Filenews 24 February 2022
Amid controversies over increased energy prices and the cost of pollutants, the budget of the Electricity Authority of Cyprus (EAC) was unanimously approved by the Plenary.
AHK's budget for 2022 is in deficit and foresees expenses of €1,761,672,000 and revenues of €1,443,703,000.
EAC's expenses for 2022 are increased by 32.5% compared to the corresponding expenses for 2021 and relate to staff remuneration (€133,159,000), operating expenses (€85,525,000), fuel purchase, electricity purchase and Market Operator expenses (€1,103,740,000), taxation and financing costs (€13,000,000), capital expenditure (€194,648,000) and unforeseen expenses (€231,600,000).
EAC's revenues for 2022 mainly concern electricity sales (€1,063,606,000), charges to a Market Operator (€334,857,000), sale of desalinated water through the Vassilikos plant (€15,480,000), various other revenues from unregulated activities (€13,200,000), recovery of expenses from the Cyprus Transmission System Operator (€4,000,000) and interest receivable (€2,000,000).
DIKO MP Christiana Erotokritou said that the rulers have managed over the last 10 years to open a fan of fines and forced expensive prices for Cypriot consumers. As the Cypriot consumer said, as a result of the inaction and mishandling, they pay hundreds of euros in fines for the purchase of pollutants, while they ignored that the Dhekelia units could not operate, something they knew since 2010. She added that what the Government has achieved today is for Cyprus to be in the middle ages of energy, with the most outdated power generation system, while the bill is increasing because we are burning fuel oil, it is slow for natural gas to come and renewable energy sources (RES) to develop.
The President of the Movement of Ecologists Citizens' Cooperation Charalambos Theopemptou said that while these things were known for ten years, the choices of the respective governments have brought us here and especially in recent years when the prices of pollutants have greatly increased. He added that under the 'fit for 55' policy there will be an increase in fuel costs since there will be an increase based on greenhouse emissions.
ELAM MP Sotiris Ioannou said that the continuous increases have led citizens to a state of poverty and the tragic events in Ukraine will further increase the problem. He referred to power outages for citizens and called for immediate solutions to be found to reduce costs. He also said that it is immoral, obscene and criminal to subsidize free electricity to the Turkish Cypriots even for the occupying army while cutting off the electricity to vulnerable categories of citizens.
The General Secretary of AKEL, Stefanos Stefanou, spoke about a critical crossroads in energy issues, something that finds Cyprus completely unprepared for infrastructure issues for the arrival of natural gas and in relation to the exploitation of the "Aphrodite" deposit. He also said that Cyprus is at the bottom of the EU in renewables and blamed the "impasse regarding energy planning" on the present Government "which is committed to various things and does nothing". He added that the increase in the price of electricity in a large percentage is due to the penalties paid by the Republic of Cyprus from pollutants and said that this year we will pay 120-130 euros for this reason. At the same time, he criticized the mention of the law for the reduction of VAT on electricity by the President of the Republic and called on the government to reduce the VAT by 10% for the duration of this difficult period with energy prices.
Disy MP Onoufrios Koullas, said that the electricity bill today is a little lower than ten years ago. He added that Cyprus exceeded the 12% target for RES agreed by the Government of AKEL and managed to go to 17%. In relation to natural gas, he said that there was no easy way to come because of the prices that prevailed in the last decade, while the offers accepted by the Republic of Cyprus did not reduce the cost of energy except for the last one. He also said that natural gas will only reduce pollutants by 28%. What is needed, he said, is a targeted and prudent social policy, supporting those who really need it and taking into account public finances. He also referred to the plans announced by the Government for energy saving. He also noted that Cyprus will also face this crisis because it has the fiscal capacity.
In response, Mr. Stefanou referred to promises made by the Government in the energy sector which he did not implement. He further mentioned that the Government insists on auctions for RES and while in 2012 it had made a tender and received a price below 6 cents, for some reason it left this tender and proceeded to a tender, without the Minister of Energy being able to answer why.
Mr. Koullas replied that the Government of AKEL has committed Cyprus to very high prices for RES projects, while now the Government does not guarantee anyone any price, since the competitive electricity market will be opened.
