The General Secretary of AKEL has requested a meeting with the President of the Republic to discuss energy issues

 

12 April 2023, AKEL C.C. Press Office, Nicosia

The General Secretary of the Central Committee of AKEL, Stefanos Stefanou, sent a letter to the President of the Republic, Nikos Christodoulides, on Monday, 10 April, requesting a meeting in relation to the delay noted in the arrival of natural gas, the unbearable cost of electricity and the prospects of the Cyprus Electricity Authority AHK.

In a statement, within the context of a visit to the People’s Social Solidarity Network, the General Secretary of AKEL said that these issues “are very critical and crucial for the present and future of the country”, noting also that the issues of energy sufficiency and energy security are of critical importance.

“That is precisely why in my letter, after briefly setting out a number of reasons, I request a meeting with the President of the Republic with the participation of the relevant Ministers and agencies to discuss these issues, which, as I have said, are at a very critical juncture.”

The General Secretary of AKEL recalled that a similar meeting had been held at the request of AKEL with the previous President of the Republic in February 2022. “Unfortunately, we see that the issues we discussed back then have not progressed and there is a very long delay in many of these issues,” Stefanos Stefanou pointed out. The General Secretary of AKEL stressed that “the time factor is very crucial in these issues, which is why we consider it our duty, as the responsible force of the country, to discuss such a crucial and key issue, which has to do with energy, with the President of the Republic”.

Finally, the General Secretary of AKEL noted that the party has elaborated specific proposals and approaches, which, after being briefed by the President and Ministers, it is ready to discuss “in order to address these problems as much as possible and to ensure energy security and sufficiency in the country”.

The letter is reproduced below:

“Energy issues are of major importance for the country, the economy and citizens and are one of the key policy priorities for AKEL.

Delayed arrival of natural gas

The delay observed in the arrival of Natural Gas causes real problems and generates high costs in electricity production.

The decision of the Council of Ministers that Natural Gas would be available for electricity generation from 1 January 2020 has not been implemented. The Natural Gas Public Company (DEFA) back then had announced that the arrival of Natural Gas would be achieved in the summer of 2022, then in the summer of 2023 and now it seems that no one knows when Natural Gas will be available.

We read reports in the press that there are new delays, that the company contracted to build the LNG import vessel (FSRU) is requesting additional multi-million euros for the completion of the project and that the two sides are in arbitration.

The long delay over several years in the arrival of Natural Gas for electricity generation has caused and continues to cause high costs due to increased emissions of pollutants amounting to hundreds of millions of euros and furthermore, it seems to provoke a major issue for the adequacy of production and the secure supply of the country for the coming years.

Unsustainable electricity costs

The high cost of electricity is due to the high cost of oil and emissions, but also to a number of other factors for which appropriate measures were not taken in previous years, such as:

• Delay in the arrival of natural gas
• Failure to conduct competitive tenders for the purchase of energy from renewable sources
• Failure of the Cyprus Electricity Authority (AHK) and its obstruction to include photovoltaics in its energy mix
• Failure to use 50% of the State’s revenue from greenhouse gases for the green transition and electricity cost containment
• The failure or unwillingness to tax the sky-high exorbitant profits of companies producing and supplying energy from renewable sources and to return these exorbitant profits to consumers.

 

Structural problems of AHK

The structural problems AHK is confronted with place it in a very difficult position in view of the operation of competition. The serious understaffing of AHK and the failure to fill a number of managerial posts in a timely manner deprive it of the ability to respond to the needs and challenges it faces. The delay in the implementation of the modernisation of the generation units and the failure to expand, strengthen and maintain the transmission and distribution networks poses serious dangers to the energy security of our country.

Furthermore, the failure of AHK to engage in renewable energy sources and/or the obstacles placed in this direction by other state bodies undermine the ability of AHK to operate successfully in a competitive market for the benefit of consumers.

We do not want to be the fortune-tellers of evildoers, but we are very concerned about the future of AHK unless urgent steps are taken in the correct direction. A possible collapse of AHK will have a dramatic impact on the Cyprus economy, society and our country’s secure energy supply.

On the basis of the above concerns, we expect from you and the competent government officials a comprehensive briefing on what is happening and the prospects for power generation in our country.

We would like to request a meeting with you to discuss the above, looking forward to your positive response.”