Cyta calls for ‘equal terms’ as it eyes move into energy sector

The board of directors and management of Cyta on Friday issued a statement clarifying the organisation’s position on proposed amendments to the law governing its operation and its planned entry into the energy market.

“Equal regulatory framework with benefits for society and the country,” the statement said.

The statement was released following public discussion on modernising the legislation that defines the organisation’s mandate.

Cyta said the convergence of technology, energy and related services is already a European reality and stressed that it operates in a rapidly changing environment.

The organisation stated that it continuously monitors international trends and examines how its expertise and infrastructure can be utilised for the benefit of consumers and the country, always within its institutional framework.

According to Cyta, the legislation governing its operation has not been modernised for decades, unlike other public law organisations that have long enjoyed broader and more flexible institutional frameworks.

It pointed to the Electricity Authority of Cyprus (EAC) as an example, noting that the authority already grants third parties access to its telecommunications infrastructure and also operates a desalination unit.

“Under this prism, Cyta is asking for the obvious,” the announcement mentioned.

The organisation is seeking the same institutional capacity and flexibility within its own legislative framework so that it can operate on equal terms in an open and competitive market.

Cyta emphasised that private telecommunications providers already have the ability to operate in any sector they consider operationally critical.

The statement noted that in recent years many citizens have installed photovoltaic systems on their premises.

“Our strategy is clear and targeted at a specific segment of the market,” Cyta said.

Cyta said it intends to offer access to green energy from renewable energy sources to consumers who currently lack such options, particularly young couples who rent their homes, residents of apartment buildings and small businesses unable to install their own photovoltaic systems due to infrastructure limitations.

For Cyta, as a national infrastructure provider, “energy is no longer viewed merely as an operating cost but as a critical strategic factor for sustainability, resilience and competitiveness”.

“The future belongs to countries and organisations that understand in time that energy and telecommunications constitute a single strategic ecosystem in our era,” the board stated.

In this direction, Cyta plans to conclude agreements with producers of renewable energy while also moving, over time, towards self-production combined with storage.

It is estimated that the majority of the required energy will continue to be sourced from third parties.

Cyta expressed the view that its entry into the energy sector would encourage other producers and contribute to the further development of renewable energy units.

The organisation stressed that, should its governing law be amended, any new activity will take place in full compliance with the provisions of the Cyprus Energy Regulatory Authority.

It recalled that Cyprus already has an open and competitive energy market in which the Electricity Authority of Cyprus and private companies participate.

Cyta said it is “important to be able to pass on to customers the benefits arising from the use of renewable energy sources while simultaneously reducing the country’s environmental footprint and the cost of emissions”.

After assessing market needs, the organisation is examining the possibility of offering innovative packages combining energy, telecommunications services and technological solutions.

“It must be made clear that, if the bill to modernise Cyta’s institutional framework is rejected, the consequences will be extremely serious for its course and development,” the Board and Management said.

The statement added that it would be unfair, unequal and damaging if Cyta were unable to compete on equal terms in an open market while other telecommunications providers would be able to offer energy packages.

Cyta further stated that the decision to broaden its activities into the energy sector has the backing of all of the organisation’s trade unions, which recognise its importance for the future and sustainability of the organisation.

The organisation continued by stating that “it is a public benefit organisation operating with transparency and institutional responsibility”.

“Competition is determined solely by the regulatory framework and consumer needs, particularly where there is the prospect of measurable benefit for society and the country,” it concuded.