The ongoing tension surrounding the procurement and installation of smart meters by the Electricity Authority of Cyprus (EAC) has taken another turn, as uncertainties loom over the process.
EAC’s efforts to expedite the procurement of at least 50,000 smart meters, out of a planned total of 400,000, have hit a roadblock.
Despite attempts to bypass lengthy legislative procedures for open tenders, the General Accounting Office, the competent authority for public contracts, has rejected EAC’s request for an expedited negotiation process with a Swiss company. This decision jeopardizes a potential €35 million grant from the EU’s Recovery Fund.
According to information obtained from Fileleftheros, the General Accounting Office has informed EAC that failure to install the 50,000 meters by autumn would not result in the loss of the European grant.
Instead, EAC is urged to focus on signing a contract with a contractor for the full 400,000 meters by the end of 2024.
However, the path forward remains uncertain.
While the General Accounting Office advises EAC to continue current procedures with the Review Authority for Tenders and the Administrative Court, there are concerns that delays in legal proceedings could hinder EAC’s ability to make timely decisions and sign contracts before the year’s end.
The procurement process has already faced significant challenges. EAC had initially awarded the contract for the 400,000 meters to Cyta.
However, this decision was contested by another bidder, part of the Logicom group, leading to the annulment of Cyta’s involvement by the Administrative Court. Both EAC and Cyta have lodged appeals against this decision.
As the legal battle continues, EAC finds itself in a precarious position, navigating regulatory hurdles and facing pressure to secure vital infrastructure upgrades for Cyprus’s energy sector.
