THE UNIONS of the Cyprus Electricity Authority (EAC) have reacted angrily over what they claim are government attempts to marginalise the organisation from natural gas production.
A statement released by the four unions representing EAC employees yesterday criticised both their employer as well as the government, accusing them of mismanagement.
The statement declared that the government should abandon plans for a temporary offshore unit for natural gas run by a private company, as well as calling on the EAC itself to sign an agreement for the supply of natural gas without using any mediators or intermediaries.
A 2003 government pledge that part of the island’s electricity would be produced by natural gas by 2009 now seems increasingly unlikely. In trying to keep with this deadline, the government has taken it upon itself to enter into an agreement for the production of natural gas with another company, rumoured to be Norwegian company Golar Energy, reducing the role of the EAC to a buyer and not a producer.
The move has enraged the unions, who called on the government to change their policy.
“The state has to discard this neoliberal approach to natural gas provision. It has an obligation to create a permanent structure that will be regarded as a national asset and enhance the country with long-term economic benefits, while above all succeeding in the constant supply of natural gas,” their statement read.
The EAC was not exempt from criticism by the unions either.
“We regard the [EAC’s] handling of the matter up until now as insufficient and one that opposes the interests of the organisation and consumers. The EAC should have secured deals for the origin of the natural gas when it had signed agreements for the creation of these natural gas units,” the unions said.
At the moment, the Electricity Authority is constructing a fourth unit for natural gas, without securing any agreement for where the gas would be coming from.
“The fourth unit will be operational by 2009. We do not have an agreement over natural gas, but are currently in discussions about this. These units are dual firing and can use natural gas and diesel.
“At the moment they are working with diesel at peak hours, to cover the island’s electricity need, but it is quite expensive,” Giorgos Petousis, EAC Customer Services Executive Manager, told the Mail yesterday.
According to Petousis, the EAC is willing to examine any other possible solutions for the time being.
“The creation of an onshore unit is a permanent and better long-term solution. However, if there are any other suggestions from the government that are beneficial to the EAC and its employees as well as the general public, we will definitely look into it. We do want to find a compromise,” he added.
Petousis said that despite the fact that the creation of an offshore unit would be much easier to create, as it is much more flexible, an onshore construction is a permanent method that has been tried and tested.
Chairman of the EAC, Charilaos Stavrakis said yesterday the Authority would be setting their own terms that would protect the interests of the EAC and the Cypriot community during a meeting between all parties on Monday. He added that given that the EAC was the most important player in the field of natural gas, it should have a central role in decision-making.
The increasing demand for natural gas worldwide has been brought about by its environmental advantages such as lower emissions for domestic energy consumption as well as price advantages over liquid fuels.
According to the 2006 International Energy Outlook, the demand for global gas is predicted to grow by 2.4 per cent every year, accounting for more than a quarter of the world’s energy consumption by 2030.
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