Commission and former minister dispute energy price concerns over Great Sea Interconnector

Nicosia, Cyprus. The European Commission and former energy minister George Papanastasiou disagreed with Energy Minister Michael Damianos’ assessment that the planned Great Sea Interconnector between Cyprus and Crete could increase consumer electricity prices.

Damianos said the project would provide significant electricity to Cyprus but would not necessarily reduce prices.

Commission position

A European Commission spokesperson said that increasing electricity interconnections helps reduce energy prices by enabling the integration of more renewable energy into the system.

The spokesperson said improved interconnectivity is essential in the European Union to lower energy prices for citizens and industry and to strengthen energy independence.

Former minister’s view

Papanastasiou said opening a small market to competition requires access to as many energy sources as possible.

He said that a competitive market with more domestic and external energy providers, including suppliers connected through an interconnection cable, would create incentives for providers to offer lower prices to consumers.

Papanastasiou said the studies he reviewed while serving as minister indicated that the interconnector’s construction would reduce consumer prices. He said he did not know the basis for Damianos’ statement.

Government participation

Damianos also said the government’s decision on whether the Republic of Cyprus will participate in the project as a shareholder will depend on the findings of a due diligence study being carried out by the European Investment Bank.