Cyprus cable slips to 2031

Cyprus's energy regulator told parliament on 20 October that questions it sent on 26 August about a planned stake sale in the island's undersea power cable to Greece remain unanswered. It also moved expected completion from 1 January 2030 to 1 January 2031 (Cyprus News Agency). The questions went to ADMIE, Greece's grid operator, which owns GSI, the company building the cable. Greece's government announced on 5 August that French investor Meridiam would become GSI's majority shareholder (Greek government).

The regulator is already deciding which cable costs can reach electricity bills. It still has not seen the deal that would show how much construction money Meridiam will put in.

Has anything been sold yet?

The regulators first need to know whether a sale has happened at all. Poly Lemonares, president of the Cyprus Energy Regulatory Authority (CERA), told MPs that ADMIE still holds both of the cable's licences, one to own it and one to operate it, and that nobody has applied to transfer either (CNA). Greece's August announcement published no price and no closing date (Greek government).

A September Philenews investigation reported that CERA had written jointly with Greece's regulator, RAAEY. The letter asked for the full agreement, whether any shares had already changed hands, what Meridiam paid or would pay, and how much construction capital each side would supply. Until ADMIE answers, the regulators cannot judge the deal.

The answers matter because of the regulators' own rules. GSI builds and finances the cable under a concession, a contract handed to it by ADMIE. Under a 2024 decision, both regulators must approve that concession before any outside buyer acquires GSI, and ADMIE must keep full control of and responsibility for the project (CERA decision 284/2024). A majority owner would normally expect to steer the company it owns. Only the agreement can show how Meridiam's stake fits with the control ADMIE is required to keep.

Funding is a separate question. Meridiam's planned stake is 66% of GSI's shares (CNA), but owning shares is not the same as paying that share of construction. Nothing published says how much equity, meaning the owners' own money invested in return for shares, Meridiam will commit. The project also relies on EU support, and the European Investment Bank had still not decided on a loan in August (Euronews).

Why the cable is late

The clearest reason for the delay lies on the seabed. ADMIE has not finished surveying the route. It also has not issued the Full Notice to Proceed, the instruction that triggers the rest of its contract with French cablemaker Nexans (ADMIE interim statements). Nexans applied in Greece on 15 October for permits to resume survey work (Reuters), in waters where Turkey has twice contested the survey notices (To Brief).

Who ends up paying

Electricity customers pay through their bills. Approved construction spending is split 63% to Cyprus and 37% to Greece. Each country recovers its share through network charges, the part of a power bill that pays for wires and cables rather than the electricity itself (CERA decision 284/2024).

CERA is not waving costs through. ADMIE asked it to recognise about €302 million of spending, and the regulator accepted only €82 million as properly documented (CERA decision 280/2025).

Waiting adds to the bill. Approved spending that has not yet been charged to customers earns an 8.3% financing return until it is recovered (CERA decision 280/2025). That return compensates ADMIE for waiting for its money, and customers pay it through the same network charges. A longer wait therefore means a larger eventual bill. CERA said in October it still cannot estimate the cable's final cost (Philenews).

Taxpayers carry a separate risk. Cyprus plans to pay €25 million a year from the state budget, with the first payment due once Greece issues a NAVTEX, the maritime notice that lets the surveys go ahead (Politis). That money comes from general taxes, not from power bills. Energy Minister Michalis Damianos says households will not pay through their bills if no power ever arrives, but he concedes the treasury could still lose money if the project fails (Politis).

Regulators are already deciding which cable costs customers will carry, and they are checking ADMIE's figures as they go. ADMIE has not yet shown them how much construction capital Meridiam will supply. The unanswered letter does not mean the deal has failed. Until ADMIE replies, though, nobody outside the signatories can say whether Meridiam brings money to build the cable or only a new name on the share register.