28 Sep 2021 |
Adoption of new legislation for the Cyprus electricity market by the Parliament
On Thursday 23rd of September 2021, the Parliament of Cyprus voted for the enactment of new legislation for the Cyprus electricity market. This new legislation includes: a) The amendment of the Electricity Market Law 2021, b) the Establishment and Operation of the Cyprus Energy Regulatory Authority Law 2021 and c) the Natural Gas Market (Amendment) Law of 2021. These laws are essentially the most significant reforms to the electricity market after the entry of Cyprus into the European Union and they mark the commencement of a competitive market model.
Firstly, the amendments to the Electricity Market Law 2021 allow the introduction of a new licensing regime for production, transmission, distribution, supply, and storage of electricity. Moreover, this Law aims to give enhanced protection to consumers, to open up access to the electricity market and to ensure more affordable and transparent pricing. Besides, based on this new law, third parties can have access to the transmission and distribution infrastructure which aims to bring national legislation in line with the European acquis.
Secondly, the Establishment and Operation of the Cyprus Energy Regulatory Authority Law 2021 relates to the changes brought to the operation of the Cypriot Energy Regulatory Authority (“CERA”) and purports to harmonise national legislation with the European Union’s requirements. Finally, the amendments of the Natural Gas Market Law relate to amendments effected to the Natural Gas Market Law in order to comply with the provisions of the above amended legislation.
These new laws will bring substantial changes to the structure of the Cypriot electricity market: