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House opposes EAC bill hikes

07/02/2012 11:14
The members of House Commerce Committee warned EAC on Tuesday to cancel its decision on imposing a 5% interest rate and €5 on delayed payments in its bills, otherwise they will take measures.

During the session, Chairman of the Committee, Lefteris Christoforou warned that if EAC fails to cancel its decision, “the Committee will hold an extraordinary session next Thursday to take measures that will protect consumers from abuses”.

According to Mr. Christoforou, the measures will be such that will protect consumers.

At the same time, he said that EAC’s move is unacceptable and provocative.

Similarly, DISY MP, Zacharias Zachariou said that many households are at an impasse, while some use candles due to their weakness to pay the bills.

Ecologists are also against the hike and demanded the cancellation of the decision.

EAC Vice Chairman, Giorgos Pistendis ensured, however, that he will forward the Committee’s proposal to the Board of Directors in the afternoon.

“EAC adopted the measure after CERA’s approval since it is a deterrent measure for consumers to pay their bills on time”, he said.

Mr. Pistendis explained that the 5% interest rate and the one off €5 are for delayed payments exceeding €100 per annum.

“For arrears of €200, consumers will be charged, on the basis of EAC’s decision, 3 cents a day. For similar arrears, the sewage councils, the local authorities and other semi-governmental organizations charge consumers with €40 a day”, he said.

“Where there is a proven problem in payments, EAC makes arrangements before cutting the power off”.

“This measure is much more humane than cuts. It is deterrent rather than tax collective. EAC has a special tariff for the vulnerable groups. The Authority has annual revenues from the consumption of electricity of €880 million”, he said.

According to Mr. Pistendis, EAC introduced the measure after observations by the General Auditor and the State Aid Superintendent.

Besides, Vice Chairman of CERA, Constantinos Iliopoulos said that the only intervention of the state in prices is through article 88, which provides for the imposition of public utility services to support consumers.

Responding to questions, he said that there was no intervention on behalf of Commerce Minister so far.

On behalf of EAC trade unions, Mr. Christos Christodoulides indicated that based on the law of energy poverty, the Commerce Minister may give directions to CERA to issue regulations prohibiting the electricity cut to vulnerable consumer groups.