‘Forget 13 per cent’ hike on electricity bills (updated)

The chairman of the electricity authority (EAC) on Tuesday asked for consumers to stay patient a little longer while information regarding prices is being examined.

The forecasts that led to the request for a six per increase in tariffs for 2024 will be reviewed by the board, president Giorgos Petrou told the state broadcaster.

Meanwhile, he said the authority is seeking to reassure the public that the 13 per cent increase (for 2023), bandied about earlier, can be ignored.

“Forget about the 13 per cent, we are only looking at six per cent,” Petrou said, however dodging a question over the fact that the appeal for the request is ongoing and not looking likely to be withdrawn.

Petrou estimated that final announcements on the whole issue are expected to be made next week.

“Today we will ask management to present us with the evidence to justify the six per cent to begin work immediately in the finance committee to review the numbers,” he said.

Petrou noted that the board has decided to invest in upgrades to the Dhekelia power station, however, it now appears the upgrades – at least for the immediate future – are to be limited to only building two necessary combustion engines.

The two engines with a total capacity of 80 MW (40MW each) are estimated to be feasible at a cost of €60 million, rather than the over €100 million infrastructure upgrade initially envisioned, which was to have included storage.

Speaking on Monday, EAC spokeswoman Christina Papadopoulou, as well as Energy Minister George Papanastasiou, revealed that the EAC could seek to divest itself from Etyfa (the natural gas and LNG terminal project company), so as to recoup its €43 million tied up in shares, which could be sold to the state.

The amount falls slightly short of the €56-€60 million the EAC needs to build the combustion engines, Petrou said, but “a solution would be found”.

“The final figures will be different, a new request will be submitted to the regulatory authority (Cera),” he noted, hinting at the possibility that the price increase could end up lower than what has been proposed so far.

Later in the day, in parliament MPs grilled Petrou and other EAC officials over the organisation’s prior request for a 13 per cent hike on electricity bills.

Lawmakers asked the EAC to submit to them its audited accounts for 2023, to see whether that request was justified.

Under current rules – as determined by the energy regulator – the EAC is allowed a profit margin of up to 4.6 per cent.

Petrou assured MPs that if the EAC board – advised by their financial team – come to the conclusion that the new request for a 6 per cent rise is not necessary, the request will be withdrawn.

“If an increase is unnecessary, rest assured it will not be implemented,” he stated.

“But the EAC belongs to all of us, and we must ensure it can survive and continue to be of service to the people, while always taking into account that consumers are hard-pressed today.”

He added: “Give us a few more days [to decide].”