EAC should have the ability to offer low electricity prices, Energy Minister says

The Ministry's vision for the Electricity Authority of Cyprus (EAC), as the largest energy producer, is to have the ability to push down the cost of electricity, Energy, Commerce and Industry Minister George Papanastasiou has said, announcing the arrival of competitive electricity markets in July 2025.

Papanastasiou was speaking at a press conference on 9 July, during which EAC's activities for 2023 were presented, in Nicosia.

He referred to the actions taken by the government to tackle the energy crisis, noting that a series of measures were taken to protect households and businesses, with the cost exceeding half a billion euro. One of the measures, he said, which has been decided to be extended until next October, is the staggered electricity subsidy.

Referring to what steps the government expects EAC to take, he said, among other things, that EAC, at this stage, should quickly and effectively promote all the required actions for the faithful implementation of the ten-year network development programme and the upgrade of the Dhekelia power plant.

He pointed out that "EAC can and should become a reference point for all electricity companies that will be active in the electricity market, upgrading the services it provides and, of course, the service to the public in general", saying that "our vision for EAC, as the largest energy producer, is to have the ability to push the price of electricity costs down."

The Energy Minister said that "this Organisation needs to change", announcing the arrival of competitive electricity markets in July 2025 and stressing that "the Organisation will have to meet the challenges and maintain a competitive market."

The Chairman of the Board of Directors of EAC, George Petrou, while reviewing the work of EAC for 2023, said that the primary objective of the new Board of Directors is to maintain EAC's leading position in the country's energy sector.

"We must meet the expectations of the State and make every effort to ensure that EAC remains the solid, strong, energy pillar of Cyprus," he said.

He added that the transition to green energy and the reduction of greenhouse emissions is a top priority for EAC, noting that the expansion in Renewable Energy Sources, the addition of green energy to EAC's production mix and energy storage are a one-way process. 

On the financial front, Petrou said that EAC's total revenues in 2023 amounted to 1.3 billion euro, total expenses reached 1.2 billion euro with an operating profit of 61 million euro and a net profit for the year of 36 million euro.

"The operating profit corresponds to a profitability of 3.1% on average net assets employed," he said, noting that the improvement in results compared to the previous year was due to the implementation of tariffs from June 2022 and the termination of the 65% discount concession on network usage charges in March 2022.

Petrou proceeded to an extensive analysis of important issues of EAC's activity, concerning the production, transmission, distribution, supply and non-regulated activities of EAC.

He also said that EAC has published its first Sustainable Development Report for 2022 which includes the Organization's policies, actions and performance on environmental, social and governance issues.

Addressing the press conference, Adonis Yiasemides, General Manager at EAC, stated that the energy sector, both internationally and in Cyprus, is facing significant challenges, adding that "our vision is clear, a green energy future".

He added that the Organisation's goal is to reduce dependence on liquid fuels and increase the use of renewable energy sources, indicating that the addition of renewable energy projects, in the production mix of EAC, has multiple benefits for the country.

(Source: CNA)