Auditor General expresses concerns over Cyta's entry into the energy market

On March 10, Cyprus Auditor General Andreas Papaconstantinou sent a letter to Finance Minister Makis Keravnos regarding a bill that would allow state telecommunications provider Cyta to engage in energy-related business activities. The Auditor General cautioned that it is misleading to suggest that Cyta's entry into the sector would lower electricity costs for consumers. Papaconstantinou highlighted two primary risks associated with the proposal. First, he expressed concern that the European Commission might view the move as increased state intervention rather than an enhancement of market competition. Second, he warned that Cyta's involvement could lead to harmful competition with the Electricity Authority of Cyprus (EAC), potentially causing financial damage to the state electricity provider. The Auditor General noted that the current high cost of electricity in Cyprus persists despite the introduction of a competitive market in October. While some proponents argue that allowing Cyta to enter the energy market would help the organization retain customers through bundled services, the Audit Office maintains significant reservations about the policy's overall impact.