In recognition of the problems and distortions in the Competitive Electricity Market, which the Association of Electricity Suppliers’ Representatives (SEPIE) has been warning about for months, the Cyprus Energy Regulatory Authority has imposed an administrative fine of €500,000 on the EAC’s Distribution System Operator.

In a statement, SEPIE “welcomes the recent institutional developments that demonstrate that the problems and distortions of the Competitive Electricity Market are now being recognized with greater clarity and addressed through substantive dialogue and institutional interventions.”

SEE ALSO: €500,000 Fine Imposed on the Distribution System Operator: Failed to Submit Metering Data to the Electricity Market for 153 Days

As he explains, “the decision by the Cyprus Energy Regulatory Authority (RAEK) to impose an administrative fine on the Distribution System Operator for issues related to metering data is a significant development.”

“It confirms that the concerns raised by SEPHIE and the supply companies from the early stages of the Competitive Market’s operation were not merely theoretical, but rather related to actual malfunctions with substantial implications for the market’s operation. For a long time, supply companies were required to plan their energy purchases, manage their commercial risk, and bill their customers without timely and reliable metering data. This situation has created significant financial burdens, increased uncertainty, and, in some cases, even raised sustainability concerns for companies operating in the market.”

The Association emphasizes that “recognizing the problems is not an end in itself” but “is a necessary prerequisite for resolving them.”

“For this reason, SEPIE views the high-level workshop organized by the Federation of Employers and Industrialists (OEB), with the participation of the Ministry of Energy, the Cyprus Energy Regulatory Authority (RAEK), the Cyprus Transmission System Operator, the Distribution System Operator, the Cyprus Electricity Authority (AHK), electricity generation and supply companies, as well as other relevant stakeholders. The discussion among stakeholders regarding the challenges, market distortions, and necessary reforms represents an important step toward the further maturation of the Competitive Electricity Market and the development of solutions that will strengthencompetition for the benefit of consumers. We hope that all stakeholders, without exception, will participate constructively in these discussions.”

SEPIE adds that it has participated and will continue to participate actively and in an informed manner in every institutional process aimed at improving the functioning of the electricity market.

“Our mission is not to highlight problems for the sake of confrontation, but to put forward realistic proposals that will contribute to the creation of a competitive, transparent, and efficient market, for the benefit of consumers, the economy, and the country’s energy transition. The Competitive Electricity Market is a significant reform for Cyprus. However, for it to deliver the benefits we all expect, it requires continuous improvement of procedures, the timely addressing of distortions, and sincere cooperation among all stakeholders.”

In the statement, it explains that “it will continue to serve as a responsible and institutional partner, submitting well-documented proposals and actively contributing to the creation of a competitive, transparent, and efficient electricity market, for the benefit of consumers and Cyprus’s energy future.”