The establishment of the Cyprus TSO was the result of the state decision to harmonize with Directive 96/92 / EC of the European Parliament and of the Council of 19th December 1996 concerning common rules for the internal market in electricity and the setting of the Electricity Market in Cyprus.

 

 

Article 62 of the Law defines the following exclusive responsibilities for the Cyprus Transmission System Operator:

• The operation of an efficient, coordinated, safe, reliable and economically viable transmission system

• Ensuring the development and maintenance of an insured, reliable, cost-effective and efficient transmission system

• Investigating and promoting any prospects for the interconnection of the transmission system with other systems following an order from the Minister of Trade, Industry and Tourism

• Ensuring the availability of all production services and other services necessary to carry out its responsibilities as set out in paragraph (1)

• The operation of a system of load distribution and use of the transmission system, with objective, non-discriminatory, economic and technical criteria, in accordance with:

  • the conditions contained in the permit granted

  • the Transmission and Distribution Rules

  • the Electricity Market Rules

• The operation and management of electricity trading in accordance with the above mentioned Electricity Market Rules

• The charge for the connection and use of the transmission system

• The proposal of terms and the conclusion of protocols or contracts for the connection with the transmission system and for its use, with all those who use and seek to use the transmission system.

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Within the framework of its responsibilities, the CyTSO prepares and submits to CERA for approval the Transmission and Distribution Rules.

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The Market Operator functions as part of the CyTSO. It prepares and submits the Electricity Market  Rules.

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The Market Operator maintains Participant Registries and operates the Market Management System to which all bilateral contracts in the Forward  Market, the Day Ahead Market and the Balancing Market are submitted.

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The Market Operator manages the Ancillary Services Market and is responsible for the Settlement  of the Participants' transactions.

Until the operation of the final Market, the Market Operator manages the Transitional Electricity Market.

 

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The responsibilities of the Distribution System Operator Division  are:

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

• The development and maintenance of a Meters Register and the reliable recording and management of meter readings (enclosed section)

• The management (use and access) of the distribution network

• Compliance with current legislation on the control, connection and distribution of electricity from renewable sources

• The formulation of the conditions of access and use of the distribution network and the Market Rules related to the distribution network

• The valid and complete information of the users for the effective access to the distribution network.

 

In addition the DSO is  the neutral facilitator ( facilitator ) market catalyst and application of new technologies, such as smart grids, which through its infrastructure serves effectively all market participants (producers, suppliers, and consumers, thus giving a transparent, impartial, fair and non-discriminatory access to the network.
 

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

• The continuous, reliable and quality supply of electricity at the lowest possible cost in the use of the network.

• The economic and efficient integration of the distributed  RES in the network, contributing to the electrification of energy and the achievement of carbon free sustainable economic growth,.

• The high standard of service  of all market players and network users.

                       

In the context of the management and operation of the enclosed section, the DSO manages the Change of Consumer Supplier and for this purpose maintains Meter Registers for  Suppliers.

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The same Section manages the meter readings and supplies the Participants with the meter reading data for all meters.

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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.

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​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.

CERA proposes and approves together with the Minister the regulatory framework for the operation of the Market. It supervises and regulates the Market and may impose penalties on defaulting Participants.

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It supervises the Market Operator as well as the Dominant Participant for the establishment of  conditions of fair competition.

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The mission of the Ministry of Energy, Trade and Industry is to design and implement policies in the fields of energy, trade, industry, competition and consumer protection in order to rationalize the use of indigenous energy resources, to ensure the energy supply of Cyprus and the promotion of renewable energy sources and energy savings, strengthening entrepreneurship, competitiveness and innovation, stimulating investment, improving the business environment and effective protection of consumers and competition..​The Ministry is the body responsible for transposing the European Directives into National Legislation. It is responsible for the management of the RES and ES Fund and for all relevant Support Plans for the Participants.​The Minister approves together with CERA the regulatory framework for the operation of the Market and issues relevant decrees concerning the operation of the Market.​​

 

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The Transmission Network is the backbone of the EAC's electricity system, connecting the Power Stations to the Distribution Network.

According to the Transmission and Distribution Rules, Transmission begins from the busbars of the Transmission Substations that are housed in the Power Stations and via 132 kV or 66 kV overhead power lines or underground cables reaches the 11kV or 22 kV Medium Voltage switchgear in all the other Transmission Substations that are usually located within the load centers.

EAC is the Transmission System Owner and constitutes a Contracting Party to the Contractual Framework Agreement of the Electricity Market Rules with which it is obliged to make the Transmission System available to all Participants in the Electricity Competitive Market.

 

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The general responsibilities of the DSO are to develop and maintain an economical, efficient, coordinated, secure and reliable distribution system that ensures that all reasonable electricity needs are met, demonstrating the care and attention required to protect the environment.

These include:

 

• 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 Owner of the Distribution System is a contracting party to the Contractual Framework of Electricity Market  Rules, with which it is obliged to have the Distribution System for the use by all the Participants in the Competitive Market.

 

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