The Electricity Authority of Cyprus (EAC) board of directors, under the leadership of its new president Georgios Petrou, convened yesterday for a pivotal session that was anticipated to bring significant news for electricity consumers.
Speculation was rife that the board might retract its plea to the Cyprus Energy Regulatory Authority (CERA) for a 6% hike in electricity tariffs. However, after a marathon five-hour meeting, the board opted to defer any decision.
In an official statement released by EAC, it was stated, “No decision was made by CERA regarding the adjustment of tariffs. Therefore, there is currently no issue to announce. When a relevant decision is made by CERA, the Board of Directors will study it, taking into account the Development Program and the organisation’s needs, in combination with its financial capabilities, always with a sense of social responsibility towards the community and especially consumers, it will make the necessary decisions.”
This move, though, underscores a notable moment of hesitation on the part of EAC’s board, as it chose to prolong the process rather than take immediate action.
Sources suggest that internal concerns over the financial viability of the decision played a significant role in the board’s deliberations.
Despite pressure from executives advocating for the necessity of tariff hikes to ensure operational continuity and fund development projects, the board refrained from endorsing such increases.
The decision comes amidst mounting economic pressures and public scrutiny, particularly after CERA rejected proposed tariff hikes in 2023, citing concerns over public interest and economic strain on households and businesses.
CERA had sought clarification from EAC’s new board regarding the status of the tariff increase request, in light of recent statements by key government figures.
EAC’s announcement indicates that the request remains active, leaving the final decision on its implementation pending until CERA’s response.
“The Board of Directors, as is known, was appointed by the Cabinet and officially assumed its duties on February 3, 2024, six days ago. Additionally, at this stage, no decision was made by CERA regarding the adjustment of tariffs. Therefore, there is currently no issue to announce,” the EAC statement reaffirmed.