Cabinet to reconvene on GSI electricity interconnection

The Cabinet will reconvene to continue discussing the Great Sea Interconnector on 5 September, Government Spokesperson Konstantinos Letymbiotis has announced.

He was speaking at the end of the 4 September Cabinet meeting, adding that this is a continuation of the long discussion that has already begun in order to examine all the parameters of the issue.

"As a responsible Government with due diligence and responsibility, we have to assess all the parameters when and if the responses to the requested clarifications are received, and on the basis of these clarifications, an informed, responsible decision will be taken of not burdening electricity bills additionally before the completion of the project," he said.

Asked about the progress of consultations within the Cabinet, Letymbiotis said the issue had been the subject of a lengthy meeting since this morning in the presence of the Attorney General and the Assistant Attorney General, adding that clarifications have been requested on the issue and depending on the responses, final decisions will be taken.

"Any decisions by the RoC will be taken serving the main objective that has been set, namely not to burden electricity bills with additional amounts before the completion of the project, where the benefit for the Cypriot consumer will be derived," he said.

Asked if the clarifications that have been requested relate to the approval of the specific decision by the Parliament, the Spokesperson said that teleconferences have been held recently with both the Greek Government, as well as the European Commission and the European Investment Bank, adding that what is of paramount importance at this moment is to ensure that the project will work for the benefit of the Cypriot consumer.

Asked about the reactions that have been expressed recently about the project and whether energy prices will eventually be reduced with its completion, Letymbiotis said that the project in question was launched in 2012, adding that the Government has been following with interest positions expressed on the usefulness or value of the project, often diametrically opposed even among the same persons compared to a few years ago.

He noted that the Government's goal is to reduce the price of electricity, which he said can be served first and foremost by accelerating the penetration of renewable energy sources, while the second pillar includes the arrival of natural gas and the third concerns electricity interconnections.

"I think that as far as the usefulness or value of the electrical interconnections is concerned, no one disagrees that they will be a catalyst when and if an electrical interconnection of our country is completed in order to end Cyprus' energy isolation and certainly for the reduction of electricity prices," he said, adding that the benefit to the Cypriot consumer should be taken into account and that is what is being assessed.

"As a responsible Government, with due diligence and responsibility, we have to evaluate all the parameters when and if the responses to the requested clarifications are received, and on the basis of these clarifications, an informed, responsible decision will be taken with the aim of not burdening electricity bills additionally before the completion of the project," he noted.

Asked whether the postponement of today's Cabinet meeting was related to the need for additional contacts with the relevant bodies, including the Law Office, Letymbiotis said that important parliamentary committees were scheduled for Wednesday morning in the House of Representatives where members of the Cabinet would be present, and it was considered that due to the importance of both the debate on the electricity interconnection and the institutional reform framework that there should be enough time for discussion.

He added that there was an ongoing lengthy discussion on the electricity interconnection which should and had to be completed before the issue could be presented and discussed before the Cabinet.

Asked if the Finance Minister expressed reservations about the agreement in principle that has reportedly been reached on the project, Letymbiotis said he could not comment on information he was not aware of, adding however that it is legitimate and self-evident that each ministry should position itself on the basis of its own portfolio and responsibilities and that this is the discussion that is before the Cabinet.

To a question whether extended legislative regulation is required to approve the decision of Cyprus' participation in the project, Letymbiotis said that there are issues concerning the regulatory authority that do not require regulation, while there are also issues that if they involve costs for the state budget, a decision should be taken by the Parliament.

Asked if there is an obligation for all member states by 2029 to cover 15% of their energy needs from interconnections, the Government Spokesperson said that the EU's goal by 2030 is for all member states to be interconnected with each other.

He added that the RoC is currently the only isolated member state and that is why the goal of the electrical interconnection is important and the project is among the projects of common interest for the European Commission and has received specific funding.

(Source: CNA)