The Directive 96/92/EEC of the European Parliament and Council of the 19th of December 1996 regarding common rules for the internal electricity market in the European Union has created the necessity for the Republic of Cyprus, to introduce the Regulation of the Electricity Market Law in 2003 N. 122(I)2003 for the purposes of harmonization with the “Directive”.

The CYPRUS ENERGY REGULATORY AUTHORITY (CERA) was established by Law N.122 (I) 2003.

CERA consists by three (3) Members appointed by the Council of Ministers of the Republic of Cyprus after consultation with the Parliamentary Committee on European Affairs.

CERA is the National Independent Energy Regulatory Authority of the Republic and is legally distinct and functionally independent of any other public or private entity. It takes autonomous decisions independently of any political organization and draws up separate budget forecasts, with budgetary autonomy and sufficient human and financial resources to carry out its tasks. CERA has the authority to appoint staff members of the CERA office who are deemed necessary to accomplish its duties.

CERA has a wide range of duties, responsibilities, competences and authorities. Regarding the way it manages its Sector, CERA is supervised by the President of the Republic and each year submits a  report based on its activities.

The structural changes in the energy markets within the Member States of the European Union, aiming to a common Single Market for Energy, created the need for the setting up of Regulators in the EU countries, and in other countries, such as the US or Eastern European countries, etc.

The operations of CERA are controlled by regulations, which are issued in accordance with the Directives of the Electricity Market Law.