The Electricity Authority of Cyprus (EAC) is encountering strong resistance from trade unions over a government proposal to restructure the state-owned utility and involve it in the major power interconnector project.
The government has suggested that EAC’s regulated network activities be separated into a wholly state-owned company, which would then invest 100 million euros in the Great Sea Interconnector (GSI) project linking Cyprus with Greece via Crete.
EAC Chairman George Petrou confirmed receipt of the proposal from the Energy Minister but emphasised that the government would not force its adoption. “We were asked to study it, and if we accept, well and good. If not, another solution will be found,” Petrou told state radio.
However, union leaders view the proposal with suspicion.
Kyriakos Tafounas, president of EPOPAI (OIO-SEK union), stated, “It’s clear to us that the government’s proposal is merely a pretext for dismantling EAC and privatising its networks.”
Tafounas warned that such a move would be detrimental not only to the organisation but to all citizens, citing examples of price hikes and project mismanagement following similar restructurings in other countries.
The proposed restructuring mirrors the model adopted in Greece, where the Public Power Corporation (DEI) divested its network, with investments subsequently managed by IPTO, the Greek power grid operator.
Petrou maintains that the proposal carries no risk, as the subsidiary to be created would be a limited liability company with its sole asset being the 100 million euro investment.
The EAC board is set to discuss the proposal with management and unions before reaching a decision.
