Advisor for the Unbundling, the Corporatization and the Privatization of the Electricity Authority of Cyprus (EAC)

MRC Group carried out an assessment of all possible scenarios and recommendations on the future (privatized or PSP) structure and ownership of EAC.

This project included the assessment of financing mechanisms to enhance the profitability of the electricity company either through the participation of the private sector or credit lines available in Europe.

The options analysis involved all possible degrees of unbundling and different forms of private sector participation to foster the technical, operational and financial performance of EAC, analysing the impact on the end-user tariffs.

The main quantitative part of the work revolved around the analysis of cost of service elements and structure of the vertically integrated monopoly (EAC) for all of its segments of activity: power generation, power transmission and power distribution & retailing.

The analysis also included an international benchmark on operational efficiency and costs by activity.