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CERA is considering new increases from EAC

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Mr. Pullikkas recalled that EAC had submitted a request last year that would have resulted in a 25% increase in the final price of a kilowatt which CERA had rejected

Νεες αυξorσεις α&pi την ΑΗΚ εξεταζει η ΡΑΕΚ

EAC has submitted new increases to CERA for examination, which are however significantly reduced compared to last year's request, as stated by the President of the Cyprus Energy Regulatory Authority (CERA), Andreas Pullikkas, during discussion of the CERA budget for 2024 in the Finance Committee of the Parliament.

Mr. Pullikkas recalled that EAC had submitted a request last year that would have resulted in a 25% increase in the final price per kilowatt which CERA had rejected. At the moment, he added, he has in front of him the tariffs for 2024 for review, which, however, as he mentioned, are considerably reduced compared to last year.

As mentioned, however, the EAC appealed to the court for the rejection of her request last year by CERA and in case she wins, the cost of 25% on the kilowatt hour will be asked to be borne by the consumer.

Regarding the cost of greenhouse gases that affect the price of electricity upwards, Mr. Pullikas stated that it is currently estimated at 70 to 90 euros per ton, however the cost will continue to rise continuously until 2030 and depending on needs for investments in green energy. He added that there are also predictions that it could go up to 200 euros per ton and said that the only way to avoid paying for polluters is to invest in green energy.

Answering questions from MPs, Mr. Pullikkas was in favor of taxing windfall profits due to energy price increases, as long as they are not reinvested in green development.

As regards the hydrogen market, he stated that CERA is proceeding with the regulatory framework for this market, just as it has prepared the frameworks for natural gas and electricity interconnections. However, he clarified that the strategies in each sector are drawn up by the state.

Regarding the storage systems for Renewable Energy Sources (RES), the President of CERA emphasized their importance in order for RES to become reliable. So far, he said, CERA has licensed storage systems for approximately 200 MW of RES and expressed the hope that these will proceed.

At the same time, he emphasized the importance for CERA of the purchase of consulting services, which would transfer the necessary know-how to the staff of CERA and noted that the purchase of consulting services is for one time and as soon as the training of the staff is completed it is terminated.

Further rebates are coming for companies investing in green energy

In addition, the Committee has started the debate on the bill approved by the Council of Ministers on May 31 for tax rebates on capital expenditures of companies that have the goal of energy upgrading and energy saving. The expenses will concern the fiscal years 2023-2025.

Specifically, to improve the energy efficiency of buildings, an increased capital discount of 7% is granted instead of the 3% that applied until today on specific capital costs. As explained by the representative of the Ministry of Finance, the amortization will take place in 14 years instead of 30.

Furthermore, for investment in machinery and equipment connected to RES systems, as well as technical energy efficiency improvement systems, an increased capital deduction of 20% is granted instead of 10% granted under the existing legislative framework, on capital costs. Among them are thermal insulation of water pipes, energy heat recovery systems, the market of photovoltaic systems and the market of energy storage batteries. These investments will be amortized in 5 instead of 10 years.

Also for new commercial electric vehicles, as well as taxis and buses, an increased capital discount of 25% is granted from the 20% currently granted.

Also, the costs incurred for an energy upgrade study of businesses, or costs for the issuance of an energy saving certificate, are deducted from taxable income.

These incentives, according to the Ministry of Finance, in conjunction with plans of the Ministry of Energy and of the Ministry of Transport, are expected to make a significant contribution to reducing the operating costs of businesses in the short and long term, but also to Cyprus' green energy goals.

On behalf of interested parties, it was suggested that electric vehicle charging stations be included in the discounts. There was also a suggestion that the incentives start from 2024 and end in 2026.

The fiscal impact of the measure is expected to reach 600 thousand euros.

Locations deputies

The Deputy Chairman of the Parliamentary Finance Committee, member of DIKO Chrysis Pantelidis, in statements after the end of the Committee's session, stated that all members of the Committee have expressed their anxiety and concern in relation to the need to reduce the cost of electricity energy. He added that the estimates and forecasts are not the best and emphasized the need for the penetration of renewable energy sources and for there to be options and solutions that will reduce the unaffordable costs of pollutants and make it easier for households and small and medium-sized businesses.

He welcomed the government's initiative on the Solar for All scheme which will be implemented in the coming weeks. He also noted the need to penetrate storage systems in order to make maximum use of RES.

When asked if there are any moves in this area, he mentioned that moves are being made by the Ministry, with encouragement and support for such investments and reminded of relevant statements of the Minister of Energy. He noted, however, that more needs to be done.

EDEK MP Ilias Myrianthous welcomed the plan for tax rebates for businesses that give impetus to the goals for the green transition. He also suggested that these incentives for electrification should be extended to private saloon cars in addition to commercial ones under certain conditions.

He also mentioned that electric vehicles do not have any additional energy consumption, so any other will not be refunded. amount as a discount on expenses. He also said that he expressed his views to the Minister of Transport who approached them positively and requested consultation with the Ministry of Finance. At the same time, he said that based on other suggestions made, they expect some variation of the bill from the Ministry's side.

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Source: www.kathimerini.com.cy

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