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7 May 2026
Court rules Dhekelia power plant compensation law unconstitutional in Cyprus

Dhekelia, Cyprus. Cyprus’ Supreme Constitutional Court has ruled that a law allowing compensation to be paid to communities neighbouring the Dhekelia power plant contradicts the Constitution and cannot be issued.


Referral process and parliamentary timeline

The court said the law was passed on October 6, 2025, and sent to President Nikos Christodoulides, who referred it back to the House on October 17, 2025. On October 30, 2025, the House decided to insist on its initial position, prompting the president to refer the law to the Supreme Constitutional Court.

Court findings on powers and fiscal policy

The court ruled that the Electricity Aurhority (EAC) is directly linked to the state and, as a state organisation, falls within the scope of the cabinet’s authority in drafting the state’s fiscal policy. It said the law concerned the supervision and allocation of property belonging to the Republic, an authority exclusive to the cabinet.

Budget allocation and separation of powers

The court found that setting an amount in the EAC budget to be paid to communities deviated from the authorities of the House. It said the EAC’s discretionary power to allocate the amount did not negate the intervention of the legislative authority in the executive authority.

Constitutional provisions and affected communities

The court found that clauses of the law contradicted provisions of articles of the Constitution by circumventing the constitutional principle of the separation of powers. The law provided for assistance of no more than €13,700,00 to be paid to the communities of Achna, Xylotymbou, Xylophagou and Ormidia, including the latter’s refugee settlement.


How do you think the government should address support for communities neighbouring the Dhekelia power plant following the court ruling?

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