Law no. 130 (I) of 2021 on Electricity Market Regulation.

This Law, in order to harmonise Cypriot legislation with European Union Law on the matter, provides for: the creation of a new licensing regime regarding the production, transmission, distribution, supply and storage of electricity; the regulation of the electricity market in the Republic, through the establishment of common rules concerning the production, transmission, distribution, storage and supply of electricity, as well as the protection of consumers, with the aim of creating truly integrated, competitive, consumer-focused, flexible, fair and transparent electricity markets; ensuring affordable, transparent energy prices and costs for consumers; laying down basic rules for the organisation and operation of the electricity sector, in particular rules for strengthening open access to the integrated market, in order to allow third-party's access to transmission and distribution infrastructures; achieving a competitive, secure and environmentally sustainable electricity market; the establishment of proper authorities for electricity market regulation. The Law defines the following relevant terms: electricity market; energy storage; security of electricity supply; biogas; biomass; best available techniques; energy storage facility; energy from renewable sources; National Energy and Climate Plan; electrical equipment; small enterprise; fixed-term contract for the supply of electricity.
Concerning the objectives and duties of the Cyprus Energy Regulatory Authority, this Law describes the following: promoting a competitive, flexible, secure and environmentally sustainable internal market in electricity; increasing the development of regional cross-border markets within the European Union; removing restrictions on trade in electricity between Member States; facilitating access to the network of new generation capacity and energy storage facilities; providing appropriate incentives to system operators and users; achieving high standards of universal and public service in electricity supply; ensuring high levels of customer protection; ensuring safety, continuity, quality and reliability of the electricity supply. Further matters covered by this Law include: cooperation between regulatory authorities on cross-border issues; maintaining separate accounts of electricity companies; responsibility of authority in investigating violations and conducting investigations; imposition of administrative fines and sanctions; principles governing regulated pricing, fees and charges; issuance of licences and permits for the construction and operation of an electricity generation facility; taking measures to ensure the adequacy of the internal electricity market resources; access to transmission and distribution system of electricity market and transport rules; offences.