A law passed by parliament and referred by President Nikos Christodoulides, allowing compensation to be paid to communities neighbouring the power plant in Dhekelia, has been found to contradict the Constitution, it was reported on Thursday.

The Supreme Constitutional Court had been tasked to rule on the law providing for financial assistance to be paid to those communities.

In its ruling on Wednesday, the court said the law had been passed on October 6, 2025, and sent to the president, who referred it back to the House on October 17, 2025.

On October 30, 2025, the House decided to insist on its initial position, prompting the president to refer the law to the Supreme Constitutional Court.

The court ruled that the Electricity Aurhority (EAC) was directly linked to the state and as a state organisation fell within the scope of the cabinet’s authority in drafting the state’s fiscal policy.

The referred law concerned the supervision and allocation of property belonging to the Republic, an authority exclusive to the cabinet.

Furthermore, an amount in the EAC budget to be paid to communities deviated from the authorities of the House.

The court found that the EAC’s discretionary power to allocate the amount did not negate the intervention of the legislative authority in the executive authority.

It also found that clauses of the law contradicted the provisions of articles of the Constitution, by circumventing the constitutional principle of the separation of powers, and accordingly could not be issued.

The referred law provided for assistance of no more than €13,700,00 to be paid to the communities of Achna, Xylotymbou, Xylophagou and Ormidia, including the latter’s refugee settlement.