Negotiations on the regulatory framework for the Greece-Cyprus electrical interconnection hit a snag over the weekend, sources close to the matter said, and negotiations continue.
The Greek Independent Power Transmission Operator (IPTO) is reportedly seeking higher annual revenues from Cyprus than proposed by the Cypriot government to recover interconnection costs, according to unofficial sources.
The Cypriot government had previously committed to pay approximately 25 million euros annually from 2025 to 2030 from a state fund, likely sourced from greenhouse gas emission allowance revenues. This arrangement aimed to improve the project’s attractiveness to lenders and investors without directly impacting electricity consumers.
However, IPTO is now pursuing significantly higher annual amounts, either from the state or consumers, sources said. The Greek operator is also reportedly requesting that the cost recovery agreement for the construction phase remain open-ended, rather than being fixed for the 2025-2030 period.
IPTO Chairman Manos Manousakis is said to be pushing for cost recovery to continue “until the cable’s operation”, raising questions about the project’s completion by the mandated 2030 deadline.
The Cypriot government has reportedly informed Greek officials that it does not intend to meet IPTO’s new demands, according to sources familiar with the negotiations.
An “ultimatum” issued by the French cable manufacturer Nexans to IPTO, which has yet to fulfil its contractual obligations, is set to expire today, though the situation remains fluid.
