CERA proposes EAC operations are unbundled

The Cyprus Energy Regulatory Authority (CERA) published on Tuesday its final regulatory decision for the new state of affairs in the energy market, proposing the EAC’s operations are unbundled.

CERA proposes the “net pool” model, where the operations of the state power company (EAC) are unbundled, and the EAC’s production and supply operations separated. EAC Production will then strike bilateral agreements with suppliers (EAC Supply and private players) for the sale of energy, at regulated prices. Other licensed operators may also participate.

This regime would apply to the bulk of energy production. For the remainder of the capacity, which CERA has not settled on but estimates at 10 to 20 per cent, prices would be set dynamically, based on daily bids.

This will be done via the Day-Ahead Market, where half-hourly energy blocks are traded for the next day: participants submit offers/bids where they specify the quantity and the minimum/maximum price at which they are willing to sell/purchase.

The report, over 100 pages long, has been posted on the CERA website (Greek only) at: http://www.cera.org.cy/main/data/articles/rythmistikiapofasi01_2015.pdf

The decision will be published in the government gazette on May 15.

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