Fresh data from the Statistical Office of the European Union (Eurostat), published on Tuesday, May 5, revealed an unexpected energy trend. Cyprus ranked first in the European Union for the fastest decline in electricity prices. During the second half of 2025, prices on the island fell by an impressive 14.7% compared with the same period a year earlier. This was the largest decrease among all EU member states.
Leaders in Price Declines and Market Outliers
Thanks to this sharp reduction, Cyprus outpaced even countries traditionally known for efforts to lower utility costs. France ranked second, with prices down by 12.5%, followed by Denmark with an 11.9% decrease. However, the picture was far less positive elsewhere in Europe. While residents of Cyprus, France, and Denmark paid less, electricity bills reached record highs in other countries. The most dramatic increase was recorded in Romania, where prices surged by 58.6%. Austria and Ireland were also among the worst performers, with increases of 34.4% and 32.7%, respectively.
What the Figures Reveal: Purchasing Power Parity
When adjusted for purchasing power parity, the data becomes even more revealing. In Cyprus, by the end of the second half of 2025, the cost of 100 kilowatt-hours stood at €30.4. For comparison, consumers paid €32.1 at the beginning of the same year and €35.7 a year earlier. This means that the decline was felt by households across the island. The highest real prices in the EU were once again recorded in Romania, at nearly €50 per 100 kWh. The Czech Republic followed with €38.7. The lowest tariffs were maintained in Malta at just €14.1 and Hungary at €15.1.
The Overall Situation Across the European Union
Despite Cyprus’s strong performance and Romania’s sharp increase, average electricity prices across the EU remained almost unchanged. In the second half of 2025, the average cost was €28.9 per 100 kWh, only €0.1 higher than in the first half of the year (€28.8). This stability, however, is somewhat misleading. Eurostat experts attribute the slight increase to higher taxes and levies. Their share in the final bill rose to 28.9%, up by exactly one percentage point compared with the first half of the year. In other words, electricity itself could have become cheaper, but the tax burden increased.
What This Means for Consumers
If you live in Cyprus or are planning to relocate, this is encouraging news: the local electricity market is showing the most positive trend in the EU. For businesses and household budgets, this translates into tangible savings. The island’s authorities are likely to continue efforts to contain tariffs and preserve this leading position. Meanwhile, residents of Romania, Austria, and Ireland may need to prepare for utility costs to rise faster than inflation. In any case, the situation is evolving quickly, and Cyprus is providing an example of how energy costs can be reduced even during uncertain times.