CPC fines Electricity Authorities of Cyprus £693,000

THE Electricity Authorities of Cyprus (EAC) have been fined £693,000 by the the Commission for the Protection of Competition (CPC) for violation of legislation concerning invoicing, charging and service conditions.

According to yesterday’s announcement by CPC, a self appointed investigation against EAC, which started in February 2004, resulted in the Committee unanimously deciding that EAC had violated Chapter 6(1) of the Competition Protection Law.

The Committee explained that it’s decision was “due to the exploitation of it’s (EAC) despotic position, concerning grants that resulted or may have resulted in the creation of unfair prices and discriminative handling of consumer complaints during the violation of the legislative frame.”

EPA also decided to monitor the EAC’s financial progress, “in relation to the specification of its charges within the competitive frame that is provided by the Law and on the basis of the current general regulation frame of the market. “

Among others, the Committee took into consideration the EAC’s lengthy contribution as a provider of general public service, its cooperation with the EPA Service, its gross income and the fact that it has a monopoly in the purchase, production and provision of electric energy.

CPC also considered that as a business of general financial gain, the EAC provides a non-profit electric service to secluded communities, which is of limited appeal to the market’s financial prospects.

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