The Cyprus Electricity Authority (ECA) has announced its decision to implement an increase in electricity prices for local consumers.
On Wednesday, June 11, the agency announced that the tariff increase would be 3%, instead of the originally planned 7.5%.
The EAC acknowledged the challenging economic climate in the country and has taken measures to reduce pressure on consumers.
At the same time, the organization's revenues are strictly regulated, and the tariff increase is driven by the need to offset rising costs associated with maintenance, modernization, infrastructure development, and the construction of new energy facilities.
The EAC has stated that the reliable operation and implementation of major projects to upgrade and expand the country's energy capacity is impossible without sustainable sources of funding.
The EAC also highlighted the necessity for investment in modern energy storage technologies, which are essential for the transition to a more sustainable energy system.
The price increase is driven not only by domestic demand but also by the overall transformation of Cyprus' energy market. The EAC is working closely with the Cyprus Energy Regulatory Authority (CERA) and the independent transmission system operator (TSO) to facilitate the transition to a competitive energy supply model. This necessitates more complex regulations and the adherence to international standards, which also requires additional investment.
Despite these challenges, EAC maintains an openness to dialogue with government agencies and the public. The organization emphasizes the importance of basing public discussions on verified data to prevent the spread of misinformation and panic.
Therefore, the rise in electricity prices is not a temporary measure, but rather part of broader structural changes affecting the entire energy system in Cyprus. While the recent increase may appear modest, experts caution that the population should prepare for additional tariff adjustments in the coming years due to the transition to a new energy reality.
It is important to note that electricity is one of the most significant expenses in Cyprus.
During the winter months, the cost of maintaining a one-room apartment can range from €200 to €300 per month, primarily due to the expenses associated with water heating and heating. During summer months, the amount is marginally lower. As Cyprus procures fuel oil for its power plants, the cost of electricity is directly influenced by fluctuations in oil prices. An increase in oil prices invariably leads to higher electricity bills, and vice versa.