In an announcement, the Electricity Authority of Cyprus rejected allegations that it will increase the electricity prices, stressing that after the gradual drop in the price fuel, electricity prices will drop gradually too.
“The latest increases are exclusively attributable to the increase in the price of fuel and EAC has received not even a cent”, the announcement said.
“EAC believes that the latest statements are unfortunate. We wish to clarify that the Authority has not submitted a request for an increase in electricity prices. Obviously, there has been a confusion with regard to an older request to the Energy Authority in November 2006”, it noted.
EAC explained that its deliberations with the Energy Authority on the preliminary proposal have not been completed yet. “EAC itself requested not to impose any increases now but only when fuel prices allow it”, the announcement said.
In relation to its operating expenses, EAC said that 70% of its total expenses are linked to the fuel prices.
“EAC is interested more than anyone in the settlement of its finances and the restriction of its operating expenses. Therefore, it assigned to a well-known foreign firm to reorganize the Organization, to improve its procedures and to restrict its expenses. The efforts for the improvement of its operation is already in progress so that the Cypriot citizens can enjoy electricity in lower prices”, EAC noted.
Price increases are unjustified
Chairman of Energy Regulatory Authority of Cyprus, Costas Ioannou rejected EAC’s request for an increase of 10% in the fixed charge of the electricity bills.
In his statements to Parliament, Mr. Ioannou said that an increase in electricity prices at the current stage is not justified.
Mr. Ioannou admitted that EAC’s request is pending two years now but clarified that “the Energy Authority requested by EAC to submit a 5 or 10-year strategic plan, which will provide for the increase in productivity and the drop in operating expenses. This is the only way to justify a price increase”.
Mr. Ioannou also ensured the consumers that the electricity bills will drop by the end of the year, while for consumption of up to 500 kilowatts per household, price cuts will reach 10%.
“The Energy Authority proceed to all necessary inspections and with the delivery of the new fuel load, the cut in electricity prices wil pass through to the consumers properly”, he added.
On the other hand, the members of the Commerce Committee will have talks on the issue next week in the presence of EAC Chairman.
“The latest increases are exclusively attributable to the increase in the price of fuel and EAC has received not even a cent”, the announcement said.
“EAC believes that the latest statements are unfortunate. We wish to clarify that the Authority has not submitted a request for an increase in electricity prices. Obviously, there has been a confusion with regard to an older request to the Energy Authority in November 2006”, it noted.
EAC explained that its deliberations with the Energy Authority on the preliminary proposal have not been completed yet. “EAC itself requested not to impose any increases now but only when fuel prices allow it”, the announcement said.
In relation to its operating expenses, EAC said that 70% of its total expenses are linked to the fuel prices.
“EAC is interested more than anyone in the settlement of its finances and the restriction of its operating expenses. Therefore, it assigned to a well-known foreign firm to reorganize the Organization, to improve its procedures and to restrict its expenses. The efforts for the improvement of its operation is already in progress so that the Cypriot citizens can enjoy electricity in lower prices”, EAC noted.
Price increases are unjustified
Chairman of Energy Regulatory Authority of Cyprus, Costas Ioannou rejected EAC’s request for an increase of 10% in the fixed charge of the electricity bills.
In his statements to Parliament, Mr. Ioannou said that an increase in electricity prices at the current stage is not justified.
Mr. Ioannou admitted that EAC’s request is pending two years now but clarified that “the Energy Authority requested by EAC to submit a 5 or 10-year strategic plan, which will provide for the increase in productivity and the drop in operating expenses. This is the only way to justify a price increase”.
Mr. Ioannou also ensured the consumers that the electricity bills will drop by the end of the year, while for consumption of up to 500 kilowatts per household, price cuts will reach 10%.
“The Energy Authority proceed to all necessary inspections and with the delivery of the new fuel load, the cut in electricity prices wil pass through to the consumers properly”, he added.
On the other hand, the members of the Commerce Committee will have talks on the issue next week in the presence of EAC Chairman.
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