Cyprus Energy Regulatory Authority Annual Report 2021

43 Annual Report 2021 designing a support mechanism in relation to the form of tenders for the selection of beneficiaries, the conditions for participation in the tender, the remuneration ceiling, the duration of the support, the minimum technical requirements and other obligations for beneficiaries, any provisions to avoid overperformance, etc. This tender was closed in August 2021. Trading and Settlement Rules According to the Law Regulating the Electricity Market of 2021 L.130(l)/2021, the TSRs: • Govern the mechanisms, prices and other terms and conditions that apply in cases where licensees buy or sell electricity based on arrangements made by the TSOC. • Ensure that licensees, who are required to participate in the purchase and sell of electricity, under these arrangements, will not be subject to discrimination. • Promote efficiency and economy and facilitate competition regarding the purchase and sale of electricity under these arrangements. • They provide non-compliance charges which the TSOC, in its capacity as the Electricity Market Operator, imposes on any of the participants in the electricity market in case of failure to comply with any obligation provided in the Trading and Settlement Rules. • They are fully harmonized with the provisions of Regulation (EU) 2019/943, where applicable. The TSRs are adhered to be all final customers that directly or cumulatively participate in the electricity market, licensees or persons that have been granted exemptions, based on the provisions of Article 27 to the extent that is required by their licenses or exemptions. On 3 November 2021, CERA approved the amendments to the TSRs that were proposed by the TSOC - Version 2.0.3 (Decision No. 334/2021). The amendments related to changes in order to facilitate the process of outsourcing the actions required to fulfill the obligations arising from the participation in the wholesale electricity market to a Clearing House and the outsourcing of credit risk management to a Coverage Body in the event of a deficit arising from the failure Participant to meet his financial obligations, arising from his participation in the market. Given the time required by the TSOC for the supply of the relevant software and hardware for their implementation, the relevant TSRs will be published in the Official Gazette of the Republic of Cyprus at a later date that, based on the provisions of Article 81(6) of the Law, they will enter into force, by CERA's Decision. Also, during the year in question, TSOC proceeded to the legalized procedures for the revision of the TSRs in the context of complying with the provisions of CERA's Regulatory Decision No. 03/2019 (KDP 224/2019) "regarding the Establishment of the Basic Principles of the Regulatory Framework for InFront-Of-The-Meter Electricity Storage Facilities in the Wholesale Electricity Market". This task was finalized around the end of 2021 and expected to be approved in early 2022. Based on the provisions of the Electricity Law and specifically Article 93, until the publication of the revised TSRs in the Official Gazette of the Republic, the provisions of Regulatory Decision No. 04/2017 - KDP 223/2017 "Regarding the implementation of the transitional arrangements of the electricity market in Cyprus prior the full implementation of the new Electricity Market Model" and the Transitory Regulations of the Electricity Market which entered into force based on CERA Decision No. 118/2017, shall apply. The last revised version of the Transitory Regulations the year under review, is version 1.7 (Decision No. 278/2021, dated 03 September 2021).

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