According to the Regulations of the Electricity Market Law, all tariffs and charges for the services provided by the Law reflect the cost of providing these services, and the Cyprus Energy Regulatory Authority (CERA) sets out the principles and procedures for setting tariffs and connection chargers and for the use of the transmission and distribution system. 
 
On 19/06/2015 the Regulatory Decision 02/2015 Regulatory Practice Statement and Methodology of Electricity Tariffs was published, KDP. 208/2015. This regulatory decision can be found in the Legislation section. The aim of revising the Regulatory Practice Statement and Methodology of Electricity Tariffs is to harmonize it with the best / optimal practices in Europe, and the most rational way of calculating allowable revenues and, therefore, electricity market pricing. The purpose of the Regulatory Practice Statement and Methodology of Electricity Tariffs is to regulate: 
 
  • how CERA will determine the permitted revenue for each regulated activity, and 
  • how to set the regulated pricings. 
The primary objectives of the regulation of pricing are to maximize the long-term competitiveness of the Cypriot economy, to protect consumer interests in the short and long term against monopolistic prices, to serve public benefit obligations, to secure energy supplies and to promote energy efficient and quality services provided by licensees. Tariffs are determined on the basis of a methodical and consistent application of the principles contained in the methodology and the price proposals and decisions are based on substantiated data and formed after thorough stakeholder consultation. 
 
EAC, with instructions from CERA, is in the process of revising its pricing on the basis of the revised Methodology of Electricity Tariffs, aiming at the introduction of new tariffs in March 2017.