Turkey implemented the electricity sector reform by which the Electricity Market Law no. 4628 passed in February 2001. Recently, all segments of the Turkish electricity sector are dominated by a vertically integrated, public-owned monopoly-Turkiye Elektrik Kurumu-the Turkish electricity institution. The Turkish electricity reform involves vertical deintegration of generation, transmission and distribution, introduction of competition into generation and retail sale, establishment of an independent regulatory authority and privatization of public generation and distribution entities. This article provides an overview of the Turkish electricity sector reform and defines some problems that may affect the reform success. (c) 2004 Elsevier Ltd. All rights reserved.