Filenews 8 June 2022 - by Chrysanthos Manolis
The Chairman of the Energy Committee, Kyriakos Hatzigiannis, said yesterday publicly that the date of the launch of the competitive electricity market, which after several postponements was set for next October, is irrevocable.
Apparently, Mr. Hatzigiannis did not read the four-page letter submitted yesterday to his committee by the Executive Director of the Cyprus Transmission System Operator, Stavros Stavrinos, or did not hear or understand what the same official said orally. Because Mr Stavrinos, through the letter and through what he explained to the Members during the closed doors (why is that?) discussion of this hugely important issue was clear that the date for the start of operation of the competitive electricity market should be changed (i.e. extended), because the Operator's service (TSO) is not ready to coordinate the competitive market, for specific reasons that Mr. Stavrinos analyzed in writing and orally.
Due to the fact that it was chosen to discuss such a serious issue (which also touches on the level of electricity prices in the coming period) to take place behind closed doors, there is not sufficient and valid information as to what exactly was mentioned yesterday by the Minister of Energy, other executives of the state machine and the MPs, except Kostas Kostas, Limassol MP, who in statements after the meeting said that the concerns of his party (AKEL) about new delays and new problems in the operation of competition for the benefit of consumers are confirmed. Costas' statements are in stark contrast to Hatzigiannis' statements, hence the reason for the further investigation of the matter by Phileleftheros.
"F" holds the four-page memorandum submitted to the Energy Committee by the executive director of the TSO, Stavros Stavrinos, through which it emerges that another postponement in the opening of the competitive energy market is probably inevitable. That is what Mr Stavrinos is asking for. It should be noted that in yesterday's session, based on what became known, the publicly expressed concerns of energy sector players, among them EAC executives, as well as EAC's unions, were not discussed, arguing that the operation of this competitive market model will lead to over-profits of RES producers and price increases for domestic electricity consumers and small and medium-sized enterprises.
The Stavrinou memorandum is quite detailed, but due to space we will be satisfied with its conclusions and suggestions. Mr. Stavrinos states: "Despite the significant progress that has been made in the installation and regulation of the management systems of the competitive electricity market, I am of the opinion that all the above concerns (regarding the readiness of the market) and concerns, which are reasonably created, should be taken into account when setting a final date for the commencement of the commercial operation of the competitive electricity market".
And adds with full clarity Mr. Stavrinos, who should be noted that he is not responsible for the previous postponements of the operation of the competition, because he was not in the specific position when they were deemed necessary due to errors and omissions: "The delay observed for the completion of the procedures of independence (s.s. from the EAC) and staffing of the TSO, is an inhibiting factor in the whole effort and poses serious risks. In particular, the fact that the post of market operator remains vacant and that there are no shift staff to take over the functioning of the competitive electricity market are very, very serious issues that cannot be overlooked. Moreover, it cannot be overlooked that according to the legal advisors of the TSO, there are likely to be legal problems from the non-completion of the procedures for the independence of the TSO, with the risk of calling into question many of its actions and decisions".
In the next paragraph, Mr. Stavrinos stresses: "Apart from the above, the very difficult and unprecedented conditions prevailing in the global energy field are not suitable to start a market that will be in its infancy, since the negative consequences that entail the global energy uncertainty (s.s. obviously means the skyrocketing of prices) and that are likely to be observed in our country, may be attributed to a failure of the whole project."
He concludes with the following: "Based on the above and with knowledge of the smooth operation of the market, for the benefit of the consumer and society, it is considered wiser to collectively and holistically review the plan for the commencement and operation of the commercial operation of the competitive market".
