The threat of rolling blackouts across Cyprus has been temporarily averted after trade unions at the Electricity Authority of Cyprus (EAC) agreed to suspend indefinitely planned strike action for 15 days.
The decision came after the Cyprus Transmission System Operator (TSOC) warned that the industrial measures, scheduled to begin on Thursday, could lead to significant electricity shortages and force authorities to impose rotating power cuts during peak demand periods.
The operator had warned that electricity supply deficits could occur daily between 5:30 p.m. and 1 a.m., with the greatest pressure expected between 7:30 p.m. and 9:30 p.m., when household electricity consumption is at its highest.
Next talks scheduled for July 22
Following a meeting on Tuesday at the Presidential Palace between the leaders of EAC's four trade unions, Energy Minister Michalis Damianos, Deputy Minister to the President Irene Piki and EAC chairman George Petrou, the unions agreed to suspend strike measures until July 22.
The government was given time to return with specific proposals addressing concerns raised by the unions over electricity prices and long-term energy security.
EPOPAI president Kyriakos Tafounas said the unions would decide on their next course of action once those discussions are completed.
Union representatives had already indicated earlier in the day that strike action was not their ultimate objective and that they were seeking meaningful engagement from the government on key issues affecting the sector.
Unions warn of future capacity shortfalls
The unions argue that Cyprus faces a serious electricity adequacy challenge in the years ahead because of the lack of a realistic long-term energy strategy.
They point to the planned retirement of EAC's ageing generation units at Dhekelia in 2029 and the possible closure of three polluting steam turbines at Vasiliko, developments they say could create a generation shortfall of around 770 megawatts.
According to their estimates, available generation capacity would fall to approximately 520MW, including two new 80MW units ordered for Dhekelia, while summer demand could approach 1,300MW.
Even if the Vasiliko natural gas terminal is completed by 2029, allowing currently idle generation units to enter service, union officials argue that supply would still fall short of expected demand. They estimate total available generation would rise to around 960MW, still below projected peak requirements.
While energy storage projects planned in the coming years could ease pressure on the system, they say these measures alone will not solve the problem.
Call for urgent action on energy policy
According to Tafounas and SEPAIK president Marios Pappoutis, the decision to escalate industrial action, following three work stoppages earlier this year, was intended to send a clear political message.
They argue that successive governments have failed to develop a coherent strategy for the country's energy transition and that urgent decisions are needed to secure lower electricity costs and a more reliable energy supply.
The unions maintain that current shortcomings in energy planning are ultimately being paid for by workers, consumers and the wider economy.
Push for changes to the electricity market
The unions are also calling for changes to the structure of the competitive electricity market.
They want electricity generated from renewable energy sources to be treated separately from conventionally generated power, arguing that the current model prevents consumers from fully benefiting from the lower production costs associated with renewables.
Pappoutis said allowing EAC to purchase renewable electricity from private producers and incorporate it into its own energy mix would help reduce electricity costs for most consumers.
The unions also support allocating state-owned land to EAC for the development of additional solar energy projects.
Broader concerns over EAC's future
Beyond wider energy policy issues, the unions remain concerned about the future of the organisation itself.
They continue to oppose the decision allowing Cyta to enter the renewable electricity market and argue that EAC was required to invest substantial sums in infrastructure linked to the planned introduction of natural gas, much of which remains unused.
Union representatives also claim that repeated policy interventions have limited EAC's ability to recover legitimate operating costs, placing additional pressure on the organisation's finances.
For now, however, the immediate prospect of power cuts has been pushed back, with all sides expected to return to the negotiating table later this month.
