Fury over green levy
FURIOUS consumers are threatening to take matters into their own hands by refusing flat-out to pay the new three per cent tariff on electricity bills to cover at €10 million ‘green penalty’ imposed on the Electricity Authority of Cyprus (EAC).
To add insult to injury, the surcharge is permanent and any amount collected over and above the €10 million needed right now will be kept and put towards future penalties.
To the average Joe, it’s a lose-lose situation. EAC bills already include a charge on consumers for the creation of Renewable Energy Sources (RES).
So not only does the public pick up the tab for government efforts to finance RES projects; now they also are paying for the failure to meet those efforts.
“We are merely the bagmen,” said EAC spokesman Costas Gavrielides. “What most people don’t realise is that the money collected for RES programs go to the Ministry of Commerce to fund related projects. We don’t keep a single cent. And the same is true for the three per cent surcharge.”
Petros Markou, head of the consumers association, said yesterday they were seeking legal advice on how a case for not paying could stand in court.
Over the last few days, his association has received dozens of calls from frustrated people.
He added: “Let’s be clear: we’re not urging folks not to pay their bills, because that would be breaking the law. We are, however, exploring options.”
Loucas Aristodemou, chairman of the Cyprus Consumers and Quality of Life Association, was far more militant.
“We are advising consumers not to pay the extra three per cent. Personally, I shall be canceling my standing order with the EAC. From now on, I shall pay my bill at the counter. People should tell the employee that they will pay their bill, minus the three per cent charge.”
Whether that’s feasible or not remains to be seen, but Aristodemou says it’s no joke.
“It’s irrational and unacceptable that consumers should pay for the EAC’s failure to meet emissions quotas. What’s more, the only reason the EAC can get away with this is precisely because they are a monopoly, so people are left no choice. In a way, it’s extortion.”
Aristodemou said they were looking at taking legal action in Cyprus and, if that did not work, they would take recourse to European courts.
The three per cent surcharge has been set by the Cyprus Energy Regulatory Authority (CERA), which does not require parliament’s consent or for the change to be voted into law. Assuming consumers refused to pay it, a financial dispute would arise with the EAC and matters could end up in court.
A common complaint is that the EAC should pay for the green fine out of its own pocket. Technically, the semi-government organisation makes not profits, but surpluses. The EAC says it cannot touch its surplus because otherwise there would be nothing left for investments.
What’s worse is that the new surcharge is here to stay. The EAC has been instructed to set up a special account to ensure that proceeds are kept separate from the general balance sheet and do not generate any profits for the organisation.
The fund is to be monitored by the energy regulator. In the event the EAC collects more than €10 million, the extra amount will remain in the special account, helping to pay off future greenhouse gas “penalties”—which are a dead cert at least until the year 2014, the official ETA on the power plant using natural gas as fuel.
Future “fines” could be greater or less, depending on the price of carbon credits, the price of international crude and electricity consumption.
The blanket pricing is also seen as unfair. Why should a person who has one air-conditioning unit in their home, with an average consumption of electricity, have to pay the same percentage charge as someone who keeps three air-conditioners working all the time?
“Perhaps a fairer scheme would be for the surcharge to apply only to people who consume over and above a certain amount of kilowatts per month. Pay-as-you-pollute, if you will,” said Environment Commissioner Charalambos Theopemptou.
