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EAC is considering appealing to CPC decision

12/12/2005 15:15
The Electricity Authority of Cyprus is considering appealing to the decision of the Competition Protection Committee on the imposition of a fine of £693 thousand for breaches, EAC Chairman, Charilaos Stavrakis announced at a press conference on Monday.

Mr. Stavrakis said that EAC exercised social policy with the state’s “blessings” and CPC’s decision does not concern overcharges to any groups of consumers. “We are guilty because we offered cheaper electricity to households and imposed higher rates to businesses. We are proud of this decision. We have the right to appeal within 75 days. Our legal advisors are dealing with the case but we have to see whether this appeal will be in our own interests”, he said.

Responding to the question whether the appeal will concern the reduction of the fine, Mr. Stavrakis said that it will be for the entire sum.

Institutional ambiguity

EAC also sees a case of institutional ambiguity, conflicting supervisory frameworks and conflicting instructions on behalf of the government and the supervisory and regulatory authorities on price fixing. “EAC believes that the Committee’ s decision is the result of the current environment. Although CPC refers to EAC’s obligation to abide by and adopt the instructions of the competent authorities, it condemns EAC based on its own interpretation”, Mr. Stavrakis stated.

Consumers

Invited to comment on the consumers’ benefit from the decision, Mr. Stavrakis said that the increase in the price of electricity is possible. “EAC in cooperation with the competent Ministries tries to end up with a compromise proposal”, he concluded.