Papadopoulos to decide on LNG law to today

PRESIDENT Tassos Papadopoulos is expected today to announce his decision on whether to send back to Parliament a law barring the energy regulator from issuing private licences for natural gas supplies.

The law, passed by Parliament just before the holidays, stripped the Cyprus Energy Regulatory Authority of the ability to issue licences for private companies to trade in LNG until an exclusive supplier is established on the island.

The government fears the clause may violate the EU acquis by taking protectionism a step too far.

Government Spokesman Vasilis Palmas said the Cabinet discussed the matter during yesterday’s session and a decision was expected by today.

“The President has the final say, as provided by the constitution,” Palmas said.

“Today [Thursday] is the final day for him to decide and his decision will be published by tomorrow.”

If the president decides to refer the law back to Parliament, then the legislative body can either amend it or turn it down, which is more likely.

Papadopoulos must then either sign the law or refer it to the Supreme Court, which will have the final say on the matter.

The law passed by Parliament is the first step in declaring the Cypriot market ‘emerging’ – a status that allows the island to control supplies through the creation of a public utility company or a preferred supplier.

It will also allow the Electricity Authority to remain a key player in the energy industry.
The government has warned that Cyprus could be liable to fines if someone sought recourse in European courts.