It is not conceivable for the country's largest energy organization to be absent from the effort to transition to green energy, Vice Chairman of the Board of Directors of AEC, George Nikolettos, said on Monday during the debate in the Parliamentary Finance Committee on the agency's budget for 2023. He noted that AHK's share of the total 583 megawatts from renewable energy projects is "almost zero" and called on the Energy Regulatory Authority (RAEK) to approve the Agency's plan for this purpose.
Mr. Nikolettos also said that the announcement of strike measures by employees of AHK, does not agree with either the administration or the management of the Agency because they believe that these measures are inconvenient and hurt the society. The deputy chairman of the committee, Chrysis Pantelidis, who chaired the committee, said that the AHK's budget will be brought to the plenary for a vote on Friday, December 2.
Presenting the budget of AHK for 2023, he said the total expenditure is 2.74 billion and the total revenue, 2.42 billion.
He also said that AEC is facing "with particular difficulty very important challenges" which are expected to continue in view of the green electricity transition, and, referring to the actions of the Agency for the upgrading of the Agency and its services, he noted that it will be able to meet any challenge for the benefit of the consumer and the country, enhancing the growth path of the Cypriot economy.
Responding to MPs' questions regarding renewable energy sources (RES), he said that AHK currently has only one 3 megawatt park built, and is constructing another 12 megawatt park. In the total of 583 megawatts from renewable energy projects, he added, it is "almost at zero."
"We believe that in this great effort to transition to green energy, it is unthinkable that the country's largest energy organization is absent," he said."
He informed the members that the Ministry of Commerce has approved a plan, which they were asked for, and has sent it to the RAEC. "We are hoping and demanding its immediate approval to allow the Agency to invest in renewables which will be used in the generation mix to bring down the cost and the cost of pollutants for the consumer," he added.
He noted that their plan is for 500-600 megawatts and said that a tender they had called in 2019 to find blocks was frozen by the RAEC, and after representations by AHK, it was defrosted, but an interim regulatory decision was issued by the RAEC, stating that because they have a dominant position in generation, AHK should not be allowed to invest in RE.
He noted that they consider this "wrong." "We should be left, on equal terms," he said.
He also said that Cyprus, based on Eurostat data, is ranked 18th in the EU in terms of electricity accuracy, "even though we are an isolated state with no electricity interconnection, no other ways of generating energy."
Regarding greenhouse emissions, Nikolettos said in 2023 they are estimated to be 3.31 million tonnes, while for 2022 the shortfall was 2.96 million tonnes. He noted that the purchase prices of pollutants have also increased.
Asked how many people work at the Agency, he said the number of positions is increased to 143 compared to the 2022 budget. The AEC, he said, had submitted a request for 370 new positions in October 2021, and 146 have been approved by the Ministry of Finance. He noted that the approved positions are 2,329 and 2,162 people are currently serving, meaning, he added, they have about 7% vacancies, and that they have requested the creation of 370 new positions. A number, he said, that someone outside the AEC may consider to be high, but they did not arrive at this number "arbitrarily", but after a special study.
These positions are needed, he added, for the opening of the electricity market, for the implementation of regulatory decisions, for the green transition, the automation of the grid, the development of renewable energy projects and, in general, for the development and maintenance of transmission networks, the new generation unit, now under construction, the six-unit, capacity, 160 megawatts, and the needs for the operation of their stations.
"We hope that in the next budget that you will consider, the remaining 224 positions will be filled and covered," he added."
Nikolettos said that the cost of personnel in the current tariff of the consumer corresponds to 6.2%, while with the additional 146 positions requested by the EAC in the current budget, it will go to 6.5%, while, with the remaining 224 positions requested for the next budget, it will be at 6.8%.
On the social policy of AHK, he referred to the measures in place for large families and recipients of public assistance, and the EEO, and said that those included in these plans are 18,500 i.e. 57% of the beneficiaries which is about 32,000. He added that AHK is also running an information campaign on these measures.
On the pandemic, he said that AHK made discounts of about €53 million on consumers' bills.
On where AHK stands in the current competitive environment, he said that they see competition as an opportunity and an incentive to keep getting better. The organization, he added, with the specialized expertise and experience of its staff, is able to cope with competition, noting that, as of 1/1/2021, three new suppliers have joined, holding about 2% of the market.
Finally, Nikolettos said that they want to point out that when society is being tested with this high price of energy that is being formed, outside the control of AHK, tensions and pressures should not be caused in the world. "The announcement of the strike measures does not agree with either the management or the management of the Corporation because we believe that these measures are inconveniencing and hurting the society," he added.
In their comments, the members of the committee noted the role of AEC in the economy and the society of the country.
In his statement during the meeting, Mr Pantelidis expressed the view that AHK should be supported to the maximum extent possible, remain under the control of the public sector and continue to perform both its economic and social role. He asked if the EAC is at risk in terms of sustainability. He also noted that there is a wrong impression in society about the cost of staff that it is too high, while it is at 5%.
DISY MP Onoufrios Koulla noted that this is a very large budget for "a very important organisation in Cyprus". He said that AHK was "a healthy organisation" and that it was good that these jobs had been approved, while he congratulated the organisation because, he said, in times of crisis it had contributed for a few months to the reduction of electricity from its own reserves, but they felt that it was very important that its own reserves be invested mainly in the modernisation of the network. His party's position is clear, he noted, that they believe that AHK "must enter dynamically into RES."
DISY MP Savia Orphanidou noted that our fellow citizens are having a very difficult time due to the ongoing energy crisis and asked about AHK's social policy. She also said that AHK, "has a huge future ahead of it" and that they want a strong AHK to be able to support the fellow citizen.
In his own statement, AKEL MP Andreas Kavkalias said that his colleagues "in theory" want a strong AHK because, he said, in practice what the government is trying to do is to undermine the organisation in order to prepare the ground to hand it over to big private interests.
DIKO MP, Marinos Mousiuttas, said that both AHK and ATIK are organizations that have stood by the state over time and want to continue its work not only for the benefit of the employees, the Organization itself but also for the benefit of society.
DIPA MP Alekos Tryfonidis said that for his party, AHK is "one of the most important" pillars of support for the State and the economy. Their aim is to fully support it to perform this role and upgrade it, but also to perform a social role at the same time. He also said that the AEC's plans "are ambitious and we welcome them", but questions need to be answered as to why the AEC was not allowed to enter the renewable energy sector and how these hurdles are overcome. Referring to the recent strike by the AEC trade union movement, he said he also wants to see the Board step forward to demand the implementation of its decisions.
Stavros Papadouris of the Movement of Ecologists-Civic Cooperation, raised the issue of development, stating that the sooner a service is developed, the better results it will have and keep up with the issue of competition, for the benefit of the citizen, in terms of service delivery and cost. On the issue of sustainability of the Agency, he said that they see a budget increased, revenues reduced and understaffing issue, wondering how these three data are compatible, from a financial point of view.
Source: CNA
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