Operational Unbundling

The EAC is carrying out Operational Unbundling in compliance with the Regulatory Decision of the Cyprus Energy Regulatory Authority (CERA), which implements the corresponding provisions of the EU.

Through Operational Unbundling, the four Core Regulated Activities – the monopoly activities of Transmission and Distribution and the competitive activities of Generation and Supply – are separate operations within the EAC. Operational Unbundling ensures that the EAC does not exploit its dominant position and that equal opportunities are offered to private sector producers or suppliers.

For the implementation of Operational Unbundling, the EAC has created independent Units for its Core Regulated Activities in such a way as to guarantee their reliable and independent operation.

Common Services remain under the EAC’s General Management, thereby ensuring that Operational Unbundling does not increase the Authority’s operating costs (e.g. Personnel Department, Legal Services, Public Relations & IT).

Furthermore, a Non-Regulated Activities Unit has been set up to deal with additional activities, such as services to third parties, renewable energy sources, desalination, etc.

Operational Unbundling has strengthened and documented the transparent and independent operation of the Organisation’s activities, thereby implementing the requirements of the relevant European Directive in a way that is compatible with the special circumstances prevailing in the small and isolated electricity system of Cyprus.

At present, Operational Unbundling does not substantially affect the relationship between the EAC and its customers. However, it has been clarified that the term “consumer” refers to the commercial relationship between the EAC/ Supply and its customers, while “network user” refers to the technical aspect of connecting to the network (Transmission or Distribution). The term “network user” refers to either consumers or electricity producers.

At present, all consumers are EAC customers. With the operation of the liberalised Electricity Market and the activities of independent suppliers, consumers will be in a position to choose their supplier.