Utilities of Cyprus

Power

Oil and gas exploration was under way in 2011 and large offshore finds of natural gas were announced in December 2011, amounting to an estimated 140–230 billion cubic metres, and further significant finds were announced in 2012.

Since its accession to the European Union, Cyprus’ energy policy has become fully harmonised with that of the EU. This involved the liberalisation of the country’s electricity market, opening up 35 per cent of the sector to market competition, ending the monopoly of the Electricity Authority of Cyprus (EAC/AHK). However, the EAC still dominates the sector in generation, transmission, and distribution and supply levels. Consequently, although some private firms have entered the generation sub-sector, competition remains relatively weak. Electricity production in Cyprus is generated almost entirely from oil. The Cyprus Energy Regulatory Authority is responsible for the regulation of the sector and ensures that EU requirements are met.

In January 2014, the board of the Cyprus’ Natural Gas Public Company (DEFA) approved a second tender for the short-term supply of natural gas. The tender invites proposals for supplying natural gas to the Vasilikos power station for a maximum period of ten years starting in January 2016. The first tender for the project was terminated in October 2013 as DEFA did not wish to proceed with any of the bidders.

Water

During the period 1960–96, ground water constituted the main source of water for both irrigation and drinking-water supply. This resulted in serious depletion and degradation of groundwater resources due to over-pumping and seawater intrusion. Confronted by this lack of water, the Ministry of Agriculture, Natural Resources and the Environment, through the Water Development Department has, since 1997, resorted to the use of non-conventional water resources, using measures such as desalinisation techniques, wastewater reclamation and reuse, and the utilisation of low-quality water. The Water Development Department is responsible for the management of the country’s entire water infrastructure and the implementation of policy relating to the water sector. Private-sector involvement in the country’s water sector is limited to the management of desalination plants on government contracts.

Telecoms

A 2008 survey of telecoms penetration in Cyprus showed there to be 451 main telephone lines, 1,179 mobile phone subscribers and 388 internet users per 1,000 people. The state-owned company Cyta provides most general telephony services while Cytamobile and MTN Cyprus provide mobile cellular service and have roaming agreements with most international phone companies. Internet is widely available, with the major internet service providers beingCytanet, Cablenet, PrimeTel, Valicom, Netway, OTEnet Telecom, Logosnet and Thunderworx. The Cyprus Telecommunications Authority is among the semi-governmental organisations listed for speedy privatisation and is due to be offered to a strategic investor in 2015, although its operations will not be separated.