Bill allowing Cyta to sell electricity to be sent to plenum

An amendment allowing Cyta to provide new services, including energy, will be sent to plenum, following discussions on Monday at the House finance committee.

A representative of the legal service said the Constitution did not restrict the scope of activities of Cyta and the electricity authority (EAC), however he pointed out that issues of competition may arise.

State aid commissioner Stella Michaelidou said the involvement of Cyta in the energy sector should be examined regarding its viability, while a representative of the Cyprus energy regulative authority (Raek) said any activity in the sector should comply with the market framework.

A finance ministry representative said Cyta’s involvement might contribute to covering the needs of vulnerable groups, especially where photovoltaics could not be installed.

The energy ministry representative said a viable and competitive market was a strategic aim and that any initiative that would benefit households was in the right direction.

Committee chairwoman and Diko MP Christina Erotokritou said common ground could be found through cooperation.

Present at the meeting were the management of Cyta and the EAC, along with trade union representatives from both organisations.

Cyta chairwoman Maria Tsiakka said the organisation was profitable and that telecommunications provides around the world were also involved in the energy sector.

On the other hand, EAC board chairman Giorgos Petrou said this was not a simple feat and that the two organisations should have discussed the issue in depth and that losing customers would burden the remaining consumers.

EAC general director Adonis Yiasemides said Cyta’s involvement would cause an institutional reorganisation and the need for a clear division of roles would arise.

The trade unions also expressed their views. Those from Cyta said enhancing competitiveness should not weaken public organisations to the benefit of private companies, while EAC trade unionists spoke of a lack of strategy.

Discussions towards the end were heated, with trade unionists disagreeing on the course the bill should take and MPs telling the EAC trade unionists that they “didn’t make such a fuss” when private companies were interested in entering the energy sector.

Erotokritou intervened, saying the exchange was not productive and that the bill would be sent to plenum.