The Cyprus Energy Regulatory Authority (CERA), decided on 1/8/2010 (Decision No. 01/2010) to allow the Electricity Authority of Cyprus (EAC) to recover its costs towards the Public Service Obligations (P.S.O.) and specifically the loss of revenue, as a result of introducing/applying the Domestic Special Tariff for Specific Categories of Vulnerable Customers (Code 08).
The recovery of costs was implemented by charging €0,00136 for every kWh consumed on all electricity bills. This charge is considered as a tariff element/parameter and subject to VAT.
After the recent study by the EAC, it has been confirmed that the accumulated income loss from the date of implementation of the specific tariff on 1/5/2006, until the imposition date of the PSO charge has been covered. For this reason, after a relevant suggestion from the EAC and approval from CERA (Decision No. 1479/2016), the PSO charge will decrease from €0,00136/ kWh to €0,00065/kWh from 1/5/2016.
More specifically, the revised P.S.O. charge will be applied to consumer accounts with a monthly meter readings which will start to be recorded by the end of May 2016 and consumers with bimonthly meter readings which will start to be recorded from 1st May 2016.