Revision of electricity prices to be discussed today

THE ELECTRICITY Authority (EAC) will meet with the energy regulator today to decide on whether to revise electricity prices downwards, after the 4.0 per cent increase imposed last month.
The meeting will take place at the offices of the Energy Regulatory Authority (CERA), following a discussion by the EAC board yesterday on the request made by CERA last week to reconsider its prices.
Chairman of the House Commerce Committee Lefteris Christoforou yesterday called on the EAC to remove the surcharge imposed on consumers after the Mari naval base blast wiped out the island’s main power plant. He argued that the electricity authority has already taken over €100m from consumers who were not to blame for the blast.
On Monday, VAT rose by one percentage point to 18 per cent, bumping up the already high cost of electricity.
Last week, CERA asked the EAC to reconsider the latest rise in electricity prices, which came into effect on January 1.
Prices were adjusted under the EAC’s recalculation of its fuel-cost formula to cover the purchase of carbon credits for greenhouse gas emissions, rising approximately 4.0 per cent.
The EAC adjusts its fuel cost formula – the major component of electricity bills – every month. The electricity rate – kilowatt hour (kWh) – is the sum of the fuel cost plus the price of carbon credits.
The EAC will have the opportunity to argue its case in favour of the price increase today in its meeting with the regulatory authority which will be expected to make a decision on whether to revise the adjustment on electricity bills or not.
Cyprus boasts one of the highest, if not the highest, price tag for electricity in Europe.
DISY deputy Christoforou also met with CERA head Giorgos Shammas yesterday to call for a 10 per cent reduction in electricity prices. 
Speaking after the meeting, the commerce committee chairman said: “The cost of electricity on households and businesses is unbearable.” 
He also called on the EAC not to cut electricity for those vulnerable segments of the population, especially the unemployed, who are struggling to pay their bills during the winter. 

 

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