Newsroom
The Board of Directors of the Electricity Authority of Cyprus (EAC) is set to review potential electricity tariff adjustments this week, but EAC Chairman Giorgos Petrou said he does not expect a rate increase will be necessary.
“I don’t think increases will be necessary,” Petrou told RIK’s Third Program. “The study will show, responsibly, just like last year, what is needed based on the EAC’s planned projects as part of a ten-year strategy.”
Petrou cited a proposed €1 billion investment plan over the next three years but said he doubts the organization can realistically implement that level of spending. “In previous years, investments were only in the tens of millions, and last year reached €100 million,” he said. “The organization is operating with its current capacity. Implementing €300 million in projects annually over the next three years is not feasible.”
“We have strong reserves”
Petrou emphasized that the final investment amount will likely be far less than originally estimated.
“That €1 billion figure being mentioned; we won’t need that much. It will be significantly less,” he said. “If part of that amount is needed over the full ten-year plan, we’ll recover those funds gradually.”
He also noted that the EAC has financial flexibility. “We have strong reserves,” he said.
Petrou confirmed that the board will reassess the situation before making any final decisions. “We’ll review it at the board. I don’t think we should move forward with increases. The board will assess the matter and we’ll decide accordingly,” he said.
He added that the EAC will likely seek financing options. “We’ll take out loans. No business funds all investments out of pocket. We’ve had discussions with banks.”
Presidential involvement
Asked whether the EAC was prepared to raise rates before the President of the Republic intervened, Petrou denied the claim. “No, we were not ready to implement increases. The President asked us to review the matter,” he said.
He also confirmed that the EAC had previously submitted a request to the Cyprus Energy Regulatory Authority (CERA) seeking approval for tariff increases related to development expenses. “Yes, we had submitted one. We are now re-evaluating it,” he said.
