Legislations

ABIO POWER LTD (HE 407791) was granted the Electricity Supply License No. ΠΘ 17-2020 by the Cyprus Energy Regulatory Authority (CERA) on July 24, 2020, under the Electricity Market Regulation Laws of 2003-2018, which later the Regulation of the Electricity Market of 2021 was adopted. This license enables them to supply electricity to end consumers during the Transitional Electricity Market Regulation period. ABIO POWER LTD has fulfilled all the mandatory legal and regulatory requirements, and on July 25, 2022, the company signed the Contractual Framework of the Transitional Electricity Market Regulation with the TSOC and other relevant parties. This milestone has enabled ABIO POWER LTD to become one of the first independent suppliers operating in Cyprus' Competitive Electricity Market.

The Ministry of Energy, Commerce, and Industry is dedicated to formulating and executing policies across the energy, trade, industry, competition, and consumer protection sectors to optimise the utilisation of indigenous energy resources, ensure Cyprus' energy security, and promote the adoption of renewable energy sources and energy efficiency measures. Additionally, the Ministry strives to bolster entrepreneurship, competitiveness, and innovation while facilitating investment and fostering an improved business environment. It plays a pivotal role in transposing European Directives into National Legislation, oversees the management of the Renewable Energy Sources (RES) and Energy Saving (ES) Fund, and implements relevant support plans. Moreover, in collaboration with CERA, the Ministry approves the regulatory framework governing market operations and issues decrees pertinent to market functioning, ensuring adequate consumer protection and fostering fair competition. For more information, visit the Ministry’s website at: https://meci.gov.cy/en/

The Cyprus Energy Regulatory Authority (CERA) is the national independent regulatory authority of Cyprus, responsible for the regulatory control of the internal electricity and gas market in line with EU Directives 2019/944 and 2009/73/EC. CERA was initially established by the Law on the Regulation of the Electricity Market of 2003 (Law 122(I)2003), which was repealed by the Law on the Regulation of the Electricity Market of 2021 (Law 130(I)/2021), CERA operates autonomously, independent of any political organisation or other entities. Governed by a top management team of three members appointed by the Council of Ministers, CERA’s staff act independently of any market interest and do not seek or receive instructions from any government authority or other entity. CERA is accountable to the President of the Republic, to whom it submits an annual activity report. Its operation and decision-making process are regulated by regulations adopted in accordance with the Law on the Establishment and Operation of the Energy Regulatory Authority of 2021. For more information, visit the CERA’s website at: https://www.cera.org.cy/

The Cyprus Transmission System Operator (TSOC) plays a crucial role in the country’s energy sector. Its primary responsibilities include the operation of the electric power transmission system. This involves managing the high-voltage power lines used for the transmission of electricity from a plant to a substation or another plant or between substations. In addition, the TSOC is also responsible for the objective management of electricity trading in a competitive environment. This means ensuring that all electricity producers and suppliers have access to the transmission network. Furthermore, the TSOC supports and promotes electricity production from renewable energy sources. This aligns with global efforts towards sustainable energy and reducing the impact of energy production on the environment. In summary, the TSOC’s roles and responsibilities span operating and managing the transmission system, facilitating fair electricity trading, and promoting renewable energy sources. For more information, visit the TSOC’s website at: https://tsoc.org.cy/

The primary responsibilities of the Distribution System Operator (DSO) Division include the development and operation of a reliable and efficient electricity distribution network, the management of metering systems and accurate recording of meter readings, compliance with legislation regarding renewable energy sources, formulation of access conditions and market rules, and provision of comprehensive information to network users. Additionally, the DSO serves as a neutral facilitator for market activities and promotes the application of new technologies, such as smart grids, to ensure transparent and impartial access to the network for all market participants. Through its infrastructure, the DSO guarantees continuous, reliable, and high-quality electricity supply at the lowest possible cost, integrates renewable energy sources efficiently and maintains a high standard of service for all stakeholders. In performing its duties, the DSO facilitates supplier changes for consumers and maintains a registry of meters for suppliers. For more information, visit the DSO’s website at: https://www.eac.com.cy/EN/EAC/Operations/Pages/Distribution.aspx

The Transmission System Owner plays a central role in the EAC's electricity infrastructure, serving as the entity responsible for the transmission network. This network acts as the vital link connecting power stations to the distribution network. As outlined in the Transmission and Distribution Rules, transmission originates from the busbars within transmission substations situated in power stations. Through the use of 132 kV or 66 kV overhead power lines or underground cables, power is transmitted to 11kV or 22 kV medium voltage switchgear in other transmission substations, typically located within load centres. Designated as the Transmission System Owner, the EAC is a contractual party to the Contractual Framework Agreement of the Electricity Market Rules. Under this agreement, the EAC is obligated to ensure the availability of the transmission system to all participants within the competitive electricity market. For more information, visit the Transmission System Owner’s website at: https://www.eac.com.cy/EN/EAC/Operations/Pages/Transmission.aspx

The Distribution System Owner Unit (DAO), part of the Electricity Authority of Cyprus (EAC), responsible for the Distribution System, has several significant responsibilities aimed at developing an economical, efficient, coordinated, secure, and reliable distribution network. These responsibilities include overseeing the construction, expansion, reinforcement, and maintenance of the Distribution and Telecommunications Networks. The DAO is also tasked with planning, monitoring, and conducting maintenance activities for the Distribution Network, ensuring it meets all reasonable electricity demands while demonstrating care and attention to environmental protection. Additionally, the DAO keeps pace with technological advancements in electrical, electronic, and telecommunications equipment for the Distribution Network and maintains adequate stocks of materials and equipment to fulfil expansion, upgrading, and maintenance requirements. Furthermore, as a contracting party to the Contractual Framework of Electricity Market Rules, the DAO is obligated to provide access to the Distribution System for use by all participants in the Competitive Market. For more information, visit the DAO’s website at: https://www.eac.com.cy/EN/EAC/Operations/Pages/Distribution.aspx