Filenews 27 August 2024 - by Chrysanthos Manoli
All the pressure exerted on the Cyprus Energy Regulatory Authority (CERA) by the EU and IPTO, in a way that is light years away from tolerable diplomatic, political and technocratic frameworks, has fallen on deaf ears.
After the last marathon teleconference held on Friday, during which Fileleftheros reports that it was demanded by the regulator to say "here and now" yes, it has become clear to everyone that CERA will not consent to the financial security of ADMIE, in order to recover all its costs even if the electricity interconnection is not carried out under Turkey's responsibility.
CERA's position remains the following: The cost of geopolitical risk, which is recognized by all stakeholders, is not a matter for the regulatory authorities to decide, but for the European Union itself and the governments of Cyprus and Greece. The regulator in Greece, however, consented, at the request of the Greek government, to transfer the geopolitical risk to electricity consumers in Greece.
In other words, the two governments and the European Union should ensure, politically, that the project is carried out, so that consumers are asked to pay through their electricity bills, or they must themselves safeguard the financial interests of the promoter, committing themselves to pay it all costs if Turkey obstructs the interconnection.
The European Commission, through its Directorate-General for Energy, has undertaken to use all diplomatic means at its disposal to make the project a reality. But it took no responsibility - to pay the cost of hundreds of millions - if its diplomatic means did not yield results.
Under these circumstances, CERA stated that it will not change its existing regulatory decision, which provides that it "may" allow recovery of the implementing body's costs if the project sinks with third party responsibilities. The EU and IPTO demand that the 'may' be removed. A formal decision has not been taken by CERA, but it is likely that its delay will allow time for governments and the European Commission to manage the hot topic of geopolitical risk themselves, before the regulator announces its negative decision.
Fileleftheros reports that the Cypriot government agrees with CERA's position that the cost of geopolitical risk should not be passed on to consumers. Apparently he will have to officially announce it in the next few hours or days.
