The Cyprus Energy Regulatory Authority (CERA) has firmly rejected pressure from the European Union (EU) and the Independent Power Transmission Operator (IPTO) of Greece to immediately approve financial safeguards for the proposed electricity interconnection project between the two countries.
Despite persistent urging during a recent videoconference, CERA has maintained that the geopolitical risk associated with the project, particularly due to potential Turkish interference, should not be borne by electricity consumers.
The regulatory authority has insisted that the EU and the governments of Cyprus and Greece should take responsibility for guaranteeing the project’s realisation and addressing any financial risks.
The EU Commission has pledged to use diplomatic means to ensure the project’s completion but has not committed to covering the costs in the event of failure.
CERA has made it clear that it will not alter its existing regulatory decision, which allows for the potential recovery of expenses only if the project fails due to the actions of third parties.
Sources suggest that the Cypriot government aligns with CERA’s position, indicating that an official announcement is imminent.
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