Meeting between the General Secretary of AKEL S.Stefanou and the Cyprus Electricity Authority (AHK) trade unions

 

AHK has – and must continue to have – a key role in Cyprus’ energy sufficiency and security in Cyprus

24 January 2024, AKEL C.C. Press Office, Nicosia

We had a very interesting and productive meeting with the trade unions in the semi-governmental organisation of the Cyprus Electricity Authority (AHK). We of course discussed the important and urgent issues affecting the Authority and the crucial role that it has to play as a public organisation in our country’s energy affairs.

AKEL’s position is a long-standing and enduring one. Namely that AHK has – and must continue to play – a decisive role in Cyprus’ energy sufficiency and security, taking into account that we are an isolated island, a semi-occupied state in the Eastern Mediterranean and therefore it is very important that the state through AHK can play an important role in promoting and ensuring important roles and factors so that the country has energy sufficiency and security.

It is also very important that the State, through its operation and activity, enables AHK to ensure a low electricity price to consumers, a huge issue for us here in Cyprus.

This issue concerns investments that were not made, decisions that were not implemented – whether they have to do with the arrival of Natural Gas in Cyprus for power generation purposes, either because AHK was not allowed to make the investments it should have made, or because the Board of Directors of AHK was responsible for not doing what it should have done.

The most important thing for us is that the State, first and foremost, the government should enable AHK to develop its work and investments, to take care of and develop its infrastructures and of course to be able to play a decisive role in the power generation sector.

We have discussed various issues as I have said and I think that both of us conclude that we are on the same side, that we have a convergence of views on both the role that the AHK should play, what it should do and what the state should leave the AHK to do, providing it with all the necessary tools to enable it to proceed with its plans.

We have agreed to continue the ongoing dialogue with the trade unions in AHK on the various issues that we face. We are also going through a very interesting period because numerous investments and projects are underway. At the same time we have a newly appointed Board that takes over AHK. Both the previous Boards and the new Board will be judged by its decisions and actions whether it is worthy of the decisive role it assumes for such an extremely important public utility organisation such as AHK.

I reiterate that AKEL will continue to stand by AHK, it will continue to make demands from AHK. The aim is always to succeed in meeting the demands of our times, to rise to the big challenges that lie before Cyprus with the important aim of providing electricity to the country at the lowest possible price. We can achieve this, but we have to work very hard to realise this goal.

Commenting on the right of AHK to invest in renewable energy sources, the General Secretary of AKEL said:

“We need to understand what AHK’s role can and must be. Recently, AHK’s investment in a large renewable energy plant has been announced. What is the price that AHK will sell for? 5 cents a kilowatt hour. Do you know the private sector’s price? From 15-25 cents a kilowatt hour. Everyone can work out the sums and know how much consumers can benefit from AHK’s decisive intervention in the renewable energy sector and how much super profits specific electricity companies make at the expense of consumers, households and businesses.

AKEL has tabled a proposal which it will reintroduce for the taxation of exorbitant profits as has been done in most EU countries. The revenues from these profits must be channeled to consumers and for investments to continue.

I urge the government not to behave like the previous administration which, despite all its promises, did not go ahead and blocked the issue of taxing super profits, and to help people and society so that:

• Firstly, tax the super profits in the energy sector
• Secondly, to provide every opportunity on the ground to AHK to make investments by penetrating the renewable energy sector because it is one thing to be given the right and quite another for the state to help you make these investments.
• Thirdly, which is also important in this dynamic field of energy, AHK must be supported so it is able to play its decisive role.

Life has proven that especially in times of crisis it is the state and its institutions that can support the country and society. A characteristic example is the pandemic. Had not been for public hospitals I don’t know where we would be now. The same applies to the energy sector. If we did not have AHK I do not know where Cyprus would be in this crucial sector.

So, by having demands from AHK, which has to operate on the basis of all modern facts, the state and government should give AHK the opportunity to play its role.