Vasilikos power station is gone. Tough times for Cyprus ahead

Cyprus Mail reports that Vasilikos power station was completely destroyed by the explosion.  But we already sort of knew that.  The questions were more along the line of “What now?”.  Cyprus Mail provides some good analysis as to how this will affect Cyprus in the nearest future.

However the cost of this explosion does not just affect in terms of rebuilding, compensating and repairing. The dynamic effects on companies will ensure a return to deep recession, especially if you factor in the effects of the electricity crisis is having in Cypriot companies. The electricity shortage causes three devastating blows to our economy: reliability, capability and cost.

The lack of reliability in electricity provision is a great drag to the economy. Already power cuts are taking place and sadly it seems that since our electricity system is operating at full capacity the authorities have not been able to announce when and where such cuts should occur. As a result business are already suffering from lost labour time, repairing software and hardware issues relating to cuts, and an ever greater need for technical support, all in a period where the focus has been to cut costs and thus remain competitive with other European companies.

Read the full article for more.