MP claims ‘systemic fraud’ over electrical storage

An opposition MP on Tuesday claimed “systemic fraud” is in place to throttle electrical storage as well as the development of energy generated through renewables, with consumers saddled with high bills from electricity produced by conventional means.

Kyriacos Hadjiyiannis (Disy) made the remarks during a session of the House energy committee to discuss a bill he has co-sponsored proposing changes to the regulatory framework governing permits for renewables.

The session was attended by officials from the energy ministry, the attorney-general’s office, the energy regulator and the Transmission System Operator.

Speaking to the media later, the MP said “the institutional framework” is systematically obstructing amendments to the legislation aiming to crack down on “the black market of permits” in the area of renewables.

He said that whereas permits for renewables are approved on paper, most stay on paper – creating a backlog.

On electrical storage, the MP asserted that storage capacity does exist but is not being approved. In addition, wherever storage is available, it gets double-billed – during charging and then discharging. This brings about a 12 per cent increase in cost, he claimed.

Hadjiyiannis blamed “certain specific interests” for the current state of affairs.

“The only ones not benefiting are the economy and consumers.”

He went on to call the situation “provocative”.

And he dismissed as “excuses” the argument that the grid as it exists cannot handle more renewables.

Earlier, the MP had told Politis that authorities have long been aware that the grid needs substantial upgrades – but have done nothing about it.

These issues were identified as far back as 2019, he added.

He described it as “chronic inertia”.

He told the daily: “The state, successive governments as well as the party-political establishment are responsible for this inertia.

“And inertia equals mazut (heavy fuel oil) and, in turn, high revenue for the state through taxes, and at the same time it is protectionism in favour of the Electricity Authority of Cyprus. Everyone benefits at the expense of consumers.”