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CCCI: Investors are worried about a competitive electricity market

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CCCI: Investors are worried about a competitive electricity market

Insider / ΚΥΠΕ

The discussions regarding the competitive electricity market at this critical juncture, destabilize and oppose the effort to implement the competitive electricity market, creating additional concern among investors, who have invested several million euros, according to the CCCI.

Specifically, in the announcement, the CCCI states that “in recent weeks, there has been a strong mobility of statements, publications and attitudes around the issue of the liberalization of the electricity market, which causes confusion and sends wrong messages. It should be remembered that regulatory stability and transparency are key elements for investor participation in the competitive electricity market. “These discussions at this critical juncture are destabilizing and counteracting the effort to implement the competitive electricity market, creating additional concern for investors, who have invested several million euros.”

On the occasion of these publications, the CCCI points out the following:

The ultimate goal of the liberalized electricity market is to create a single European, liberalized energy market, where in the long run there will be an improvement and expansion of energy services provided to final consumers at more competitive and affordable prices.

According to a Regulatory Decision of CERA referred to as “the Detailed Plan for Differentiation of the Regulatory Framework of the Operation of the Electricity Market of Cyprus” K.D.P. 164/2015, the market model that Cyprus will follow was adopted. After almost 7 years, the coveted liberalization of the electricity market, seems to lead to implementation within 2022.

Achieving market liberalization has required years of consultation, strong political will, and clear regulatory decisions and regulations to dismantle monopolies and completely separate production from electricity transmission and distribution.

Markets that have been fully and successfully liberalized appear to have achieved significant reductions in energy costs for consumers in the long run, even if there is a small increase in the short run due to initial investment.

Only the combination of RES and storage technologies can lead to the economically optimal development of the energy mix and networks, and therefore to the long-term reduction of prices to the final consumer.

The introduction of “auctions” or “bidding” for wind and photovoltaic systems counteracts and neutralizes in practice, any benefit for consumers that seeks to bring about market liberalization. In Germany, where this practice was applied, it mainly benefited the large producers in the industry while limiting the direct and indirect participation of the small ones.

The recent “RES auctions” in the international arena seem to fulfill certain specific purposes such as new generation capacity – diversification of energy mix, maintenance and / or replacement of existing production capacity as well as supply of electricity to last resort suppliers.

The position of the CCCI is that regulatory stability is a very important parameter in the smooth transition to the competitive electricity market.

The resumption of bidding for tenders is not part of the solution, exacerbating investor concerns and leading to the cancellation of all efforts to expand options and competition in electricity generation and supply, depriving consumers of the right to freely choose a supplier.

Source: www.philenews.com

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