Cyprus Parliament to Consider Amendment Allowing Cyta to Enter Energy Market

An amendment to the legislation that will allow the telecommunications company Cyta to provide new services, including energy supply, will be submitted to the plenary session of Parliament for consideration. The decision was made following a discussion in the House Finance Committee.

A representative of the Legal Service stated that the Constitution does not limit the scope of activity for Cyta or the Electricity Authority of Cyprus (EAC), although competition issues may arise.

State Aid Commissioner Stella Michaelidou emphasized that Cyta's participation in the energy sector must be carefully assessed in terms of project viability.

A representative of the energy regulator RAEK noted that any activity in this sector must fully comply with market rules.

The Ministry of Finance believes that Cyta's participation could help cover the needs of vulnerable population groups, especially in cases where the installation of solar panels is not possible.

Cyta Chairwoman Maria Tsiakka stated that the company is profitable and that telecommunications operators in many countries are already working in the energy sector.

At the same time, EAC Chairman Georgios Petrou noted that this is a complex process requiring deep analysis. He warned that the potential loss of customers could increase the financial burden on the remaining consumers.

Cyta trade unions stated that increased competition should not weaken state organizations in favor of private companies. EAC representatives expressed concern over the lack of a clear strategy.

The discussion was tense

The discussion at the end of the meeting was tense. MPs pointed out to the EAC unions that they did not express such resistance when private companies sought to enter the sector.

The Committee Chairwoman, Diko MP Christiana Erotokritou, called for constructive dialogue and announced that the bill would be forwarded to the plenary for consideration.