The approval by the House of Representatives of legislation allowing Cyta to operate in the energy market has triggered an open dispute between the trade unions representing employees of the Electricity Authority of Cyprus (EAC) and Cyta. Representatives of both sides expressed sharply opposing views during radio interviews on Politis 107.6 & 97.6, focusing on issues such as renewable energy licences, institutional equality and the impact on competition in the electricity market.
EAC union accuses government and Cyta
Speaking on the programme “Morning Review”, the President of the EPOPAI EAC union, Kyriakos Tafounas, directly accused the government and Cyta of using the organisation as a “vehicle” to dispose of expensive private licences for renewable energy production.
He said such licences, which cost between €30,000 and €40,000 to obtain, are currently being sold for several million euros. Since 2020, the unions have been calling on the Cyprus Energy Regulatory Authority (CERA) to revoke them, without result.
According to Tafounas, the EAC refused to purchase these licences because they do not serve the objective of providing cheaper electricity for consumers.
He also announced the possibility of legal action, urging the EAC to challenge the recent amendments to electricity market legislation and the decision concerning Cyta before the Supreme Court, describing them as unconstitutional.
If the organisation does not take action, he said the employees will proceed independently, estimating that the legal process could delay the implementation of the legislation for years.
Referring to the amendment excluding Cyta from conventional electricity production, Tafounas argued that the wording of the second paragraph leaves a “window” for full involvement in the sector.
He concluded that consumers need cheaper electricity through the modernisation of the EAC and investments in energy storage, rather than the introduction of new competitors.
Cyta union rejects accusations
In contrast, the Secretary-General of the EPOET OHO SEK union representing Cyta employees, Ilias Demetriou, speaking on the programme “Second Look”, rejected the accusations as exaggerated.
He questioned why the EAC objects to Cyta entering the market but not to the six or seven private companies that had already done so earlier.
Demetriou also noted that the EAC has been active in the telecommunications sector since 2003, providing access to its utility poles to private companies at what he described as “extremely low prices”, a practice that had previously been criticised by the former Auditor General.
He described Cyta’s move as a natural development in line with European trends linking telecommunications and energy services to offer combined service packages.
Cyta, which spends around €15 million annually on electricity, will initially cover its own energy needs by purchasing electricity from the EAC or private suppliers before offering more competitive packages to customers, thereby strengthening competition in the market.
Demetriou also referred to the Office of the Attorney General, which during two sessions of the parliamentary Finance Committee confirmed the constitutionality of the bill.
He added that Cyta is expected to return €50 million in profits to the state this year, contributing to the government budget.
Cyta’s official position
Cyta issued a statement welcoming the vote as a “key step” in its development within a competitive market and thanked all members of parliament for their support.
The Chair of Cyta’s Board of Directors, Maria Tsiakka, said the organisation would turn the vote of confidence into “tangible benefits for society”, while remaining committed to market rules and the new institutional framework as a public utility organisation.