President Blocks Law on Solar Energy Surplus Compensation

Christodoulidis cites constitutional concerns and risk to public finances in referring legislation back to parliament

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President Nikos Christodoulidis has referred back to parliament a law on compensation for surplus energy generated by photovoltaic systems, citing serious constitutional objections and requesting that the House reconsider the legislation.

The law, put forward by DIKO MP Michalis Giakoumis, would require the Cabinet to issue a decree correcting distortions in existing domestic solar panel schemes, so that surplus energy fed into the grid is compensated rather than written off.

In his referral, the President argues that the law obliges the Cabinet to determine, by decree, a method of compensating surplus energy while simultaneously excluding the possibility of recovering that cost through the electricity market. This, he contends, would inevitably burden the state budget in breach of Article 80 of the Constitution, which prohibits parliament from imposing expenditure without the consent of the executive.

The President also identifies a problem of retroactivity, noting that the law extends to support schemes that were already in place before its entry into force. He further raises a separation of powers concern, arguing that the legislature is encroaching on powers that fall within the Cabinet's remit.

Additionally, Christodoulidis notes that the measure affects the existing framework for self-consumption support and creates conflicts with current energy policy provisions. He closes by calling on parliament to accept the referral and review the legislation.

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