Electricity Authority of Cyprus trade unions have been making misleading statements with the aim of misleading the public about the Association of Free Energy Market Enterprises concerning natural gas and the high price of electricity, said the Association.
The Association accuses EAC trade unions of “attacking” private energy companies in a statement that was released online and in newspapers and claimed they are not making any investments in the energy field.
In response to the statement published, the Association said that “the high electricity cost is due to the energy generation by EAC that is based entirely on liquid gas instead of including solar energy which is to the strategic advantage of Cyprus.”
They also said that the price of electricity is exclusively EAC’s decision.
The association argued that the fact that Natural Gas Public Company (DEFA) could not, to date, import natural gas that would lead to a slight reduction in the price of electricity, is due to the fact that EAC rejects any “middle ground solutions” with the use of some “secret formulas” that will lead instead to natural gas being more expensive. Also, in response to claims that many private companies have been given a license without moving on to investments, the Association said that the private sector is ready to immediately move on to investments in energy production given the right conditions.
The reasons that projects have not yet been implemented include the fact that the rules in the market are constantly being revised and investors are not certain of the conditions in order commence projects.
Other reasons include that applications for large Renewable Energy Sources (RES) projects within the framework of the competitive market are not examined by Cyprus Energy Regulatory Authority (CERA) and have now “frozen”, and that applications for new projects are being rejected by CERA for the last two years.
“Three licences were given to build power plants with fossil fuels; however they have not been given a license for supply. In a sense, they allow them to build the stations but they do not accept applications to allow them to sell their product to consumers.”
They added that EAC avoids giving any clear answers or policies regarding the cost of use of the network and thus also ensures that a monopoly persists, something which is against the rules of healthy competition.