CONSUMERS were yesterday no closer to finding out how much their electricity bills would go up and were only told that they would be nowhere near as high as what had been rumoured.
Despite deputies’ efforts to push energy regulators and the government for answers, the Energy Regulating Authority (CERA) and Commerce Minister remained tight lipped but reports suggested that the increases would come into effect next month.
Moreover in spite of assurances that any increase would be under 10 per cent, the Electricity Authority (EAC) confirmed it had spent tens of millions since the July 11 blast which wiped out the island’s main power station.
The issue was discussed at yesterday’s House Commerce Committee. Asked to attend were CERA chairman Giorgos Shammas, Minister Praxoulla Antoniadou and EAC general manager Stelios Stylianou.
Shammas said speculation in the media regarding hikes in the region of 40 to 45 per cent on electricity bills were “unrealistic”, but gave no indication how much the increases would eventually be.
Having received the EAC’s report last Friday, CERA would be in a position to give its final numbers by the end of the month, he said.
The report includes a breakdown of the EAC’s operational costs following last month’s explosion until the end of February 2012, including the price of renting generators, additional fuel costs, the purchase of energy from the occupied areas and the loss of income from the non-production of its own units, said EAC boss Stylianou. It does not include suggestions about how to recoup the money, he said.
Nevertheless he said the initial cost of the blast to the authority had been €600,000 a day. Although Stylianou said this price has since dropped, it is still reported to be in the region of €500,000 daily.
Stylianou made it clear the EAC could not cope if its costs were not recovered.
“Otherwise things for the EAC will be very, very difficult,” he said.
During the committee meeting the situation became heated with DISY and EDEK deputies clashing with those of AKEL. The two opposition parties demanded answers from CERA and the government and AKEL defended the independent authority’s inability to respond at this stage. The opposition deputies also made it clear they would not accept the burden of the costs being forced on consumers who were already struggling with their financials.
The deputies were however led to believe any increase to consumers would in single digits. Minister Antoniadou also confirmed the government would cover a portion of the cost and secure funding from the EU to do so.
The deputies were yesterday clearly unhappy that they had not received answers to their questions and told attendees they had not come to the meeting to listen to reports and ideas being thrown about.
But CERA explained that as an independent institution it had to first examine the numbers before drawing any conclusions and that it was bound to do so by EU law.
Antoniadou also defended the government and said it was working hard to reach a resolution and that her ministry had appeared before the committee because it had been asked to do. She said she wasn’t just throwing out ideas, but giving the information that was available to her and which she was privy to disclose.
