Philenews

Cyta's Potential in Electricity Market Questioned by Auditor General

Published March 11, 2026, 12:18
Cyta's Potential in Electricity Market Questioned by Auditor General

The Auditor General of Cyprus, Andreas Papakonstantinou, has expressed doubts in a letter to the Minister of Finance, Makis Keravnos, regarding Cyta's ability to reduce electricity costs for consumers. The letter, sent on March 10th, concerns the bill allowing Cyta to operate in the energy sector and expresses fears of a potential reaction from the European Commission, considering Cyta's entry as state intervention rather than increased competition. Additionally, the Auditor General warns of potential financial damage to the EAC from competition with Cyta. Mr. Papakonstantinou argues that the high cost of electricity in Cyprus is primarily due to the lack of significant infrastructure, such as the electrical interconnection with Europe, the introduction of natural gas, energy storage, and network upgrades. He considers the expectation that Cyta's entry will lead to cost reduction to be misleading, emphasizing that competition alone will not bring substantial benefits to households. The Auditor General proposes alternative ways for Cyta to operate in the energy sector, such as offering enhanced service packages to its customers without directly competing with the EAC. He stresses the importance of cooperation and a complementary role between the two state organizations. He also points out the need to increase energy production from photovoltaics for immediate, albeit small, benefits to the consumer. Overall, the Auditor General's letter expresses serious reservations about the effectiveness of Cyta's entry into the energy market to reduce electricity costs, emphasizing the need for infrastructure investment and cooperation between state organizations.