The plenary session of Parliament unanimously passed an emergency bill yesterday, canceling the contract awarded by the Electricity Authority of Cyprus (EAC) to Cyta for the supply and installation of 400,000 smart electricity meters. The bill was urgently submitted due to the risk of EAC losing €35 million from the Recovery and Resilience Fund for not installing the smart meters.

On March 26, the Administrative Court decided to cancel the tender, stating that the provisions of the Telecommunications Service Law "restrict the powers and responsibilities of Cyta to telecommunications and telecommunications services," which are "limited to communication between people and not devices." Cyta has appealed the initial decision.

The purpose of the law is to amend the Telecommunications Service Law to clearly define the general functions of Cyta, considering modern challenges and the competitive environment. This amendment aims to provide the Authority with the necessary flexibility and speed while maintaining its public character.

Specifically, the law allows Cyta to undertake, either directly or through other entities, activities related to exploiting its assets, capital, technical or commercial capabilities, facilities, services, and expertise when such activities are deemed necessary and beneficial for the organization.

The approved law enables Cyta to participate in parallel markets or activities related to communications, media, information technology, and other similar sectors.

A second part of the bill, which further extended the scope of Cyta's operations, was not voted on today as it was not deemed urgent. However, the MPs committed to reviewing it with the required procedures after the Parliament resumes its sessions.