Parliamentary committee discusses one year of the Competitive Electricity Market

The Cypriot Parliamentary Energy Committee held a session on Tuesday to review the first year of the Competitive Electricity Market (CEM). The discussion was initiated by AKEL MPs Andreas Pasiourtidis, Giannakis Gavriel, and Konstantinos Konstantinou, who sought to evaluate whether the market has successfully reduced electricity costs for final consumers.

During the session, it was reported that the market faces significant challenges hindering effective competition. Key issues identified include a limited number of active participants, systemic constraints within the electrical grid, the urgent need for enhanced energy storage infrastructure, and concerns regarding production curtailments from renewable energy sources (RES). The committee examined these technical and structural malfunctions to determine necessary corrective actions.

This review marks an initial assessment following the first year of the market's operation. While the ultimate goal remains the reduction of consumer prices, the current identified shortcomings highlight the complexity of the transition. Moving forward, the committee continues to monitor these issues as part of the broader effort to optimize market efficiency and ensure transparent operations for all stakeholders.