ECA has been appointed by the Electricity Authority of Cyprus (EAC) to design new tariff structures and levels for the 2014-2018 period covering the entire vertical chain of service provision (generation, transmission, system operation, distribution and supply). The Cyprus energy sector is undergoing significant change (e.g. expected arrival of natural gas, full liberalisation of the electricity market, greater penetration of renewable energy, etc.), which means that the Cyprus electricity market in future will be very different to that which exists now. The challenge therefore is to define tariffs that are consistent with feasible scenarios of the physical development of the electricity and gas sectors in the country.