EAC refutes claims by PEC regarding delays in energy market competition

The Electricity Authority of Cyprus (EAC) has formally responded to allegations made by the private firm P.E.C. Powerenergy Cyprus Ltd (PEC), which claimed that the EAC is deliberately hindering the entry of new power generation capacity into the market to maintain its dominant position and keep electricity costs high. The EAC has rejected these accusations as inaccurate and defamatory, stating that its actions are consistent with its operational and legal obligations.

A central point of the dispute involves plot number 558, located at the southwestern border of the Vasiliko Power Station. The EAC asserts that this land is under a long-term lease held exclusively by the Authority to serve the needs of the power plant. According to the EAC, PEC has constructed a seawater pumping station on this plot, which the Authority characterizes as an illegal intervention. The EAC maintains that it continues to exercise full rights of use and exploitation of the property, emphasizing that maintaining an isolation strip around the power plant is a standard international practice to ensure security and minimize environmental impact.

While the EAC defends its position, the conflict highlights ongoing tensions regarding the deregulation of the Cypriot energy market and the integration of independent power producers. As of late August 2026, the dispute over land use remains a primary point of contention between the state utility and the private competitor.