DAMIANOU ON GSI - WHY IT SHOULD PROCEED - WHAT IS THE FINANCIAL DIFFERENCE BETWEEN CERA AND IPTO FOR THE MONEY PAID - Filenews 19/10 by Eleftheria Paizanou
The issuance of NAVTEX is expected by the end of the month, when the works for the Cyprus-Greece electrical interconnection will resume, said the Minister of Energy Michalis Damianos. During the discussion of the budget of the Ministry of Energy for 2027 in the Parliament on Monday morning, he reiterated that after NAVTEX the amount of €25 million will be paid. to IPTO, as the first instalment of debts.
The minister also referred to the difference that exists between IPTO and CERA for the recognition of expenses incurred for the interconnection. As he said, the implementing body IPTO requested to be recognized (for future performance) an amount of €302 million, while CERA has so far recognized expenses of €82 million. and asks for additional information to justify another amount.
He also noted that the study by the European Investment Bank (EIB) on the updated data of the project is underway, pointing out that the state will pay €25 million. per year until 2029 (in total, 125 million), amounts that will not be directly burdened by electricity consumers.
The project will be completed in 2031
He also said that the electrical interconnection should proceed, pointing out that in case of an increase in the budgeted cost (€1.9 billion) other funding resources should be found. He also indicated that consumers will pay for the cost of the project over a period of 30 years, provided that the project is completed and there is electricity from the GSI.
At the same time, he noted that the project is estimated to be completed in 2031. He indicated that in case the project is not completed, the consumer will not be to blame, implying that there is also a legal way. As he explained, if the project does not go ahead, then it is expected that the case will be taken to the European Court. He stressed, however, that even if the project is not completed, there will be a cost for the state. Answering questions, he said that the possibility of the state being a shareholder in GSI will be considered later.
Vasilikos Terminal: The award in the summer
In relation to the Vasilikos terminal, he noted that its completion is a one-way street, adding that it is an important project for the state. According to the Minister of Energy, the arrival of natural gas will contribute to the reduction of electricity. As he said, before the summer of 2027, the tenders are expected to be awarded.
"In 2030 we must have natural gas in Cyprus, otherwise we will have a problem of electricity adequacy," he added.
According to the Minister of Energy, thoughts are being made about the exploitation of deposits of the Republic, pointing out that there is an agreement for the Aphrodite reserve to be exploited for commercial purposes in Egypt.
Regarding the issue of energy storage, as Mr. Damianous said, the plans are progressing. For the use of batteries by businesses, he noted that some legislative regulations are needed.
Fuel: We pay the lowest tax
Asked about the issue of fuel, he reiterated that there is no profiteering, stressing that Cyprus pays the lowest consumption tax on fuel. According to the Minister of Energy, the Government proceeded with the maximum tax reductions on fuel and electricity, stressing that Brussels - by the Minister of Finance - was asked to make further reductions.
E-kalathi, an upgrade
In relation to e-kalathi, the Minister of Energy is in a dialogue to upgrade it, with the inclusion of other products or services. Finally, he noted that the Consumer Protection Service is carrying out checks on the market to see if when the VAT reductions on various products were passed on to consumers.
