17 Annual Report 2021 • Sets the rules for the operation and distribution of the interconnection capacity, in consultation with the appropriate authorities of interconnected Member States. • Prepares and implements long-term planning regarding the planning of supply and transmission capacity of natural gas undertakings over the long term so as to satisfy the demand of the system for natural gas, achieve the diversification of sources, and ensure supply to the customers. Longterm planning includes the security of supply, energy efficiency/demand-side management and the achievement of energy-related environmental goals and targets from renewable sources. In addition to these specific responsibilities and powers, during the execution of its duties and the exercise of its responsibilities and powers, CERA can: • Take decisions in accordance with the provisions of the Law and the Regulations issued thereunder. • Take regulatory decisions to determine how it will regulate the electricity market and which licensees will be bound by such a regulatory decision. • Issue Regulations based on the Law. Actions to address the repercussions of the COVID-19 virus on the energy sector The COVID-19 pandemic triggered the change to the global medium-and long-term economies, given that it affects an ever-growing number of sectors. The way in which organizations and people use energy has already changed significantly due to the socio-economic impacts of the pandemic. The decommissioning of the economy resulted from the restrictive lockdowns that were implemented to stop the spread of the pandemic. Many European countries imposed lockdowns throughout 2021, while most countries implemented restrictive measures rather than total lockdowns. Restrictive measures usually resulted in the closing of stores, businesses, workplaces and schools and in many cases national restrictions of freedom of movement during the day. The Government of the Republic of Cyprus imposed a partial lockdown in 2021 which ran from 26 April to 9 May 2021. The pandemic-induced reduction in social and economic activity has affected all aspects of life, including the electricity sector. As expected, the gradual shift to remote working and learning resulted in lower electricity consumption in the commercial and public sector and an increase in the electricity consumption of households. The sudden and major decline in demand affected all the energy markets resulting in a drop in prices. Global data have drastically changed in 2021. The rapid increase that was observed is attributed to the easing of the pandemic restrictions, but mainly to the increase in the prices of natural gas and greenhouse gas emissions allowances (mainly CO2). The last two factors are also the main drivers of the continuous and unprecedented price surges that Europe faced until the end of 2021. In an effort to prevent the surge in electricity prices due to the increase in the prices of greenhouse gas emission allowances, Cyprus took a number of measures which positioned the electricity price for household consumers among the lowest prices in major European countries.
RkJQdWJsaXNoZXIy MzU4MTg0