EMA slams EAC for undermining electricity market competition

The Electricity Market Association (EMA) is expressing concern over recent requests made by the Electricity Authority of Cyprus (EAC) to President Nicos Christodoulides. EMA argues that EAC’s actions contradict the goal of a competitive electricity market, which aims to lower costs for consumers through free trade and competition.

EMA highlights that restrictions on contracts between electricity generators and suppliers could lead to higher costs for consumers. The association believes in equal treatment for all market participants and argues that the goal should be to reduce electricity prices for households and businesses.

Regarding EAC’s request to review its functional separation, EMA states that Cyprus’ European Directive requires EAC to separate its core activities into generation, transmission, distribution, and supply. EMA asserts that EAC’s separation has been certified and is crucial for market operation.

EMA also responds to EAC’s proposal to exempt existing renewable energy projects from additional licensing, stating that all permits must follow state regulations. On the issue of hybrid systems, EMA explains that requiring bilateral contracts with EAC Supply helps control tariffs and ensure fair pricing.

Addressing concerns about cuts in photovoltaic power generation, EMA argues that these are seasonal and necessary to maintain grid stability. EMA suggests that increasing renewable energy in the mix will benefit consumers by lowering prices.

EMA adds that it does not participate in the Transitional Electricity Market Regulation, which limits its ability to enter into bilateral contracts. The association notes that private suppliers often charge higher prices compared to the cost of renewable energy production.

Lastly, EMA responds to EAC’s concerns about the development of energy storage systems, asserting that planning and development are managed by the Transmission System Operator (TSO). EMA supports the installation of storage systems to address energy surpluses and improve grid efficiency.

Source: CNA