Nicosia, Cyprus. The Cyprus Telecommunications Authority (CyTA) received approval on Thursday to expand into the energy sector, specifically renewables, following a majority vote in the House. The move left open questions about whether CyTA will compete or collude with the Electricity Authority in a market dominated until now by the latter.
Bill approval and scope
By a majority vote, the House approved a bill allowing CyTA to expand its activities into the energy sector, specifically renewables. An amendment tabled by Disy, which also passed, states that CyTA may not engage in energy production from conventional fuels.
Amendments and voting positions
A number of amendments tabled by Akel, which sought to introduce safeguards, were defeated, and the party voted against the legislation as a whole. The debate prior to the vote featured intense disagreement.
Concerns over competition
MP Andreas Themistocleous said passage of the legislation broadens the activities of semi-governmental organisations into areas where the private sector is active, calling it an adverse development. He warned of a “distortion of competition” and said state-run entities should not compete with private enterprise.
Criticism of the current market
Independent MP Costis Efstathiou said the energy market as it stands amounts to an oligopoly. He criticised the EAC for “abusive practices” and for a general disregard of consumers.
Akel’s position on market conditions and permits
Akel’s Stefanos Stefanou said the electricity market is already competitive and that the EAC’s dominant position should not be seen as “misconduct”. He said the EAC has been largely left out of the renewables sector and noted that some renewables permits were granted to private entrepreneurs who built nothing, held onto the permits, and then traded them at multiple times the initial cost.
How do you think CyTA’s entry into renewables will affect competition in Cyprus’ energy sector?