President Christodoulides has accused the head of Greece’s electricity grid operator IPTO of attempting to blackmail the Cypriot government, escalating tensions over the countries’ electricity interconnector project.
“If the head of IPTO thinks that the Cypriot government can be blackmailed with such letters or with paid advertisements, he obviously does not know who he is dealing with. The government is here to support only the interests of the Cypriot people,” Christodoulides said.
The president was commenting on a Phileleftheros report that IPTO had filed an objection against a decision by Cyprus’s energy regulator CERA to recognise 82 million euros in expenses and approve payment of 25 million euros for 2025.
IPTO files objection over regulator’s 25-million-euro decision
IPTO confirmed it filed an objection against CERA’s decision but disputed parts of the Phileleftheros report.
The operator said it is only claiming the 25 million euros for recovery of its 2025 expenses and recognition of its remaining expenses, which it says total 251 million euros, for recovery later after the interconnector begins operating.
However, it is not clear why IPTO would file an objection against a decision that satisfies its main and urgent request for recovery of the 25 million euros for 2025 expenses, risking losing even that amount if the objection is accepted.
IPTO said it filed the objection because CERA recognised only 82 million euros as justified expenses, whilst the operator claims its expenses totalled 251 million euros.
But IPTO knows that the process of justifying its expenses is ongoing, with expenses approved according to the documentation it submits to the regulator.
CERA has previously informed ADMIE that it will approve additional recoverable expenses from the claimed 251 million euros once additional documentation, including invoices, is submitted.
Relations between Cypriot authorities and IPTO chief described as problematic
The Cypriot government had previously informed the Greek government through various channels that relations between Cypriot authorities involved in the electricity interconnector and IPTO chief Manos Manousakis were problematic to poor, according to sources.
This has been attributed to an “aggressive” to “confrontational” stance by Manousakis during lengthy negotiations and video conferences with the Directorate-General for Energy.
The president’s statement caused a stir in both Cyprus and Greece. Most Greek media described Christodoulides’s statement as harsh, whilst some spoke of exaggeration.
Greek PM calls emergency meeting on interconnector dispute
Greek Prime Minister Kyriakos Mitsotakis called an emergency meeting at Maximos Mansion on Monday, attended by the energy minister and IPTO representatives.
The decision added a dramatic dimension to the issue, but public anxiety in both countries was not resolved after the meeting concluded.
Journalists were informed that “the prime minister was briefed by the leadership of the Ministry of Environment and Energy and the management of IPTO on issues concerning the electricity interconnector. There will soon be relevant statements from the government”.
However, journalists were also told that the Greek government’s statements would not be made on Monday, prolonging the wait for Greece’s response.
Unofficial reports suggest pressure is mounting on Mitsotakis for his government to take a leading role in the sensitive interconnector issue and limit IPTO, in which the state holds a majority stake, to technical matters only, given the project’s great geopolitical significance for both countries.
IPTO sources said there is strong dissatisfaction from the Chinese state company State Grid Corporation of China, which holds 24 per cent of IPTO’s shares, over the project’s progress and the regulatory framework for recovering the expenses IPTO is incurring.
