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Cyprus Legislation

The new legal framework for the electricity market consists of the following Laws, Regulations and Ministerial Orders:

  1. The Regulation of the Electricity Market Law of 2003 - N.122(I)/2003.
  2. The Law for the amendment of the Regulation of the Electricity Market Law of 2003 - N.239(I)/2004.
  3. The Cyprus Energy Regulatory Aythority Regulation (Employment, Promotion, Service and Disciplinary Control) - Κ.Δ.Π.528/2004.
  4. The Issue of Licenses Regulations of 2004 - Κ.Δ.Π.538/2004.
  5. The Licenses Record Regulations of 2004 - Κ.Δ.Π.466/2004.
  6. The Electricity Tariffs Procedures Regulations of 2004 - Κ.Δ.Π.472/2004.
  7. The Investigation Procedures Regulations of 2004 - Κ.Δ.Π.465/2004.
  8. The Administrative Penalties Regulations of 2004 - Κ.Δ.Π.468/2004.
  9. The Licensing Fees Regulations of 2004 - Κ.Δ.Π.467/2004.
  10. The Electriciy Amendment Law of 2004 - N.85(I)/2004.
  11. The Electricity Amendment Regulations of 2004 - Κ.Δ.Π.471/2004.
  12. The Development of Electricity Amendment Law of 2004 - N.81(I)/2004.
  13. The Development of Electricity Amendment Regulations of 2004 - Κ.Δ.Π.470/2004.
  14. The Eligible Customer Ministerial Order - Κ.Δ.Π.340/2004. 

The principle element of the framework is the Electricity Market Regulation Law of 2003, the Law. The basic provisions of the Law are:

  • the establishment of the Cyprus Energy Regulatory Authority (CERA)
  • the appointment of the Transmission System Owner and the Distribution System Owner
  • the establishment of the Transmission System Operator (TSO)
  • the segregation of customers into “Eligible Customers” and “Non Eligible Customers”
  • the liberalisation of Electrical Energy Production

Following the enactment of the Law. the following infrastructures were established:

  • Following the decision by the Council of Ministers, the Cyprus Energy Regulatory Authority (CERA), an independent authority responsible for the regulation of the electricity and gas market with exlusive rights to issue licenses for all activities relating to electricity and gas, to approve tariffs, to resolve disputes, to protect consumers and to secure a reliable electricity system.
  • Following a decision by the Council of Ministers, the Director of the Transmission System Operator was appointed, with exclusive duties to operate, synchronize and control the Transmission System with objective, non discriminatory criteria, to secure the proper maintenance and development of the electricity network and to arrange for the trading of electricity on a daily basis.        

 Exract from L.Demetriades site:

 

Main Provisions

The new Cyprus Electricity Law provides a framework of rules for the generation, transmission, distribution and supply of electricity throughout Cyprus. It introduces competition in the generation sector as well as in the supply for eligible customers. It also allows access to electricity networks; it ensures public service obligations and introduces effective and independent regulation. Under the new system generators of electricity are able to compete to supply electricity to larger consumers. The Government of Cyprus has decided on an approach that limits the short-term impact on the existing utility, and allows it to remain an integrated entity. This proposed approach is termed the Independent Transmission System Operator model. This model avoids the break up of EAC, and instead relies on the establishment of an independent Transmission System Operation (“TSO”) to ensure non-discriminatory access to the system for independent competitors.

Licensing of New Entrants


Independent generators are allowed to enter the industry in order to supply consumers according to an authorisation procedure. The objective is to ensure that new entrants can construct and operate generating plant on a “level playing field” basis in competition with EAC. A system of generation licences has been adopted for new generators, issued by the Regulator on a non-discriminatory basis. Thus, the Cyprus Electricity Law makes licensing obligatory for:

  • Transmission system ownership by EAC;
  • The TSO as the transmission system operator;
  • Distribution system ownership and operator; and
  • Supply to final customers, whether eligible or non-eligible.

Licence conditions vary from licence type to licence type, to reflect the type of business being carried out.

Other Applicable Laws

The Electricity Law, Cap. 170
The Law applies to the generation, transmission, transformation, distribution, sale, supply and use of energy throughout the Republic.

The Electricity Development Law, Cap. 171
The Law contains provisions as to the establishment and incorporation of the Electricity Authority of Cyprus (EAC), the officers of the Authority and the general functions and duties of EAC to supply electricity to users. Since its establishment in 1952 and until 2003, the Electricity Authority of Cyprus, a semi-Governmental organisation, had the monopoly in generation, transmission, distribution and supply of electricity power within the Republic of Cyprus.

Basic Electricity Regulations 1941-2001
These Regulations grant power to the Council of Ministers to issue a permit to generate transmit or supply electricity for any public or private purposes and contain provisions as to the production, transmission and distribution of electricity power within the Republic.

Electricity Development Law Regulations 1954-2000
These Regulations set up the EAC which is the only entity able to install and connect electricity, to inspect and place meters, to require charges for meter testing to cut off of supply by automatic equipment by EAC and to inspect installations.

Electricity Development Law – Schemes of Service Regulations 1986 to 1996

EAC Retirement and Benefit Scheme for EAC Employees and Dependants 1985 to 2001

EAC Disciplinary Regulations 1985 to 1995

Electricity Development Loans Regulations of 1976

General conditions for the supply of electrical power.

 

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