The Electricity Authority (EAC) has decided not to insist on a 7.5 per cent increase rate on electricity bills and to request that the adjustment be limited to just 3 per cent, it announced on Wednesday.

The decision, it said, was taken “fully understanding the financial situation of customers and the need to support the broader economy”.

The EAC board of directors said revenue was “fully regulated”.

It said that “every year, the EAC, in accordance with the approved methodology of the Cyprus Energy Regulatory Authority (CERA), submits to CERA its final accounts, audited and fully documented, for its regulated activities.”

“Based on an approved methodology, CERA allows the organisation to have the minimum necessary cost recovery, in order to ensure its sustainable operation and the ability to implement its development programme,” the EAC said.

It added that, “in the ever-changing and challenging energy sector, it is imperative for the EAC to have a continuous development programme in place.”

This includes maintenance, modernisation, development and upgrading of infrastructure and facilities, as well as the creation of new production units and the installation of storage systems.

“This programme requires significant capital on an ongoing basis,” it said.

It explained that “the goal is the uninterrupted and uninterrupted production, transmission, distribution and supply of electricity at quality levels that are equal to and/or exceed those of many other electricity companies worldwide.”

The EAC added that, in full cooperation with the independent Transmission System Operator (TSO) and CERA, it has taken all necessary actions that fall within its competence for the operation of the competitive electricity market.

Its board of directors, the EAC added, “has conducted all necessary consultations with the competent institutional bodies, with the aim of alleviating any burdens on consumers.”

It was also taking all necessary actions to ensure its role as a “stable and reliable energy pillar”, it said.

The EAC assured it remained at the disposal of the House, CERA and all institutions for full and documented information, however it expects that “public statements will be based on objective and verified data, in order to avoid creating unjustified concerns or misleading impressions among the public.”