The Ministry of Energy, Trade and Industry (MoETI) wishes to clarify that the Government does not intend in the near future to proceed with the imposition of a RES and EE fee on road transport, as the Cyprus Consumers Association (CCA) claims, misinforming public opinion.
The provision invoked by the CFC in its statement, even calling for its withdrawal from the bill before the Parliament, which upgrades the operation of the Renewable Energy Sources and Energy Saving Fund (RES and RES-E Fund), has always existed in the legislation regulating the operation of the Fund. Therefore, it is not a new provision, but a transfer of an existing provision from one law to another.
Specifically, subsection (1) of Article 10 of the Promotion and Encouragement of the Use of Renewable Energy Sources Act of 2013 (112(I)/2013), as currently in force, sets out the resources of the RES and RES-E Fund. Paragraph (b) provides for the imposition and collection of an excise duty on energy products other than electricity, such as conventional fuels.
As of 2013 to date, the Government has not proceeded with the imposition of such a tax on motor/heating fuels, even though the imposition of high taxes on liquid fuels is now a popular practice implemented by almost all EU Member States as part of the green tax reform to discourage or reduce the use of conventional fuels and assist the transition to a green economy.
The Ministry of Energy stresses that there is no intention to implement this provision within the next year, given the international phenomenon of price increases in the energy market which also affects Cypriot consumers. On the contrary, the Government and the Ministry of Energy are vigilant and in the interest of Cypriot citizens, they have taken a number of compensatory measures to address the increases in both electricity and fuel, such as the reduction of the VAT rate and excise duty, while additional mechanisms have been adopted to control the market from obscenity.
The will of the Ministry of Electricity to protect consumers is also demonstrated by the effort to reduce the amount of the consumption tax and, consequently, electricity bills, which will occur in the first years of the implementation of the new methodology introduced by the proposed legislation. It is for this reason that the Ministry of Electricity asks the Parliament to promote the legislation for enactment as soon as possible so that consumers can benefit.
With regard to the request of the CCC for the participation of Consumer Associations in the Management Committee of the RES and EE Fund, citing transparency reasons, we note that the six-member Management Committee of the Fund, composed of the Directors General or their representatives, of the Ministry of Energy, the Ministry of Finance, the General Directorate of Development, the Accountant General of the Republic of Cyprus, the Director of Energy of the Ministry of Energy and a representative of the EIF, takes decisions and acts in full transparency in the interest of the citizens.
The MoEEB recommends that the CSC, before making any announcements which misinform the public, should first obtain secure information from the Ministry.
(GA)
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