Filenews 19 August 2023 - by Chrysanthos Manoli
CERA imposed a fine of €50,000 on EAC Supply for the overcharges of thousands of electricity consumers in 2022, during the calculated consumption of premises, due to a problem in the operation of software installed by the Authority.
The problem with calculated overpricing was extensive and provoked strong reactions.
At that time, EAC had invited consumers who had received a bill marked Y (calculation) and considered that they had been asked to pay excessive amounts to contact it and file a complaint. It undertook to gradually return the amount of over-indebtedness to those affected, which was promoted in the following months.
However, CERA examined those calculated overcharges in order to identify whether EAC Supply violated regulations related to the submission, acceptance and examination of relevant complaints by electricity consumers and whether it responded in a timely manner to the need to refund those who were charged amounts that did not correspond to their actual consumption.
Specifically, at its meeting on August 1, 2023, CERA considered that EAC Supply violated some relevant regulations and imposed a fine of 50 thousand euros.
In particular, CERA's senior management decided that by increasing the issuance of calculated overpriced consumption bills during the period under review (June 2022 – September 2022), the Electricity Authority of Cyprus violated terms 3 and 4(a) of its Supply License, as it violated Regulation 13 of the Electricity Market Regulation (Performance Indicators) Regulations of 2005 and Supply Rules 7.1.2 and 7.1.4(15) of the Rules for Supply to Final Customers.
Among other things, it emerged from the investigation that EAC Supply had not accurately recorded all written complaints at the material time, due to the fact that the problem became widespread and became outside its exclusive control, which confirms the violation of Regulation 13.
In addition, CERA considered that:
– EAC Supply acted in violation of its prior obligation to compare the metering data received from the competent Network Operator with historical consumption data (if any), as well as the obligation to investigate significant changes in consumption.
– Applied the Procurement Rules in an isolated manner and not as a single and integral set of Rules, since it issued bills only on the basis of the provisions of the Supply Rule 7.1.5 and not on the basis of the Supply Rule 7.1.2.
– Shifted its responsibilities arising from Regulation 7.1.2 to the final customers, as it did not compare and investigate the significant changes in consumption in advance and before the issuance of the relevant invoices.
EAC Assurances
In determining the amount of the fine, CERA also took into account the following:
– The assurance of EAC Supply that it does not ignore the scope of its obligations regarding the Supply Rule 7.1.2 and all the Supply Rules and that for any controversial issues it considers to exist, it will send a relevant letter for clarification.
– The report of EAC Supply for the lack of ability to manage the problems that arose after the activation of the MDMS system and the report that the breach was not fraudulent.
– The EAC Procurement report for continuous monitoring and improvement of the criteria of Directive O-PK-35.
– EAC Commission's admission of its responsibility its report that corrections have been made to all accounts, either upon request or after issuing a subsequent bill and therefore there are no serious exclusions on accounts from September 2022 onwards, nor relevant customer complaints.
