Both the Cypriot and Greek governments feel they gained time with the decision to update the technical and economic data for the electrical interconnector between the two countries. However, significant financial obligations owed to the Greek Independent Power Transmission Operator (IPTO or ADMIE) require rapid resolution.
Beyond the first and second instalments of €25 million due to be paid to ADMIE by the government through electricity tariffs (without immediately burdening consumers), as mandated by the 2024 Framework of Understanding, ADMIE is demanding several tens of millions more from the regulatory authorities, RAEK (Cyprus) and RAAEY (Greece).
A priority issue involves €19 million related to delays in performing marine surveys in the area between the two countries.
The French company Nexans was scheduled to conduct the surveys in 2024 and 2025. However, beyond bathymetric surveys within the two countries’ territorial waters, Nexans failed to execute the work on time due to Turkish objections in the maritime area, specifically the sea off Kasos, southeast of Crete. Those postponements led to an additional financial burden for Nexans, which is claiming these costs (known as “demurrage”) from ADMIE, which in turn claims them from the two regulators.
Phileleftheros sources indicate that ADMIE continues to press quietly for the €19 million payment so it can pay the French company.
The Cyprus Regulatory Authority for Energy (RAEK) has yet to decide on paying the amount but will soon be obliged to make a ruling. RAEK reportedly remains concerned about whether the Cypriot consumer should bear the €19 million, or at least the part corresponding to Cyprus based on the proportional cost allocation (63%), given that the surveys were delayed or frozen without Cypriot fault.
Concurrently, RAEK must decide on outstanding operational costs claimed by ADMIE for the Great Sea Interconnector project. The exact amount is unclear, but sources estimate it to be slightly above €10 million. To lock in the amount due to the project implementation body for operational costs, RAEK is awaiting additional supporting documents while disputing the level of some of ADMIE’s expenses.
A payment to ADMIE is also pending for the amount it paid to the Cypriot company EuroAsia Interconnector in the summer of 2023 when it took over the electrical interconnection project. ADMIE submitted documents showing the amount paid to EuroAsia was €48.8 million. However, RAEK, along with RAAEY, approved only €12 million, arguing that the remainder did not relate to this specific electrical interconnection but mainly to the Crete–Attica interconnector. ADMIE strongly disputes this decision’s correctness and has sought support from the European Commission’s Directorate-General for Energy.
One of the most significant disagreements concerns the amount RAEK justified as recoverable expenses for the implementation body during the project’s execution. ADMIE maintains it has spent approximately €250 million on the project, but RAEK approved only €82 million, reserving the right to approve more upon receiving additional payment documentation. Regardless of the amount gradually approved, ADMIE will, in the best-case scenario, only receive €25 million per year in the phase before the interconnector becomes operational (up until 2029). Any further recognised amount will be paid after the Great Sea Interconnector (GSI) starts operations, provided the project proceeds normally.
It should be noted that ADMIE has already appealed RAEK’s disputed decisions to the Administrative Court, requesting their cancellation.