Distribution is one of the four CRAs that the EAC has incorporated with the aim of facilitating its operation while complying with the requirements of the Laws Regulating the Electricity Market of 2003 to 2017 and CERA's Regulatory Decision 04/2014. 

Distribution incorporates both the DAO (Distribution System Owner) and the DSO (Distribution System Operator), the latter having particular responsibilities, authority and obligations under Cypriot law while the European Directives give it the role of a neutral market facilitator and of a catalyst regarding the implementation of technology. A particular characteristic of its activity is that deals with the naturally monopolistic part of the EAC's business, creating a need for strict regulation in order to achieve the aims set by the European Union and the Republic of Cyprus.

Distribution System Operator Unit


The Distribution System Operator Unit is responsible for:


  • The development and operation of a reliable and efficient electricity distribution network

  • The development and maintenance of a meter repository and reliable recording and meter reading management (ring-fenced department)

  • Distribution Network operation (use and access)

  • Compliance with current legislation governing the control, connection and supply of electricity produced with renewables.

  • Definition of Terms & Conditions for access to and use of the Distribution Network and conformation of the Market Rules concerning the Distribution Network.

  • The timely provision of complete user information for an effective access to the Distribution Network.

The DSO is, moreover, a neutral market facilitator and a catalyst regarding the implementation of new technology such as, for example, smart grids, which shall provide effective services to all market participants (producers, suppliers, consumers and prosumers) via smart infrastructure and technologies, thus enabling transparent, impartial, fair and non-discriminatory access to the network.

Through its economically and technically efficient network infrastructure the DSO ensures:

  • A continuous, reliable and high-quality electricity supply at the lowest possible network user cost.

  • Economical and effective incorporation of distributed RES into the network, thereby contributing to energy electrification and carbon-free, sustainable economic growth.

  • A level of service that exceeds the expectations of all market players and network users.    

Distribution System Owner Unit (DAO)

The Distribution System Owner Unit (DAO) is responsible for the construction and maintenance of the Distribution Network and installation of meters for consumers and producers.

The overall obligations of the DAO include developing and maintaining an economical, efficient, coordinated, safe and reliable distribution system, which responds adequately to people's electricity requirements, while paying proper attention and care to the protection of the environment.

The DAO's responsibilities include the following:

  • Construction works for the expansion, reinforcement and maintenance of the Distribution Network and the Telecommunications Network.

  • Distribution Network planning, monitoring and maintenance works.

  • Keeping up with technological developments in electrical, electronic and telecommunications equipment for the Distribution Network.

  • Maintaining adequate stocks of materials and equipment to fulfil expansion, upgrading and/or maintenance requirements of the Distribution Network.

  • Calibration of meters by the Meter Repair & Testing Centre (MRTC).


The DAO main activities are:

Construction, Specifications & Technology

  • Expansion, reinforcement, upgrading and maintenance of the Distribution Network.

  • Installation of overhead power lines and underground cables to connect consumers to the electrical grid.

  • Installation of meters, laying/joining of cables, construction and commissioning of distribution substations.

  • Installation of Street Lighting in new developments or expansions of the network.

  • Disconnection and reconnection of consumers by order of the Distribution System Operator.

  • Detection, investigation and repair of faults.

  • Definition of Codes of Practice and Construction Practices as well as Distribution Network Technical and Procedures Manuals.

  • Review of technical specifications due to changes to International Standards or improved technology or changes to the use of specific materials.

  • Evaluation of tenders and management of contracts relating to the supply of materials, the provision of services and projects.

  • Carrying out material quality checks in accordance with European and International Standards.

  • Carrying out Type Tests at independent testing labs and routine/acceptance testing at manufacturers' plants.

  • Checking materials upon delivery to the EAC stores and network testing.

  • Safety regulations.

  • Supply Chain Management.

Network Maintenance & Support

  • Planning, monitoring and management of all Distribution Network maintenance works.

  • Carrying out annual and biennial transmission substation maintenance.

  • Planning and maintenance of the overhead Distribution Network, including pruning and inspection/repairs of earthing connections.

  • Writing of Maintenance Manuals and Maintenance Codes of Practice.

  • Evaluation of tenders and material, service and project contract management.

  • Safety regulations.

  • Fleet management.




  • Studies, specifications, telecommunications and electronic equipment management.

  • Design, installation, operation, maintenance, repair and upgrading of Electronics, Telecommunications, Fire detection/extinguishing and Protective Security systems.

  • Management of Strategic Alliances in Telecommunications.

  • Provision of technical support to other units of the EAC and Cyprus Transmission System Operator.

  • Management of Telecommunications and Electronic Equipment installation, operation and maintenance projects.

  • Faults investigation and repairs to telecommunications and electronic equipment.

  • Evaluation of tenders and material, service and project contract management.

  • Operation of the electronic equipment lab.


  • Preparation of tenders.

  • Publication of tenders for goods, services and projects.

  • Preparation, checking, approval and publication of tenders.

  • Appointment of Evaluation Committees or Evaluation and Negotiation Committees.

  • Preparation and checking of Comparative Price Tables.

  • Preparation of Evaluation Reports.

  • Approval by the decision-making body and awarding of contracts.

  • Preparation and publication of results.

  • Maintenance of purchase and contract Archives.

  • Preparation, checking, approval and issuing of Orders/Contracts.

  • Safeguarding of Tenders, Contracts and Evaluation Reports.

  • Contract Management.

  • Management of Letters of Guarantee and insurance policies.