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Lawmakers voiced heavy criticism over the state’s handling of the island’s energy strategy on Thursday, warning that severe electricity deficits could hit Cyprus by the end of the decade if alternatives to the stalled Vasilikos liquefied natural gas (LNG) terminal are not secured.
The House Audit Committee met behind closed doors to review the Auditor General’s 2024 report on the terminal. The session was closed to the public to safeguard the Republic of Cyprus during active, high-stakes arbitration proceedings currently taking place in London against the Natural Gas Public Company (DEFA).
Opposition leaders and committee members described the grid’s reliance on outdated infrastructure as a critical vulnerability. Akel Secretary General Stefanos Stefanou characterized the project management as one of the country's most significant institutional failures, pointing directly to decisions made during the previous Anastasiades administration. He noted that the grid faces a substantial deficit because 720 megawatts of generation capacity must be decommissioned by late 2029. This includes the planned shutdown of generators at Dhekelia and three specific units at Vasilikos.
Without the introduction of natural gas to power generation, Stefanou stated that replacing this lost capacity would require financially painful emergency measures. He noted that between 2018 and the first half of 2025, Cyprus spent €1.2 billion solely on greenhouse gas emission fines, costs that are passed directly onto consumers through elevated electricity bills. Stefanou criticized the current Christodoulides administration for acting too slowly to manage the fallout of the collapsed contract, stating that the executive branch must take immediate responsibility for securing supply and stabilizing the network.
Democratic Rally (Disy) MP Giorgos Pamboridis agreed that the threat to electricity supply is now immediate, pointing out that the public has seen no encouraging progress on the project over the last three years. Pamboridis argued that the failure to complete the terminal shows a clear breakdown in state procurement processes. He urged the Treasury to reform how major infrastructure projects are assigned and supervised, suggesting that contracting authorities need shorter, more flexible procedures to prevent systemic delays.
Pamboridis, who recently resigned from a law firm representing the state infrastructure company ETYFA in the London arbitration to avoid a parliamentary conflict of interest, stated that political accountability for the delay is undeniable. He added that the European Public Prosecutor's Office (EPPO) is already reviewing potential criminal or financial misconduct surrounding both the Vasilikos terminal and the separate electricity interconnection project.
Further criticism came from Odysseas Michaelides, head of the Alma party and former Auditor General, who stated that while the current government inherited the problem, its subsequent management has allowed the crisis to grow. Michaelides pointed out that despite administrative assurances that a new tender for the terminal would be launched in the summer of 2024, officials are only now preparing to issue a call for bids next month.
Following the project review, Michaelides announced plans to table a legislative initiative next week to formalize the accountability of the Audit Office to parliament. The proposed bill aims to establish a management steering group within the Audit Office to create internal institutional checks and balances, drawing on recommendations previously made by British administrative experts.
