Filenews 27 December 2025 - by Chrysanthos Manoli
The Cypriot Government feels, as does the Greek government, that some time has been gained by the decision to update techno-economic data on the electrical interconnection of the two countries, but in reality there are significant financial outstanding issues for IPTO that need to be closed soon.
In addition to the first and second instalments of €25 million that must be given to it by the Government through electricity tariffs (without directly burdening consumers), as provided for in the 2024 Understanding Framework, IPTO is additionally claiming a few tens of millions from the regulatory authorities (CERA and RAAEY).
In the foreground are the €19 million. Delays in carrying out maritime research in the area between the two countries. The French Nexans was supposed to carry out the surveys in 2024 and 2025, but in addition to the deep-sea surveys within the territorial waters of the two countries, it could not carry them out on time, due to Turkey's reactions on the sea field and in particular in the sea off Kasos - southeast of Crete. Those postponements led to an additional financial burden on Nexans, which claims this money (the so-called drops) from IPTO and he from the two regulators.
The information of Fileleftheros states that IPTO, away from the public eye, is still pushing to pay the €19 million, so that in turn it can pay the French company. For the time being, CERA has not made a decision to pay the amount, but it will obviously be called upon to make a decision soon. The Regulatory Authority appears to be concerned whether the Cypriot consumer should be burdened with the €19 million or at least the part of them corresponding to Cyprus based on the proportional allocation of costs (63%), since investigations were delayed or frozen without Cypriot responsibility.
At the same time, CERA will also have to make a decision on pending operating costs of IPTO, for the Great Sea Interconnector project. It is not clear what this amount is, but the information puts it at just over €10 million. In order to lock in the amount to be given to the implementing body as operating expenses, CERA is waiting for additional supporting documents, while at the same time it disputes the amount of some of IPTO's expenses.
We remind you that the payment to IPTO of the amount he had paid to the Cypriot EuroAsia Interconnector, in the summer of 2023, to take over the electrical interconnection himself, is also pending. IPTO submitted supporting documents that raise the amount it paid to EuroAsia to €48.8 million. But CERA, together with RAAEY, decided to approve only €12 million, arguing that the remaining amount does not concern the specific electrical interconnection, but mainly the electrical interconnection between Crete and Attica. IPTO strongly disputes the correctness of this decision and requested support from the Directorate General for Energy, of the European Commission.
One of the most important disputes concerns the amount justified by CERA as recoverable costs of the implementing body, during the execution of the project. IPTO claims that it has spent about €250 million on the project. But CERA approved only €82 of it, reserving the right to approve more when it receives additional payment documents. Regardless of the amount that will be gradually approved, IPTO will at best receive in the phase before the operation of the interconnection - until 2029 - only €25 million per year. Any other amount he is credited with will receive it after the operation of the GSI, if and when the project proceeds normally.
It should be noted that for the decisions of CERA with which it disagrees, IPTO has already appealed to the Administrative Court, requesting their annulment.
