainous eastern border, people rebelled against crippling bills that were raised in January.
Under the nationwide changes, electricity companies boosted prices by 50 per cent for low-level users, rising to 125 per cent for large-scale business consumers.
In the southern city of Mardin, police used tear gas and arrested several protesters on Sunday after the crowd called for the resignation of President Recep Tayyip Erdogan and chanted against the region’s electricity supplier.
“These electricity price increases are the latest blow for us after inflation that has left us unable to feed ourselves properly,” said Rifat Gencay, a jobless 39-year-old from Istanbul’s Atasehir neighbourhood.
“Some people are being forced to choose between buying food or paying their gas and electricity bills, they don’t have enough money for both.”
Housewife Esra Yuksel, 45, said her family had lowered the heating and wore extra clothing at home to keep bills down. “I still don’t know if we will be able to pay the bills next month,” she said.
Turkey’s economic crisis led to the official rate of inflation hitting nearly 49 per cent in January, up from 36 per cent the previous month.
Independent economists, however, put the annual rate at more than 115 per cent, a figure many shoppers facing daily price rises believe to be more accurate.
Many increases are caused by the fall of the Turkish lira, which lost 44 per cent of its value against the dollar last year in Turkey’s import-reliant economy. However, the government’s refusal to raise interest rates – the usual method of tackling inflation – has also fuelled the dilemma.
These electricity price increases are the latest blow for us after inflation that has left us unable to feed ourselves properly
Rifat Gencay,
resident of Istanbul
Crowds that gathered at the weekend called for the energy price increases – natural gas also went up 25 per cent – to be reversed and for the renationalisation of Turkey’s jigsaw of power companies.
“We don’t want to pay the price for the economic and political instability in our country,” protesters in the western city of Mugla said in a statement.
Meanwhile, the main opposition Republican People’s Party (CHP) applied to the courts for the increases to be suspended.
Cemil Kocatepe, chairman of the Istanbul Chamber of Electrical Engineers, described the increase as one that “shocks us all” and said electricity customers were “being robbed”.
He blamed privatisation for creating a system that “produces and will continue to produce [price] increases”.
“The most important reason for today’s hikes is the energy, production and sales system established by the AKP,” Mr Kocatepe said, referring to Mr Erdogan’s Justice and Development Party. “In the coming months, we are afraid that this system will bring a raise again.”
Businesses that are shouldering the higher price increase are also calling for changes and say they could be forced to close.
Shopkeepers in Istanbul have taken to posting their monthly electricity bills in their windows as a display of their desperate situation.
“A special tariff should be applied to tradesmen,” said Bendevi Palandoken, chairman of the Confederation of Turkish Tradesmen and Craftsmen.
“Unfortunately, increasing the level to 210 kilowatts in the gradual tariff did not benefit our tradesmen, since our tradesmen consume at least 800 kilowatts of electricity.”
He was referring to Mr Erdogan’s announcement last week that the upper limit of the 50 per cent increase would be raised from 150 kilowatts to 210 kilowatts of monthly use.
Mr Erdogan said the new tariffs were introduced to “ensure sustainability in energy markets”. Meanwhile, his spokesman Ibrahim Kalin on Sunday promised changes to ease customers' burdens.
“A new regulation on electricity bills will come very soon. Improvements will continue,” he told broadcaster AHaber. “We will not crush our citizens with inflation.”
The tourism sector, which accounts for 13 per cent of the Turkish economy and is a valuable source of foreign currency, also said that rising power bills could damage efforts for economic recovery.
“While electricity bills in Germany are between 2 per cent and 5 per cent of restaurant turnover, it’s reached 10 per cent to 15 per cent in our country,” said Zeki Ozen, chairman of the Antalya Gastronomy Investors and Operators Association.
Many restaurants and cafes now face monthly electricity bills higher than their rent, he said. Meanwhile, cash-strapped customers are cutting down on their nights out.
Hoteliers, who run energy-guzzling air conditioners during the peak summer months, say they are being forced to raise their room prices by up to 50 per cent.
“Hotel operators can’t even imagine how much they will pay when the air conditioners are working when temperatures rise,” said Serdar Karcilioglu, chairman of the Bodrum Professional Hotel Managers’ Association.
While the weak lira seems likely to maintain Turkey’s reputation as an inexpensive summer destination for European visitors, the locals who provide hotels with custom during the off-season are likely to stay away.
“With the new prices, I think that the purchasing power of domestic tourists will decrease by 75 per cent to 80 per cent. We have to save this year with foreign tourists,” Mr Karcilioglu said.
THREE POSSIBLE REPLACEMENTS
Khalfan Mubarak
The Al Jazira playmaker has for some time been tipped for stardom within UAE football, with Quique Sanchez Flores, his former manager at Al Ahli, once labelling him a “genius”. He was only 17. Now 23, Mubarak has developed into a crafty supplier of chances, evidenced by his seven assists in six league matches this season. Still to display his class at international level, though.
Rayan Yaslam
The Al Ain attacking midfielder has become a regular starter for his club in the past 15 months. Yaslam, 23, is a tidy and intelligent player, technically proficient with an eye for opening up defences. Developed while alongside Abdulrahman in the Al Ain first-team and has progressed well since manager Zoran Mamic’s arrival. However, made his UAE debut only last December.
Ismail Matar
The Al Wahda forward is revered by teammates and a key contributor to the squad. At 35, his best days are behind him, but Matar is incredibly experienced and an example to his colleagues. His ability to cope with tournament football is a concern, though, despite Matar beginning the season well. Not a like-for-like replacement, although the system could be adjusted to suit.
AL%20BOOM
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COMPANY%20PROFILE
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%20Ramez%20Gab%20Min%20El%20Akher
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Company Profile
Founders: Tamara Hachem and Yazid Erman
Based: Dubai
Launched: September 2019
Sector: health technology
Stage: seed
Investors: Oman Technology Fund, angel investor and grants from Sharjah's Sheraa and Ma'an Abu Dhabi
Tributes from the UAE's personal finance community
• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style
“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.
Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term.
From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”
• Sam Instone, director of financial advisory firm AES International
"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed. Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."
• Demos Kyprianou, a board member of SimplyFI.org
"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."
• Steve Cronin, founder of DeadSimpleSaving.com
"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.
His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.
Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."
• Zach Holz, who blogs about financial independence at The Happiest Teacher
"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen. He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”
• Tuan Phan, a board member of SimplyFI.org
"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."
RIVER%20SPIRIT
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Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
MO
%3Cp%3E%3Cstrong%3ECreators%3A%20%3C%2Fstrong%3EMohammed%20Amer%2C%20Ramy%20Youssef%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EMohammed%20Amer%2C%20Teresa%20Ruiz%2C%20Omar%20Elba%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Tips%20for%20holiday%20homeowners
%3Cp%3EThere%20are%20several%20factors%20for%20landlords%20to%20consider%20when%20preparing%20to%20establish%20a%20holiday%20home%3A%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cstrong%3ERevenue%20potential%20of%20the%20unit%3A%3C%2Fstrong%3E%20location%2C%20view%20and%20size%3C%2Fli%3E%0A%3Cli%3E%3Cstrong%3EDesign%3A%20furnished%20or%20unfurnished.%3C%2Fstrong%3E%20Is%20the%20design%20up%20to%20standard%2C%20while%20being%20catchy%20at%20the%20same%20time%3F%3C%2Fli%3E%0A%3Cli%3E%3Cstrong%3EBusiness%20model%3A%3C%2Fstrong%3E%20will%20it%20be%20managed%20by%20a%20professional%20operator%20or%20directly%20by%20the%20owner%2C%20how%20often%20does%20the%20owner%20wants%20to%20use%20it%20for%20personal%20reasons%3F%3C%2Fli%3E%0A%3Cli%3E%3Cstrong%3EQuality%20of%20the%20operator%3A%3C%2Fstrong%3E%20guest%20reviews%2C%20customer%20experience%20management%2C%20application%20of%20technology%2C%20average%20utilisation%2C%20scope%20of%20services%20rendered%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cem%3ESource%3A%20Adam%20Nowak%2C%20managing%20director%20of%20Ultimate%20Stay%20Vacation%20Homes%20Rental%3C%2Fem%3E%3C%2Fp%3E%0A
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
UFC%20FIGHT%20NIGHT%3A%20SAUDI%20ARABIA%20RESULTS
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