150 million euro investment remains inactive because natural gas was not brought in
Statement by AKEL MP Christos Christofides after the meeting of the Parliamentary Finance and Budget Committee
4 March 2024
We have today examined the Budget of the semi-governmental organisation Cyprus Electricity Authority (AHK).
First of all, we must underline that the Cyprus Electricity Authority is a critical organisation for the Cyprus economy and society. As things stand today, without the proper functioning of the Electricity Authority, we will have huge problems, some of which we already have, in the economy and society.
The first thing that we have pointed out today is that the criminal negligence, if not scandalous handling of the arrival of natural gas has many consequences, including the following:
A EUR 150 million investment by AHK, when it is completed in a few months, will not be able to operate because there is no natural gas. And of course, these costs will be passed on to the Cypriot consumer. On account of the criminal negligence of certain forces and circles. That is, not only will the price of electricity not be reduced because of the non-arrival of natural gas, but also because investments that have been made for the utilization of natural gas remain inactive.
We have also discussed a very serious issue for us, the involvement of AHK in renewable energy, which we have been told today before the Finance and Budget Committee that it cannot find land to install photovoltaic and other parks.
I would like to remind you that, as AKEL, we have tabled a proposal for a bill proposal, according to which the government would be obliged to grant land, following bidding or even low-bidding competitions. Because what has been happening until now? Various companies have requested and reserved many large pieces of land to prevent them from being allocated to competitors. They did not even use them. Without considering the non-transparent procedures by which they acquired them. As a result, they did not invest in renewable energy and problems were created from there as well.
We also pointed out the costly Base Plants owned by AHK, which also shoot up the price of electricity. There is the issue of pollutants, of course.
Let me conclude with an issue that we are very much concerned about. When in a few years’ time we will have electricity from Europe at lower prices, if what should have been done so many years ago and unfortunately was not done, by some people who we do not know whether they believe in the existence and operation of a semi-public organisation such as the Cyprus Electricity Authority, is not done now, the Authority will face serious shocks and serious challenges.
So, steps must be taken immediately. The Cypriot consumer cannot be paying the most expensive electricity in Europe today, in a bleak electricity market. AHK is being affected by government decisions and a strategic plan is not being implemented on how to serve Cypriot society, Cypriot citizens and the Cyprus economy. As well as how AHK, this crucial semi-public organisation for the country, will survive.
