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Profiteering Allegations in Renewable Energy License Sales to EAC

Published March 5, 2026, 18:42
Profiteering Allegations in Renewable Energy License Sales to EAC

The Audit Office's report on the Electricity Authority of Cyprus (EAC) for 2023 reveals evidence of profiteering in the sale of Renewable Energy Sources (RES) licenses from private individuals to the EAC. The Auditor General, Andreas Papakonstantinou, stated to the House Control Committee that the EAC is significantly lagging in the development of RES, possessing only 20 Megawatts (MW) out of a total of 420 island-wide. Furthermore, it was found that the market model did not benefit the consumer, with private individuals exploiting the situation. Mr. Papakonstantinou expressed concern about the lack of strategy of the EAC, the delay in the introduction of natural gas and energy storage, as well as the delay in the installation of flexible machines. All of this, according to the Auditor General, leads to an increase in the cost of electricity for the consumer. The report highlights the need for immediate action to address the weaknesses and adopt a more effective strategy for the future of the EAC. The Chairman of the EAC's board of directors, Giorgos Petrou, responded that the report does not concern the current board and that measures are being taken to correct the weaknesses. He also pointed out that the EAC is trying to limit overtime and secure licenses for new RES projects. Regarding customer debts, he stated that they amount to 5 million euros, while collections are at 1.2 billion euros. Finally, Mr. Petrou announced that they are rapidly proceeding with the installation of smart meters, aiming to install approximately half a million meters by the end of 2027. The EAC has been excluded from the electricity market connection, but is trying to secure new licenses for RES projects, aiming to increase its participation in the production of energy from renewable sources.