The project of the Greece-Cyprus electricity interconnection is on track as the pending issues seem to have been finalized. According to sources, the Ministry of Environment and Energy is about to submit an amendment to the Parliament for the equal distribution of the geopolitical risk to the consumers of the two countries.
The submission of the amendment to the Parliament, as reported by competent sources, was scheduled to take place late Tuesday or early Wednesday.
The Greek side has decided to act in this regard a few days ago, given that the regulation was changed at the request of the Cypriot side, rendering Cypriot consumers as the main beneficiaries with a ratio of 63% and Greek consumers with 37%.
It is noted that the regulation concerns the inevitable scenario that the project is blocked for reasons of force majeure and through no fault of the implementing body (IPTO) and therefore the latter can recover the costs it has paid up until then. Based on the new arrangement, as soon as it receives the relevant approval from the Greek parliament, IPTO will proceed with a 50%-50% distribution.
The bad scenario
In case that things take a negative turn and the project is blocked, the Greek state will subsidize the additional cost on Greek consumers. The government’s choice to bring the issue to the Parliament is because it considers that its geopolitical importance requires the approval of the Parliament.
According to government sources, Athens wants to send a message that it is not afraid of the risk, but also that it has a very strong position in matters of International Law.
Based on the latest developments, competent sources reported that IPTO will give the “Final Notice to Proceed” to Nexans in time so as not to activate the clause that foresees a 1 million euro additional burden on the project for the time it remains in suspension and is not executed.
