EAC rejects claims it is blocking rival power plant

The Electricity Authority (EAC) on Thursday hit back at reports that it’s blocking the operation of a key infrastructure of a private power station located near its own Vasiliko plant, insisting that the rival facility lacks the necessary permits. In a press release, the EAC was answering reports in the press this week, to the effect that it’s hampering the coming online of the private power station belonging to PEC (Power Energy Cyprus) Ltd – a Cyfield group company. The same reports accused the EAC of deliberately strangulating the competition, at a time when the island could use an extra power station expanding electricity capacity overall. The PEC power plant – not yet operational – has a nominal output of 260 megawatts. PEC says their facility is ready to go, but that one issue remains outstanding – a pumping station which would discharge processed seawater back into the sea. Per standard practice, the power plant would draw seawater used to cool the turbines and then discharge the processed seawater at a different location. The discharged seawater is hot. The issue is that the PEC pipes discharging the seawater are located on a land plot (state land) that is leased to the EAC. In addition, the pipes’ location is in close proximity to where the EAC itself draws seawater to cool the turbines at the Vasiliko plant. The Cyprus Mail understands that the PEC pipes run through a plot of land cutting across the Mari naval base, ending up on the shoreline inside the EAC plot. It’s also understood that the EAC’s lease on the land plot in question expires in about two years. In its statement, the EAC reiterated that PEC’s pumping station lacks the necessary permits – zonal and environmental. Moreover, PEC did not get the EAC’s permission to situate the pumping station on their plot of land. As such, said the EAC, both the pumping station as well as the discharge pipes are illegal. The state-run power utility has another objection: were the PEC discharge pipes allowed to operate, they would pump hot water into an area from where the EAC itself draws seawater to cool the Vasiliko turbines. And that would impact the proper functioning of the Vasiliko station. “The EAC adheres to all procedures and regulations provided by law and secures all required permits when implementing any project. Others should do the same,” the statement read. The EAC asserted that it “never obstructed, nor has any intention to obstruct, healthy competition”. But it added: “What the EAC will not tolerate – and reserves its legal rights – is for the organisation to be slandered with groundless accusations and characterisations.” The dispute between the EAC and PEC has been running for some time. In a previous report, the auditor-general had flagged irregularities with the private company’s pumping station. In addition, the PEC power station itself is said to lack full permits, even though the company insists all the paperwork is in order. An EAC source told us that their position is that the PEC pumping station should be dismantled. Asked whether the EAC might sub-let the land plot to PEC, the source said no as the land is owned by the state. It was not possible to immediately verify this. For its part, PEC argues that the land plot is idle – the EAC is doing nothing with it.