The Cyprus Energy Regulatory Authority imposed a hefty fine of €500,000 on the Distribution System Operator of the Cyprus Electricity Authority, finding a violation of the Electricity Market Rules and identifying delays in the submission of meter data which, in certain settlement cycles, reached as many as 153 calendar days.
The CERA decision mandates the immediate payment of €500,000 as a one-time administrative fine and, in the event the violation continues, an additional €500 for each day.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
It should also be noted that, according to data from the Transmission System Operator, the longest recorded delay amounts to 153 days, while five previous CERA decisions on the same issue were issued prior to the imposition of the fine
A problem that had been “lingering” since 2025
The website cyprusenergy.news chronicles the case and explains that the half-million-euro fine did not come as a “bolt from the blue” to the authorities.
According to the Decision, the issue of metering data had already been a concern for the Minister of Energy, the CERA, the Cyprus Transmission System Operator (CTSO), and the DSD since September 2025, with a series of meetings held on September 1, 8, and 19. The DSD had committed at that time, through progress reports to the Ministry, that the problems would be resolved by October 1, 2025—a deadline that was ultimately not met.
- May 4, 2026: An internal memo from RAEK officially raises the issue
- May 6, 2026: CERA decision to investigate a possible prima facie violation
- May 8, 2026: A letter of notice of violation is served on the DSD, and the EAC Board of Directors is informed
- May 29 – June 4, 2026: The DSD responds and files its objections within the 30-day deadline
- July 3, 2026: CERA issues Decision 260/2026 imposing the fine
What the DSD argued in its defense
In its response letter, the DSD explicitly acknowledged that the records had not been submitted on time, attributing the responsibility, however, to a series of technical and organizational factors: malfunctions in systems such as HES Advance and HES Gridstream, performance issues with the MDMS due to the mass installation of smart meters (AMI Rollout), errors in net metering/net billing systems, and database issues. It also cited understaffing of the relevant unit, which currently operates with seven of the nine planned staff members and without an Assistant Director.
The Regulatory Authority characterized the violation as “moderately serious,” arguing that neither the suppliers’ customer base was affected nor was the market disrupted, that no benefit was derived, and that corrective measures are already underway. It asked CERA to take into account, as a sign of good faith, the cooperation it demonstrated throughout the investigation.
CERA rejects the notion of a “limited” problem
The Authority did not accept the TSO’s assessment that the issue was limited in scope. Data submitted by the Transmission System Operator showed that the delays did not involve a single incident, but rather consecutive settlement cycles, with extreme cases lasting up to 153 days. RAEK ruled that the timely submission of metering data is a fundamental prerequisite for the market’s operation, since monthly settlements and reconciliation settlements between participants are based on this data.
Regarding the technical and organizational problems cited by the DSD, the Authority acknowledged that they may indeed have affected its operation, but ruled that these are exclusively internal management issues, for which the Administrator itself bears responsibility—and which cannot be shifted to other market participants. The Decision notes that these difficulties could only be taken into account as a mitigating factor when determining the amount of the penalty, without, however, negating the finding of the violation.
RAEK’s Sixth Intervention on the Same Issue
Decision 260/2026 is not the Authority’s first action regarding this specific issue. CERA had already issued five previous decisions (452/2025, 454/2025, 41/2026, 107/2026, and 198/2026) in an effort to mitigate the effects of the delays, though the problem has not been fully resolved. Precisely because the Authority determined that a one-time fine alone is not sufficient to ensure immediate compliance, it decided to accompany the penalty with a daily fine of €500 for each day the violation continues after the Decision is served.
RAEK characterized the violation as “ongoing,” as the DSD’s obligation to submit data in a timely manner remains in effect until full compliance with the Electricity Market Rules is achieved. The Decision is published on the CERA website in the interest of full transparency for all interested parties.
Information based on the official CERA Decision No. 260/2026, dated July 3, 2026.
