Filenews 7 February 2021 - by Theano Thiopoulou
AHK made a total of 13,440 outages to electrify its customers for non-payment of electricity in 2020, but there are no data on the number of household members affected. In the answers sent by the Electricity Authority to questions from Members of the Finance Committee, on the occasion of the debate on its budget for 2021, which took place on 1 February, it is noted, inter alia, that "the Agency stands with all its might on the side of society in this cruel ordeal and the economic difficulties faced by a number of our fellow human beings. The service officers are at the disposal of our customers and each case is considered with the utmost social sensitivity, while also taking into account the need for equal treatment of all consumers". We recall that for some months in the first phase of the pandemic, EAC avoided disconnections of households and other customers, due to the regulatory situation that had been caused and the strict restrictions on movements.
When asked whether EAC could offer electricity packages to households and businesses, the Authority points out that packages similar to those offered in telecommunications cannot be offered for electricity because costing is based on the amount of energy consumed by the customer. It justifies the reply by stating that the costing includes a variable fuel cost, in the form of a clause, which changes every month. It was also mentioned that for the purpose of better planning, household customers are offered a plan of equal monthly instalments. The fixed monthly instalment is based on each customer's consumption history, and is adjusted at the end of each 12-month period.
One of the MPs' questions was whether, because of the pandemic, there is any EAC planning/recommendation to repeat the 10% reduction in electricity, as was the case in 2020. The Authority clarifies that its move in this unprecedented test to offer a 10% reduction in the tariffs of all its customers for a period of 6 months in 2020 corresponds to an amount of €32 million, an amount which EAC has raised from its reserves, effectively returning part of its surpluses back to the society and economy of Cyprus. The Electricity Authority also points out that the 2021 budget is in deficit of €161m. and this deficit will be covered by existing cash and borrowing of €30 million. In addition, it is noted that EAC has a major and important development programme to implement over the next three years, amounting to €0.7 billion. Therefore, a possible resumption of the 10% reduction will adversely affect EAC's cash reserves and its ability to implement its growth programme.
