EAC

From Akamas to vultures, a simple public warning

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From Akamas to vultures, a simple public warning

The need for civil society organizations to act as environmental watchdogs remains urgent, as recent revelations have shown violations of environmental conditions in the Akamas area. The scandal involved roadworks that ignored environmental conditions, and the Forestry Department was supposed to oversee the project. The Water Development Department had warned about violations a year before environmental NGOs raised the alarm. Additionally, efforts are being made to protect Griffon vultures from extinction, with poison baits and power line collisions being major threats. Despite efforts to persuade the Electricity Authority to make infrastructure safer, losses of vultures and eagles continue due to collisions and electrocutions.

EAC upgrades to stabilise system

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EAC upgrades to stabilise system

The board of the Electricity Authority of Cyprus (EAC) is set to award contracts for two projects worth €45 million to beef up the electricity transmission system. The EAC’s top priority is the stability of the system and providing uninterrupted power to consumers. The EAC is also working on increasing infrastructure projects to help with the penetration of renewables in the energy mix. The layout of the grid is not to blame for discarding energy generated from renewables, as the cutbacks are due to demand being less than the generated electricity. It is currently unfeasible to have a transmission grid that allows the connection of renewables from anywhere in Cyprus due to the high cost of building a new network. Strengthening transmission lines would require a major investment of hundreds of millions of euros, which consumers would have to pay for. Acquiring permits for new transmission lines also takes a long time.

EAC pondering price hikes for 2025

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EAC pondering price hikes for 2025

The Electricity Authority of Cyprus is examining tariff hikes for 2025 and plans to present their proposal to the energy regulator by July. The organization has cash reserves of over €280 million and plans to upgrade the Dhekelia power station at a cost of €110 million.

LNG import blues

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LNG import blues

The LNG import project at Vasilikos in Cyprus has faced recurring problems and delays. The project, which aims to switch power generation from oil to natural gas, could reduce electricity prices by one-third, resulting in annual cost savings close to €300-€400 million. The project has faced issues due to a badly conducted tender, unclear terms of reference, and a contractor with no experience in such projects. The current contractor, CPP, has claimed additional costs and the project is not progressing as expected. The government is considering various options to complete the project, including finding a way to move forward with the present contractor, seeking independent expert advice, and exploring alternative plans if necessary.

Cable caper cracked as police nab suspect in EAC substation burglaries

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Cable caper cracked as police nab suspect in EAC substation burglaries

Famagusta Police arrested a 35-year-old man for committing four burglaries and thefts between January and May 2024. The incidents included theft of cables from EAC substations and a residential burglary in Protaras. The suspect was linked to all four cases and remains in custody. Two other suspects, aged 31 and 29, were already apprehended for their involvement in one of the EAC substation burglaries on May 4, with their case progressing towards trial.

Delicate handling must come to an end

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Delicate handling must come to an end

The construction of the liquefied natural gas terminal at Vassiliko in Cyprus has been plagued with delays and cost increases, with the project not even halfway completed. The project was awarded to a consortium of Chinese, Greek, and Norwegian interests, with the hope of reducing electricity costs for citizens. However, additional costs have been incurred, such as €25 million due to steel price increases during the pandemic. The Audit Office report highlighted serious political responsibilities for the management of the project by the government. The consortium has filed a case demanding an additional €200 million due to delays. The situation is similar with the Larnaca Port and Marina project, where the company has been collecting revenues without starting the agreed-upon works. Overall, these projects have put the Cypriot citizens at risk of bearing additional costs without seeing the completion of the projects.

New vehicle sales decline 17pc on high taxes, interest rates

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New vehicle sales decline 17pc on high taxes, interest rates

Sales of new vehicles in Kenya fell 17.66 percent in the first quarter of 2024, the sharpest drop in seven years. This decline was attributed to increased taxation, rising interest rates, and a weakened shilling. Dealers such as Isuzu, CFAO, and Simba Corporation have been struggling in a tough operating environment, with climbing interest rates and pending bills affecting demand. The Kenya Revenue Authority also increased duty on shipping cars into the country, further impacting sales. Isuzu East Africa and CFAO Motors Kenya, which control a significant portion of new vehicle sales, experienced declines in sales, while Simba Corp saw a modest increase. The falling demand for vehicles has also affected government revenues.

Cyprus in trouble with the European Commission about industrial emissions

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Cyprus in trouble with the European Commission about industrial emissions

The Republic of Cyprus is facing a dilemma due to illegal operation of EAC power plants, risking sanctions from the European Commission. The Environment Department has prepared a report for criminal action against EAC. The revision of the Industrial Emissions Directive may allow a derogation for compliance by 2030. The European Commission has requested information on Cyprus’s intent to apply for a derogation. A meeting with relevant stakeholders will decide on the submission of a request and preparation of an action plan for compliance by 2030.

Our View: State-backed Cyta could threaten free market competition

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Our View: State-backed Cyta could threaten free market competition

Fact: The government drafted a bill to expand Cyta’s business activities, which was approved by the legislature in a few days due to the urgent need to install 50,000 smart meters to avoid losing a €35 million grant from the EU’s Recovery and Resilience Facility.

CyTA given green light to supply smart meters

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CyTA given green light to supply smart meters

CyTA has been given the approval to supply and install 400,000 smart meters by a new law passed by the House.