Concerns over photovoltaic compensation scheme
Trade unions within the Electricity Authority of Cyprus (EAC) have raised strong concerns over government policies affecting electricity pricing in Cyprus, particularly regarding compensation for surplus energy from photovoltaic systems.
In a joint statement, the unions said the issue had already been discussed in the previous House of Representatives, noting that the President had previously referred related legislation back, citing constitutional concerns over compensation mechanisms.
Claims of financial pressure on EAC
The unions argue that despite the legal objections, the Ministry of Energy instructed EAC’s supply division to proceed with compensation for excess photovoltaic production.
They question whether the same constitutional issues apply to the current arrangements and warn that the policy could create financial strain for EAC Supply.
According to the statement, EAC’s supply arm operates without profit and would be forced to pass additional costs onto consumers, potentially increasing electricity pricing for households in Cyprus without photovoltaic systems.
Warning of higher consumer bills
The unions warned that the majority of consumers who do not have solar installations could ultimately face higher electricity costs as a result of the policy.
They also raised concerns about broader energy initiatives, including the “Photovoltaics for All” scheme and EAC’s proposals for shared solar and storage projects.
Criticism of wider energy policy decisions
The unions further claimed that EAC has been required to make significant investments, including in natural gas infrastructure and electricity interconnection projects, which remain inactive.
They argued that repeated policy interventions have limited the authority’s ability to recover costs, warning of what they described as financial pressure on the organisation.
The statement also suggests that discussions on structural changes within EAC are ongoing, with unions vowing to return to the issue after the completion of electoral procedures.
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