Supreme Constitutional Court rules compensation law for Dhekelia communities unconstitutional

The Supreme Constitutional Court of Cyprus has ruled that a law intended to provide financial assistance to communities neighbouring the Dhekelia power plant is unconstitutional. The legislation, passed by the House of Representatives on October 6, 2025, proposed allowing the Electricity Authority (EAC) to allocate up to €13.7 million for development projects between 2025 and 2035. President Nikos Christodoulides referred the bill back to parliament on October 17, 2025, but the House insisted on its initial position on October 30, 2025, leading to the presidential referral to the Supreme Constitutional Court. In its decision issued on Wednesday, the court determined that the law violated the constitutional principle of the separation of powers. The justices found that the EAC, as a state organization, falls under the executive authority of the Cabinet regarding fiscal policy and the management of state property. Therefore, the legislative branch exceeded its powers by dictating how the EAC should allocate its budget. The court concluded that the law, by bypassing executive control, cannot be enacted.