Power monopoly EAC to split into two on December 1

The accounts and operations units of the national power utility will start the separation on December 1, Andreas Poulikkas, chairman of the Cyprus Energy Regulatory Authority (CERA), said last week. The Cyprus Electricity Authority (EAC) is in the final stages of preparation for for the split, he added after presenting the company’s report for last year to president Nicos Anastasiades, as reported by Cyprus Mail.

The document includes results of Cyprus Transmission System Operator (TSO). Puolikkas added the final version of the energy market’s framework will be complete by the end of the year.

The government decided in January to unbundle EAC’s sectors into an entity for power generation and another one for transport and distribution in order to unlock EUR 10 billion from the island country’s bailout package, according to conditions set by creditors. The move was met with initial sharp opposition of trade unions. The split is necessary for the transposition of the European Union’s Third Energy Package into national legislation, part of measures within the Energy Union.

Poulikkas praised the future era the bloc’s overarching energy project and stated regulators produced the methodology of tariffs for the next five years including an 8% return on capital placed in production and 6% in the other segment, with measures to benefit consumers.