Cyprus Regulatory Authority convened early on Friday in a meeting expected to approve the revised regulatory framework governing the pound 1.9 billion subsea cable liking Cyprus and Greece, titled ‘Great Sea Interconnector.’
The meeting comes after Cyprus President Nikos Christodoulides met on Thursday, in Athens, with Greek Prime Minister Kyriakos Mitsotakis affirming Cyprus’ political commitment to enter the capital of the project promoter with a pound 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 allo
cated 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 January 1 2025 to December 31 2029, the allocation of the capital expenditure will remain at 63% for Cypriot consumers and 37% for Greek consumers.
On September 17 the Cabinet in Nicosia decided to cover the potential increase on electricity bills during the construction period with pound 25 million per annum with a strict ceiling of pound 125 million for the five-year period.
Source: Cyprus News Agency