Cyta is seeking to expand into the energy sector through legislation that would allow the state telecommunications operator to supply renewable power as Cyprus grapples with some of Europe’s highest electricity costs, according to a bill discussed in the Parliamentary Finance Committee.
The bill amending the Telecommunications Service Authority law would enable Cyta to conduct activities in telecommunications, media, information technology and similar technology sectors, as well as expand into energy and related energy sectors.
Cyprus faces one of the highest electricity costs in Europe, mainly due to dependence on imported fossil fuels, according to the bill. This burdens households and businesses, reduces economic competitiveness and increases the cost of living.
The bill states Cyta could play a decisive role as a renewable energy supplier, offering affordable and sustainable solutions to Cypriot consumers.
Cyta chairperson Maria Tsiakka said the bill concerns the cost of living and the country’s energy security, not just Cyta. The authority will help reduce electricity costs burdening households and businesses, she said.
The organisation’s entry into the energy sector will provide new options for clean and affordable energy and strengthen use of renewable energy sources, according to Tsiakka.
Equal treatment sought
Cyta is not seeking preferential treatment but equal treatment, Tsiakka said. “Today private telecommunications providers already have the right to enter the energy market. Other public organisations have the right to operate in more than one sector, including telecommunications,” she said.
The bill’s approval will strengthen competition, pressure prices downward and bolster the country’s green transition, Tsiakka said. She pointed out that the organisation’s entry into energy is directly connected to its sustainability as a public utility.
EAC chairman Giorgos Petrou said the electricity authority is open to collaborations and exploiting synergies, provided they support EAC’s goals for customer service and the energy transition.
“EAC’s position is that only through EAC and Cyta cooperation can electricity be provided at competitive prices to consumers and businesses. On one hand, EAC will offer its expertise and, on the other, Cyta will provide its flexibility and experience in the field of competition,” Petrou said.
He warned that if the collaboration is not permitted, the two organisations will compete with each other, with possible consequences for consumers.
The Finance Ministry said the authority could play a significant role as a renewable energy supplier to reduce energy costs and enter the competitive market.
The Energy Ministry supported competitive electricity market operation, noting the bill moves in the right direction and serves the public interest.
However, an Energy Ministry representative said there was no public consultation on the bill.