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President Anastasiades received Energy Regulatory Authority's annual report

20/01/2022 13:29

The President of the Republic Nicos Anastasiades received today at the Presidential Palace the annual report of the Cyprus Energy Regulatory Authority (CERA) for 2020, noting that the opening of the electricity market will create healthy competition conditions and will lead to a significant reduction in electricity costs.

In statements as he submitted the report to President Anastasiades, CERA Chairman Andreas Poullikkas said that the report of the Cyprus Transmission System Operator, is included in the annual report for the last time since according to the new harmonisation legislation, CTSO is now legally separated from EAC, with CERA being the competent authority for the regulation of the electricity and gas markets in Cyprus, a presidency press release says.

Poullikas said that after a six-month trial phase, the implementation of the harmonised and fully compliant with the EU target model competitive electricity market in Cyprus will begin in October, with the licensing of electricity suppliers other than electricity producers.

Regarding electricity prices, he noted that apart from the small increase in international oil prices, there has been a huge increase in the cost of the carbon market, due to the natural gas cost increase in Europe, the subsequent use of coal back-up units by the energy producing companies and the consequent high demand in the carbon market.

As regards natural gas, CERA has already licensed the Gas Transmission System Operator and the Gas Plant Operator, while the legislation to convert the Natural Gas Public Company (DEFA) into a semi-governmental organisation is expected in order to license the sole supplier as well, noting that natural gas is expected to be available in Cyprus in the middle of next year.

Lastly, it was mentioned that energy transition activities, such as storage technologies and the redesign of the electricity transmission and distribution system, have been included in CERA`s strategic planning. At the same time, the EuroAsia interconnector and the EuroAfrica interconnector are being closely monitored, while the regulatory framework for hydrogen technologies is under development.

For his part, the President said that the opening of the electricity market will create healthy competition conditions and will lead to a significant reduction in electricity costs, adding that CERA’s policies on green transition are important for the policies of the state as well.

"I believe that an isolated market such as Cyprus will open up to new possibilities with the EastMed and the EuroAsia and EuroAfrica interconnector plans, with one of the options being to exploit the natural wealth of the Eastern Mediterranean basin," President Anastasiades noted.