When it comes to the ramifications of the Mari blast on the island’s power supply, much of the focus this last year has been on the widespread anger over the crippling cost of electricity bills after the near destruction of Cyprus’ main power plant at Vassilikos.
In the wake of the explosion, electricity bills – already among the highest in the EU – became the most expensive among all 27 member states.
Acknowledgement of the efficient hard work carried out by electricity authority (EAC) engineers to rebuild Vassilikos and ensure a constant power supply under difficult circumstances has come a distant second to consumer resentment over bills.
Not surprisingly, this positive aspect of the whole tragedy is one the government has been eager to stress. Just last Monday on a visit to Vassilikos, Commerce Minister Neoclis Sylikiotis hailed the EAC for the “small miracle” of reconstructing damaged units at the plant and for keeping the power supply going.
But this optimism is a far cry from July 11 last year when shortly before 6 am the sonic boom from the explosion at the nearby naval base at Mari hit the Vassilikos power plant. The shockwave twisted and ripped metal sheets off the walls of the main building and caused parts of the roof to cave in. The guard on duty at the entrance suffered serious injuries and was rushed to hospital.
Several employees working the morning shift were treated for light injuries.
The building was pelted by flying shrapnel – mostly pieces of pipe and metal shards – believed to have been ejected from the munitions that exploded at the base, just 300m away. A fire broke out inside the administration building but was quickly put out. Other small outbreaks of fire occurred in the fields surrounding the building but were also extinguished by fire-fighters. Luckily, the fuel tanks at the site escaped the flames.
The force of the shockwave was such that it crushed the roofs of cars that were parked there.
Inside, extensive damage was caused to equipment. Units 1, 2 and 3 were virtually destroyed, while Units 4 and 5 were also badly damaged.
The effects were immediate. In Nicosia alone, the fire department received around 50 calls from people trapped in elevators, banks and shops were forced to close as power cuts shut down computers. Power-hungry desalination plants were taken offline – leading in turn to water cuts for 12 hours a day.
In the middle of the scorching heat, people were forced to be frugal with their energy consumption, while enduring regular two-hour cuts throughout the day.
The elderly, people suffering breathing problems, babies and pregnant women probably suffered the most.
Immediately after the blast, the EAC appealed to the public to keep electrical consumption at a minimum, and avoid using air-conditioning units in particular.
The maximum output of the two remaining power stations at Moni and Dhekelia was a mere 690 mw. Demand for that time of year was in the region of 1,200mw.
The blast brought an onslaught of additional costs for both the EAC and consumers with the EAC forced to rent generators, buy power from the Turkish Cypriots and pay for extra fuel costs, among others.
Part of the costs was covered by the ‘Mari surcharge’, a 6.96 per cent surcharge on electricity bills (recently reduced to 5.75 per cent).
Nearly a year later repair work at Vassilikos has ensured Unit 5 will be producing 220MW by August now that two gas turbines have been connected. Unit 4 is also expected to be partly functional in August. Together, the units – which suffered the least damage from the blast – will yield 450MW. Unit 3 will be restored by the end of the year and units 1 and 2 by May 2013. To make up the shortfall temporary power units have been set up to increase production at the ageing facilities. Electricity is no longer being bought from the north.
In March, the EAC announced it had signed a loan agreement with the European Investment Bank for €130 million to help get the Vassilikos station up and running again. This was in addition to a state guarantee agreement to the EAC, which saw the semi-government organisation secure a bank overdraft of approximately €30 million.
Attempts to receive funding from EU Solidarity Fund failed as the explosion was not a result of natural causes.
In January, insurance companies accepted liability claims for the costs of restoring the power station and interim payments by insurers started. Insurance payments would not be a lump sum but rather gradual payments for the cost of repairs. The final cost was estimated in the region of €300m to€350m.
It emerged that repairing the damaged power station would entail the largest single insurance payout in Cypriot history, with the largest one up to that point being some €15 million for the destroyed Pittas factory.
While there is still a long way to go, the power station is on the mend. For Stelios Stylianou, the EAC’s general manager, the progress is a source of real pride.
“The job that was done was huge with coordination and planning undertaken exclusively by EAC members,” he said this week. “I feel the need to say how proud I am of the EAC staff.”
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