The discussion surrounding Electricity Authority of Cyprus’ (EAC) request for a 6% increase in tariffs for 2024 is muddled by confusion after Energy Minister Giorgos Papanastasiou expressed his belief that EAC will not proceed with imposing the 6% increase on its tariffs.
He reiterated that “the President of the Republic’s recommendation to the new board of directors of the authority is to carefully consider the issue so that this increase in electricity rates is not transferred or imposed.”
According to the minister, “there is currently a consultation between the Cyprus Energy Regulatory Authority (RAEK )and EAC, so that there can be a common conclusion and handling of the issue, and it is expected that announcements will be made within the day, which will be for the public good.”
According to Stockwatch, EAC’s Board President George Petrou stated that “EAC’s board of directors may announce its decision within the day,” after RAEK announces its decision.
Mr. Petrou emphasized that the final decision should be made by EAC, as it concerns the development and financial situation of the organization.
However, he added that “we should faithfully follow whatever decision RAEK makes!” It can be inferred that the final say is not with EAC but with RAEK.
However, information from Philenews reports that since last week, RAEK has sent a letter to EAC’s board of directors, asking them to inform whether EAC’s request for a 6% increase in 2024 still stands or has been withdrawn, given the intervention of the President of the Republic and the reassessment of the request by the new board of directors.
The same information states that RAEK has requested EAC’s management to inform them by today if the request for increases still stands. If the request remains on the table, the likelihood of its approval by RAEK is quite high.
In case RAEK approves the request, its implementation by EAC is mandatory.
Members of EAC’s new board estimate that the new management needs time to be thoroughly and reliably informed about EAC’s financial situation, its current and future obligations to contractors and other collaborators, and the decision – by EAC and RAEK – should be made soon.