‘Pressure’ being applied to keep electricity payments down

The energy regulator (Cera) said on Tuesday it is “under pressure” to consent to Cypriot consumers paying a fee from now for the Great Sea Interconnector, the mooted subsea electricity cable linking the island to Greece.

Cera head Andreas Poullikkas said the agency faces pressure to reverse its decision of July 2, according to which Cypriot electricity consumers will start paying a charge for the interconnector, but only once it goes operational. The cable is expected to be completed by 2030.

Greece’s independent power transmission operator (Admie) wants Cypriot consumers to begin chipping in as of January 2025, like consumers in Greece will. Admie is the project promoter for the interconnector.

According to Poullikas, unless Cera plays ball, Admie has threatened to stop the project in its tracks.

The official also highlighted other reservations about the proposed €1.9 billion project – such as the absence of guarantees that its estimated cost will not rise.

Under an agreement between the two countries’ energy regulators, Cyprus will bear 63 per cent of the cost.

At any rate, said the official, Cera would take a definitive decision on this matter by the end of August.

Poullikkas was speaking at an extraordinary session of the House energy committee, convened primarily to discuss the debacle with the LNG project.

Regarding the Great Sea Interconnector, the Cypriot state is separately mulling whether to also become an equity investor. The potential investment would be to the tune of €100 million.

On this point, Energy Minister George Papanastasiou said a decision would be made over the next three months.

It would be better for the Republic of Cyprus to participate as a stakeholder, rather than “gift” the €100 million, the minister said.

He conceded there exists uncertainty over the interconnector project. But there is also a great deal of interest from investors. However, these investors are waiting to see whether Cyprus will participate in the equity before making up their mind.

Recently Greece’s Admie delivered a cost-benefit analysis for the project to Cypriot authorities. The government is reviewing the analysis to help it decide whether to become an equity investor.

A representative of the finance ministry told MPs that, in addition to foreign consultants reviewing the cost-benefit analysis on behalf of the energy ministry, the finance ministry itself plans to ask the European Central Bank for feedback.

Undersecretary to the president Irini Piki spoke of an “ongoing dialogue” between the two ministries on the issue of equity participation.

Weighing in, Akel MP and leader Stefanos Stefanou complained about the lack of information on the project.

By contrast, Diko’s Nicolas Papadopoulos supported the imposition of a charge on Cypriot consumers from now.

Edek MP Elias Myrianthous demanded clarity on whether the project will in fact be completed, given tensions in the eastern Mediterranean between Greece and Turkey.

He was alluding to last week’s incident where Turkish warships harassed a research vessel off the Greek island of Kasos in the Aegean. The vessel was carrying out surveys for the future deployment of the subsea cable for the proposed electricity link between Crete and Cyprus.