Cyprus-Forum.com

[DT.]

The system is beyond brokern Tim...needs fixing. And there's no point discussing it either. Its a condition on the bail out(in).

Paphitis, haven't exaggerated one word.

[CrookedRiverGuy]

The system is beyond brokern Tim...needs fixing. And there's no point discussing it either. Its a condition on the bail out(in).

Paphitis, haven't exaggerated one word.

As long as there are no financial and technical reporting, aimed at regulating a permitted/decent income for network operations, transmission tariffs and power prices, EAC will continue to screw any customer it has.

[kurupetos]

Cyprus is too small for more than 1 Electric Company. They could just allow competition from private companies... maybe they done it already as there are many small companies that do Wind / Sun power generation... but the truth is that nobody will invest the money required to build an EAC competitor. What they want is to buy EAC for cheap and then get the massive profits. A monopoly is a bad thing but a private monopoly is worst than a public monopoly... and this is what we will end up having if they sell EAC.

There are already some private electric companies in Cyprus and there are plans for more.

As I posted above the government can regulate prices and also make money from taxation. That's how it works in every other civilized country.

Why not allow private electric companies (EU, or others), to come and manage the electric system in Cyprus. Every 3-5 years have them bid for the right to manage the system(maintain, invest, upgrade), much like the French have been doing with their water infrastructure.

the government can regulate prices and also make money from taxation.

forget about the government regulating anything, the price will be set by the bidder. And why are you so inclined to have taxes and give your money to the government?

Bollocks. That is not how it works. The government can (and will) regulate prices, like it regulates the price of fuel sold in petrol stations.

On the other hand, the companies can try to generate electricity at the lowest possible cost within this price limit to make as much profit as possible. If they just buy EAC's shitty equipment they will just go bankrupt. Fortunately some companies have plans of generating electricity from renewables, which is the only way forward. The government must also increase taxation, since currently it is very low.

Don't be fooled, the fuss is about the overpaid lazy bums, many of them holding executive positions, in EAC, who do not want to lose their current privileges.

[kurupetos]

The system is beyond brokern Tim...needs fixing. And there's no point discussing it either. Its a condition on the bail out(in).

Paphitis, haven't exaggerated one word.

As long as there are no financial and technical reporting, aimed at regulating a permitted/decent income for network operations, transmission tariffs and power prices, EAC will continue to screw any customer it has.

Hello mate. Norway is a good example for Cyprus. It has many oil reserves, but generates all electricity from renewables (hydroelectric), while imposing high taxation to regulate wasteful consumption.

[Oceanside50]

it has historically made a profit for the state

When you just increase the price to cover your out of controll costs, you are bound to make a profit!

Here's what I don't understand whenever someone throws that statement out "its been making a profit for the state for years!" The profit basically means that it has charged the citizens of Cyprus more than its overheads are. Now when a state owned company does that isn't that effectively a tax? A more accurate statement should've been "we've been paying for the cost of the electricity and AHK's overheads (including the senior mgt's limo's, the employee benefits long after they're gone and the salaries for employees that have never gone to work there e.g Pambos the new head coach for the national team who until recently was earning 300k from AEL while officially employed and paid at CYTA.) and above that we have also been contributing to an indirect tax from the state regarding our power consumption.

Why else would a state owned company make a profit?

Are you serious?

I was knew there was a lot of corruption but this is ridiculous!

You must be exaggerating, right?

Would a private corp do that if it had a 5 year contract to run the show?

[Get Real!]

Just like racism and prejudice, corruption is part of human nature so there’s no getting away from it no matter how many governments you change or how many checks you install… someone will always find a way to beat the system to their benefit.

Corruption exists in every single country of the world and has existed in every single government that nations have ever had and all you readers here are subject to corruption given half a chance each to a varying degree.

You’ll find that the ones that complain the most about corruption are usually the ones who are angry that corruption is possible and they’re not benefiting from it while others do!

Finally, corrupt you were born and corrupt you will die…

Amen!

[Get Real!]

Btw, who wants to see my corruption meter of the corruption level of forum members I’ve known for years?

Ask and you shall receive...

[bill cobbett]

Btw, who wants to see my corruption meter of the corruption level of forum members I’ve known for years?

Ask and you shall receive...

Ooooh yes please our GR!... It is a Friday night. ...

[Sotos]

it has historically made a profit for the state

When you just increase the price to cover your out of controll costs, you are bound to make a profit!

Here's what I don't understand whenever someone throws that statement out "its been making a profit for the state for years!" The profit basically means that it has charged the citizens of Cyprus more than its overheads are. Now when a state owned company does that isn't that effectively a tax? A more accurate statement should've been "we've been paying for the cost of the electricity and AHK's overheads (including the senior mgt's limo's, the employee benefits long after they're gone and the salaries for employees that have never gone to work there e.g Pambos the new head coach for the national team who until recently was earning 300k from AEL while officially employed and paid at CYTA.) and above that we have also been contributing to an indirect tax from the state regarding our power consumption.

Why else would a state owned company make a profit?

Now the profits go to Pambos, Kokos, Kotsios... and the government as indirect tax. That is bad but at least most of that money come back to the Cyprus economy. When it is privatized... bought most probably by foreigners, those money will end up in bank accounts in Switzerland and Isle of Man... not the Cyprus economy. As Tim said the service by EAC has been excellent. So I guess you expect lower prices? I think you are wrong. I am not an economist, but I believe that the demand for electricity is fairly inelastic and the private monopoly will charge as much as they can which means at least as much as EAC was charging until now.

[Paphitis]

it has historically made a profit for the state

When you just increase the price to cover your out of controll costs, you are bound to make a profit!

Here's what I don't understand whenever someone throws that statement out "its been making a profit for the state for years!" The profit basically means that it has charged the citizens of Cyprus more than its overheads are. Now when a state owned company does that isn't that effectively a tax? A more accurate statement should've been "we've been paying for the cost of the electricity and AHK's overheads (including the senior mgt's limo's, the employee benefits long after they're gone and the salaries for employees that have never gone to work there e.g Pambos the new head coach for the national team who until recently was earning 300k from AEL while officially employed and paid at CYTA.) and above that we have also been contributing to an indirect tax from the state regarding our power consumption.

Why else would a state owned company make a profit?

Now the profits go to Pambos, Kokos, Kotsios... and the government as indirect tax. That is bad but at least most of that money come back to the Cyprus economy. When it is privatized... bought most probably by foreigners, those money will end up in bank accounts in Switzerland and Isle of Man... not the Cyprus economy. As Tim said the service by EAC has been excellent. So I guess you expect lower prices? I think you are wrong. I am not an economist, but I believe that the demand for electricity is fairly inelastic and the private monopoly will charge as much as they can which means at least as much as EAC was charging until now.

What should happen is that you will end up with a more efficient Energy Industry with lower costs and hopefully with Government involvement and a bit of price regulation, this will result in cheaper power. Privatization should also get rid of some of the waste mentioned by DT!

Most of the money should still end up in Cyprus as the Power companies will be owned by Pension and Fund Managers and other Cypriot shareholders.