The Electricity Authority of Cyprus will review its development plans if the Energy Regulator does not approve the required increase in its bills.
“We will expect the results of the Energy Regulator, who is examining the request of the former Board of Directors of the Authority for a 2% increase in the bills in the next 6 years. We will weigh the possible increases with the anticipated revenues and we will revise our development plans correspondingly”, Chairman of the Authority said after his meeting with the House Commerce Committee.
As for EAC’s financials, the Chairman said that they are attributable to the unchanged bills in the past 26 years and the fact that in the past 6 years the governments took from its funds – in the form of dividend or tax – around €250 million.
Invited to reply whether he agrees with the proposal of Chairman of House Commerce Committee, Lefteris Christoforou, on a VAT cut in case that the Energy Regulator approves an increase, he was not clear.
“What we requested is the taking of such measures so that the Authority gains back its robustness. But we don’t want to show how”, he said.
Responding to the criticisms of DISY Vice President, Averof Neophytou that EAC charges consumers with the highest prices despite the monopoly, he wondered what kind a monopoly is this if it has no right to determine the sale price of electricity and the government takes cash from its funds. He clarified that EAC is not loss-making but the return on its capital is very low compared to its loans and is development plan.
In his reply to Finance Minister, who rejected any VAT cut in EAC, Chairman of the Committee, Lefteris Christoforou said that Mr. Stavrakis is aware of the fact that the Authority’s accounts are burdened with taxes for the renewable sources of energy and there is no room for other taxes.
“Any increase in the electricity bills must be deducted with a VAT cut. The Parliament will do everything to have a VAT cut for any increase”, he concluded.
“We will expect the results of the Energy Regulator, who is examining the request of the former Board of Directors of the Authority for a 2% increase in the bills in the next 6 years. We will weigh the possible increases with the anticipated revenues and we will revise our development plans correspondingly”, Chairman of the Authority said after his meeting with the House Commerce Committee.
As for EAC’s financials, the Chairman said that they are attributable to the unchanged bills in the past 26 years and the fact that in the past 6 years the governments took from its funds – in the form of dividend or tax – around €250 million.
Invited to reply whether he agrees with the proposal of Chairman of House Commerce Committee, Lefteris Christoforou, on a VAT cut in case that the Energy Regulator approves an increase, he was not clear.
“What we requested is the taking of such measures so that the Authority gains back its robustness. But we don’t want to show how”, he said.
Responding to the criticisms of DISY Vice President, Averof Neophytou that EAC charges consumers with the highest prices despite the monopoly, he wondered what kind a monopoly is this if it has no right to determine the sale price of electricity and the government takes cash from its funds. He clarified that EAC is not loss-making but the return on its capital is very low compared to its loans and is development plan.
In his reply to Finance Minister, who rejected any VAT cut in EAC, Chairman of the Committee, Lefteris Christoforou said that Mr. Stavrakis is aware of the fact that the Authority’s accounts are burdened with taxes for the renewable sources of energy and there is no room for other taxes.
“Any increase in the electricity bills must be deducted with a VAT cut. The Parliament will do everything to have a VAT cut for any increase”, he concluded.
3287.99
1275.09
