CERA convenes to revise regulatory framework for Great Sea Interconnector

14:43 - 20 September 2024

Economy Reporter

The Cyprus Energy Regulatory Authority has convened in a meeting expected to approve the revised regulatory framework governing the €1.9 billion subsea cable linking Cyprus and Greece as the Great Sea Interconnector.

The 20 September meeting came after Cyprus President Nikos Christodoulides met with Greek Prime Minister Kyriakos Mitsotakis in Athens on 19 September affirming Cyprus’ political commitment to enter the capital of the project promoter with a €100 million equity investment as soon as possible after the completion of a due diligence check and the establishment of a special purpose vehicle (SPV) for which deliberations are at an advanced level involving third countries.

Inter alia, the amendments to the regulatory framework and the Cross-Border Cost Allocation (CBCA) will included a risk allocation of 50% between the consumers of the two countries countries in case the project cannot be completed due to geopolitical risks, whereas the operational cost during the cable’s operation will also be allocated equally by 50% compared with the current provision of 63% for the Cypriot electricity consumer and 37% for Greek electricity consumers.

Furthermore, during the construction period, that is from 1 January 2025 to 31 December 2029, the allocation of the capital expenditure will remain at 63% for Cypriot consumers and 37% for Greek consumers.

On 17 September the Cabinet in Nicosia decided to cover the potential increase on electricity bills during the construction period with €25 million per annum with a strict ceiling of €125 million for the five-year period.

(Source: CNA)

CERA convenes to revise regulatory framework for Great Sea Interconnector

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