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Cyprus will request exemptions from EU measures to reduce energy demand and cap additional profits of energy companies

Cyprus will request to be exempted from measures concerning the mandatory reduction of energy demand during peak hours, as well as the imposition of a cap on the additional profits of energy companies that produce energy using lower-cost sources, during Friday’s Energy Council in Brussels, the Cyprus News Agency learns.

 

Government sources said that Cyprus is asking that provisions concerning the mandatory reduction of energy demand be implemented on a voluntary basis, and that, regarding the imposition of a cap on profits of companies that produce electricity using inframarginal technologies, that the Electricity Authority of Cyprus (AHK) should be exempted when it comes to producing electricity from oil but not exempted when it comes to profits from electricity produced from renewables.

 

The Cypriot position regarding the measure on mandatory reduction of energy demand during peak hours, is that the country does not yet have a competitive electricity market and that the mean with which peak hours can be determined have not been installed. Cyprus therefore requests that it be allowed to apply this measure when it becomes possible.

 

Regarding the measure of capping excess profits of companies that produce energy using inframarginal technologies (that is from sources with lower costs than natural gas which include renewable energy sources, nuclear energy, lignite and oil), Cyprus seeks assurances that the country will only be called on to implement it regarding energy production from renewables, and not regarding energy production from oil, which according to the government would endanger the viability of the Electricity Authority of Cyprus.

 

Source: Cyprus News Agency