Filenews 20 February 2026 - by Charalambos Zakos
The climate between the two largest semi-governmental organizations in Cyprus cannot be described as particularly positive after Cyta's request to enter the energy sector and while recently there has been a process of readjustment and redistribution of their activities, since it seems that both the EAC and Cyta aim to expand their presence in services and state infrastructures where until recently their involvement was either non-existent, or relatively limited.
Specifically, the Cyprus Telecommunications Authority (Cyta) and the Electricity Authority of Cyprus (EAC) are preparing to enter the trenches on the occasion of Cyta's claim to enter the energy sector and while the EAC at the same time is looking at its further penetration in water production.
Although in the previous days the administrations of both Cyta and EAC tried to keep a low profile before the Parliament during the discussion of the relevant bill, leaving open, but remote, the possibility of cooperation, nevertheless, the statements of the secretary of SIDIKEK-EAC, Dimitris Constantinou, to the Cyprus News Agency, on behalf of all the EAC trade unions (EPOPAI, SIDIKEK, SEPAIK, SYBAIK) show that the tension not only has not been eased, but is expected to escalate, at least on the part of the Authority's trade unions.
"They entered their fields"
The EAC trade unions had been collecting various things for some time. The first reactions had focused on the decisions of CERA that essentially left the Authority out of the Renewable Energy Sources market. However, what seems to have broken the camel's back is the bill that paves the way for Cyta to be active in the sale of electricity and while, as "F" is in a position to know, the EAC's opposite request, i.e. for its penetration in the telecommunications sector, was blocked.
Essentially, at the moment, the EAC trade unions believe that in addition to the involvement of private individuals with the opening of the market, they are now called upon to face competition from a second semi-state organization that wants to operate in the sector that belonged entirely to the Electricity Authority of Cyprus until recently.
Less revenue, fixed expenses
In essence, the EAC trade unions are not only concerned about the risk of blackouts and this is something that should be noted, but also accepted by the trade unions themselves.
The entry of private individuals and Cyta into the production and supply of energy is estimated to directly affect both the EAC's finances and its employees.
In particular, the entry of private companies and semi-public organizations into the production and supply of energy means one thing in short. Fewer customers for the EAC and while inelastic spending will remain. This, according to the same estimates, may lead to an increased financial burden for consumers who will remain with the Authority, but also to pressure on staff, and even to the elimination of jobs.
To make it easier to understand, let's take an example with fictitious numbers: If the EAC currently covers monthly expenses of one million euros with an equal number of customers, the cost per consumer corresponds to one euro. In case the number of customers is halved, due to a move to private providers or Cyta, the corresponding cost will be doubled. At the same time, the reduction of the clientele is estimated to bring about a restructuring in the way the Authority operates and possible changes in the employment status of the staff.
Cyta wants to sell electricity and EAC wants to sell water
What should be underlined is the particular interest of the picture that is formed around the strategic choices of the two largest semi-governmental organizations of Cyprus. At a time when the Cyprus Telecommunications Authority seeks to enter the electricity market, the Electricity Authority of Cyprus is turning, in parallel – and more intensely – towards the water sector.
This is also noted by the EAC unions in their statements, even saying that the EAC has asked for permission to proceed with new desalination plants. It should be noted that although it is not widely known, the Electricity Authority is already active in this sector. In particular, the EAC has been operating for years one of the largest desalination plants in Cyprus, in Vasiliko. At the same time, according to what the chairman of the EAC Board of Directors, Giorgos Petrou, said in a recent intervention on RIK radio, within the next period the operation of a new desalination plant with a capacity of 10,000 cubic meters per day is planned, with the prospect of doubling its production capacity.
Cyta's Board of Directors: We need to modernize
The Board of Directors and the Management of Cyta, in response to everything that has been reported in recent days, issued a relevant press release, expressing the position that the discussion on the amendment of the law governing the operation of the Organization concerns the need to modernize a framework that has remained unchanged for decades, in contrast to other public law organizations that have had broader and more flexible institutional capabilities for years. According to the organization's Board of Directors, the convergence of technology, energy and related services is already a European reality, which requires adaptation to an environment of rapid change.
Cyta, according to the Board of Directors, systematically monitors international developments and examines ways to utilize its know-how and infrastructure for the benefit of consumers and the country, always within an institutional framework. In this light, it calls for equal institutional treatment and the same flexibility enjoyed by other organisations and private providers, which have the potential to operate in multiple sectors.
Regarding energy, it is emphasized that the strategic objective focuses on specific market segments, mainly consumers who do not have access to Renewable Energy solutions, such as tenants, residents of apartment buildings and small businesses. Cyta believes that energy is now a critical strategic factor for its sustainability and competitiveness, while its entry into the sector is expected to boost the overall development of RES.
In conclusion, the Board of Directors warned that the rejection of the modernization bill would have serious consequences for the course of the Organization, creating conditions of unequal competition, despite the institutional responsibility and the public character of Cyta.
