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Shocking Report on EAC: Pollution, Renewable Energy & Reasons for High Electricity Prices

Published February 26, 2026, 09:11
Shocking Report on EAC: Pollution, Renewable Energy & Reasons for High Electricity Prices

The Audit Office has published a report highlighting significant weaknesses in the operation and strategy of the Electricity Authority of Cyprus (EAC). The report points to the slow development of Renewable Energy Sources (RES) by the EAC, with only four photovoltaic parks with a total capacity of 20 MWp compared to the network's total installed capacity of 420.1 MWp. This delay has led to a loss of competitive advantage for the EAC and has left room for private companies, without translating into benefits for the consumer. A significant part of the report concerns the high cost of purchasing greenhouse gas emission rights, which amounted to €955 million for the period 2020-2024, with €211.2 million relating to 2024 alone. This cost is passed on to consumers, making Cyprus the second most expensive country in the EU in terms of electricity prices relative to purchasing power. In addition, the report highlights environmental and regulatory risks, as the Vasilikos and Dekeleia power plants operate with expired industrial emissions permits and do not meet European standards. Failure to approve a derogation from the European Commission could lead to penalties for Cyprus. Finally, the report identifies weaknesses in meter checks, customer service (with thousands of unanswered calls) and procurement procedures (with a large percentage of tenders being conducted through negotiation without a call for tenders). Cases of incorrect application of debt collection procedures, overtime and increased electricity costs due to structural weaknesses in the energy sector are also noted. The report concludes with the need for policy and strategic decisions to reduce electricity costs.