A special report from the Audit Office highlights serious issues in the operations and strategy of the Electricity Authority Cyprus (EAC), underlining the limited development of renewable energy sources.
By September 2025, the EAC operated only four photovoltaic parks with a combined capacity of 20 MWp, compared to 420.1 MWp installed in the distribution network. The Auditor General noted that this delay left the EAC behind in renewable energy adoption, giving private companies a lead without delivering significant benefits to consumers.
Emissions costs burden consumers
The cost of greenhouse gas emission allowances is particularly high. Between 2020 and 2024, total expenditure reached €955 million, with €211.2 million recorded in 2024 alone (unaudited figures).
These costs are directly passed on to consumer electricity bills, at a time when Cyprus ranks as the second most expensive EU country for electricity relative to purchasing power.
Environmental and regulatory risks
The Vasilikos and Dekhelia Electricity Plants operate with expired Industrial Emissions Licences since 31 December 2020, failing to fully meet EU emissions limits.
Without approval of a deviation request from the European Commission, Cyprus could face sanctions for non-compliance.
Operational gaps and customer service
The report identifies multiple operational weaknesses:
- Meter inspections are insufficient, with less than 45% of required checks performed in certain years.
- The Customer Call Centre left 384,702 calls unanswered between 2022–2024.
- Over 56% of tenders above €10,000 (2018–2023) were negotiated without open competition, limiting market transparency.
- Issues with debt collection procedures and an incident of an employee withholding €29,750 from photovoltaic connection applications, later reimbursed.
Overtime and benefits concerns
The report also notes a long-term increase in overtime, with expenditure of €6.6 million in 2022, alongside multiple cases exceeding annual overtime pay limits.
Broader energy framework
Structural weaknesses in Cyprus’ energy sector – delayed natural gas imports, lack of grid interconnection, limited storage, and ageing units – sustain high electricity costs and increase supply security risks.
The Audit Office emphasises the need for decisive policy and strategic action by the government and CERA to ensure a meaningful reduction in electricity costs for consumers.
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