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Friday, March 1, 2024

EAC evaluates its financial data and decides on the electricity increase

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    Responsible decision for increases, says the EAC President – Waiting stop from CERA – Concerns from the Consumers Association about the future of EAC services due to no tariff increases

    At tomorrow's session of the Board of Directors we will examine the finances of EAC strong> and “we will take a responsible decision” in relation to the Authority's request for a 6% increase in 2024 to the final tariffs , the President of the EAC said at the KYPEGiorgos Petrou, who at the same time expressed the readiness of the Board to withdraw, after legal advice he will receive, the appeal made by the Authority< strong> in court against the decision of the Energy Regulatory Authority (CERA) not to approve the 25% increase for 2023 in basic tariffs.

    However, according to information from KYPE, the Energy Regulatory Authority (CERA) has in front of it the EAC's request for a 6% increase for 2024, but due to the different statements by the EAC on the matter, it is currently keeping waiting attitude, until the EAC Board of Directors takes its final position in relation to the issue of the increase.

    However, the President expresses problems in statements to the KYPE of the Pancypriot Consumers AssociationMarios Drousiotis on the future of EAC services in case the increases requested by the Authority are not implemented. He also expresses concern as to whether the consumer will pay larger increases in installments in the future.

    Specifically, Mr. Petrou told KYPE that during tomorrow's session of the Board of Directors there will be a presentation by the financial department in relation to the 6% increase in tariffs, while the urgent issue of the upgrade of the Unit in Decelia,noting that due to the many issues that will be discussed in tomorrow's session, the issue of EAC's appeal to the court against CERA's decision not to approve the 25% increase in the final tariffs for 2023 will probably be transferred to the Board session next Tuesday.

    Mr. Petrou said in relation to EAC's request for a 6% increase, that “if we take a decision based on the Authority's financial data, not to proceed with the increase, I hope that the Government to provide the subsidy it gives for the price of electricity”.

    “We will look at our finances on Friday and make a responsible decision”, without affecting the development program of the Authority, he stressed.

    If we both try, both the EAC and the Government, it will be possible the consumer to relieve himself from the pressure of electricity prices, he added.

    In relation to the 25% increase for 2023, the President of the EAC said that this is no longer the case because, as he explained, the forecasts for the future presented to the Authority's then Board of Directors to make the decision to increase the tariffs were not confirmed in 2023 and “therefore the 25% should not apply”.

    “That is why we said we will not support it,” he said and explained that a business is forced to make timely predictions about the future, but today's data is different from the forecasts at the time.

    “The appeal” to the court was also left to be withdrawn, which “we want to withdraw after receiving legal advice from the Board of Directors”, during tomorrow's session, which will be held in the presence of the Authority's legal advisors.

    < p>He stated that the decision to withdraw the appeal “will be taken by the Board of Directors but I don't see why it shouldn't be done”. invoices

    Furthermore, in statements to KYPE, the President of the Pancypriot Consumers Association Marios Drousiotis said that “we were all happy at first sight that we will avoid the 25% of 2023 and ia is only 6% for 2024“, expressing, however, concern and problem that “at some stage EAC will provide reduced services< /strong> and will not be able to meet its needs”, due to the millions it will lose from the non-implementation of the specific increases.

    “We are concerned because the future of the selling price of electricity< /strong>it does not seem to be more favorable or it will be inauspicious due to the fact that in the future the EAC may carry out reduced services as the development program of the EAC will not be able to be done or will be done with cuts”, he added.

    Mr. . p>

    “This suspension of 13% on final tariffs (25% on basic pricing prices) is like the suspension of loan installments,” he added. on the other hand, I'm sorry”, he said and added that when no increases were introduced in 2023, then a 6% increase in 2024 is fair. “You cannot postpone fair requests”, he added.

    Regarding the non-approval last year by CERA for a 25% increasein the basic exchange rates (13% increase in the final tariff), Mr. Drousiotis said that in his statements at the time he had stated that “from the decision of CERA it is understood that the request of EAC is justified but due to special circumstances and public interest it is not approved it”.

    Mr. Drousiotis said that these requests of the EAC are considered justified and added that in case the Authority's appeal is withdrawn by the court, “it means that the EAC will be deprived of around 90 to 100 million euros in revenue”, adding that “these revenues would be used for the development, among other things, of the Authority's network, which currently presents problems and needs an immediate upgrade to accept energy from RES”.

    “If we deprive these millions from the EAC, means that the Authority at some later stage will be weakened and will find itself unable to serve the needs of RES”, he said and added that “everyone now admits that we have problems in the network and last In the summer we had power outages”.

    Furthermore, the President of the Consumers Association wondered “maybe there are some who influence the decision-making centers (executive, legislative or other powers) so that the Authority is weakened in order to make an effort sale” and referred to the case of Cyta, which a few years ago, as he said, “was on the verge of being sold to the private sector”. to try to do something similar to what they tried to do with Cyta,” he asked.

    Source: cyprustimes.com

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