Dialogos

Damning Report on EAC: €955m in Pollution Costs, Renewable Energy Delays, and High Electricity Prices

Published February 26, 2026, 09:02
Damning Report on EAC: €955m in Pollution Costs, Renewable Energy Delays, and High Electricity Prices

A report by the Audit Office reveals serious weaknesses in the Electricity Authority of Cyprus (EAC) regarding its strategy, operation, and internal control. The report highlights delays in the development of renewable energy sources, high electricity costs compared to other EU countries, and significant expenditure on pollution emission rights. Cyprus ranks second in the EU in terms of electricity costs. The EAC has limited penetration of renewable energy projects, operating only four photovoltaic parks with a total capacity of 20MWp, while the total installed capacity of photovoltaics on the distribution network has reached 420.1MWp. The report states that the EAC is losing its leading role in the energy transition. The expenditure on the purchase of greenhouse gas emission allowances amounted to €955 million for the period 2020–2024, accounting for 70% of the EAC’s total operating costs. This cost is passed on to consumers through the fuel and pollution clause. In addition, the Vasilikos and Dekeleia power stations have been operating with expired Industrial Emissions Permits since 2020. The report also points out that 56.1% of tenders above €10,000 were conducted through a negotiation procedure without prior publication, limiting competition. The Audit Office warns that if these weaknesses are not addressed immediately, consumers and public finances will be further burdened.