Actions that will remove EAC's dominant position in the electricity market and the adoption of open and transparent procedures in the energy sector are requested by the Electricity Market Association.
In his statements on state radio on Monday morning, the President of the Association, Fanos Karantonis, referred to the serious problems facing the effort to develop a competitive electricity market in Cyprus. Mr. Karantonis did not hesitate to accuse EAC of “suffocating” competition and undermining the development of the energy sector for the benefit of private individuals and consumers.
The talk is about competition
As Mr. Karantonis mentioned, at the Association's meeting with the President of the Republic and the Minister of Energy, four to five main issues that are considered obstacles to the development of the competitive electricity market were raised. According to him, the delay in the implementation of the competitive electricity market for years means that the consumer does not have the choice of better services and lower prices. “It seems that we still don't know clearly when we will have it available so that we can ultimately give the consumer a choice with better services and better prices as the competition always sets,” he said characteristically.
“Yes don't drown out the new entrant for the benefit of the dominant organization'
Asked about a possible entry of EAC into the Renewable Energy Sources (RES) market, Mr. Karantonis noted that such a thing would hurt competition. According to him, EAC is trying to expand its “vital space” in power generation at the expense of new entrants, preventing equal access to the market. “We object to any action by EAC in its attempt to expand its vital space in power generation and increase its size against the competition,” he said. “In order to be able to have competition, the vital space in electricity production must be given to new entrants. The new entrant should not be suffocated for the benefit of the dominant organization”.Mr Karantonis disagreed with the view that the EAC can lower energy costs through its participation in RES, arguing that private providers already offer reduced tariffs to consumers and that further EAC support would increase energy costs. He explained that high energy costs are due to poor planning and decades of mistakes, not competition.
As he pointed out, “from 2021 until today, the private sector and independent suppliers serve close to 9% of final consumers with reduced tariffs compared to the EAC. And there is also the option of reduction. What we have never heard is if all these power generators, the investments made by the private sector and serving end consumers through private suppliers, if all these were not done by the private sector and were done by the EAC, what would be the impact on final energy price we would have today? I tell you it would be more expensive.”
“Open and transparent procedures should be adopted”
Asked about the Association's position regarding the creation of a second power plant in Dekelia, Mr. Karantonis replied: “If there is a need to add power generation, it must be entered into open transparent procedures, in which everyone participates. And let the EAC and the private individuals win it and let the best one claim it”.
They demand immediate implementation of the competitive electricity market
“Today RES are cut by around 30% and all this is the result and interest of the wrong planning of the country's networks and infrastructures for decades”, said Mr. Karantonis at another point, who even noted that the managers of the networks that are under from the EAC they keep the storage systems “in the drawers” because they keep us trapped in a transitional arrangement which does not allow us to expand our portfolio. We want and urgently request the implementation of the competitive electricity market. This is what we want […] Now, if some people don't want it, they should explain to us why they don't want it and why they delayed it already 5 years. And the Ministry and the EAC and all those involved”.
Promises for a competitive market in 2025 – Reservations as to whether they will be implemented
In closing, the Mr. Karantonis referred to the President of the Republic and noted that “what he gave us to understand is that they also want to promote a free competitive market so that we can finally have it in operation by 2025. We maintain our reservations, because we have heard these promises in the past”.
source: Economy Today
