Electricity is the most expensive item of expenditure in Cyprus. This is especially true during the summer season when the air conditioning is on all the time. Fortunately, the island nation's government is not ignoring the problem and is helping local households and businesses to reduce their bills.
A cabinet meeting was held on Wednesday 19 June and it was decided to extend the electricity subsidies.
According to the head of the Cyprus Consumers Association, Marios Drushiotis, the state subsidy will cover the bills of domestic, commercial and industrial consumers until 31 October 2024. It should be noted that the subsidy will apply to more than 400,000 households and 100,000 businesses. It will cost the state budget 12 million euros.
The subsidy will cover the share of the increase in the price of electricity, the amount of which directly depends on the level of consumption. The subsidy is calculated as follows:
- for monthly consumption between 1 and 400 kWh, the subsidy is 85%,
- for monthly consumption between 401 and 600 kWh - 75%,
- 50 percent for monthly consumption between 601 and 800 kWh,
- for monthly consumption of more than 800 kWh - 0%.
- According to preliminary estimates, each Cypriot family will be able to save an average of €20-22 over two months.
The recent fall in oil prices on international markets will also have a positive impact on the bills of Cypriot consumers in the coming months. These figures are lower than the initial €70 at the start of the programme, but significantly higher than those presented during the last subsidy extension at the end of March this year.
However, there is no reason to relax. According to Electrification Authority (EAC) spokeswoman Christina Papadopoulou, electricity prices in Cyprus will rise by 1.5 per cent by the end of June. This is due to an increase in the price of fuel oil, which is used by Cypriot power plants to generate electricity. Papadopoulou supported the government's initiative. She mentioned that thanks to the extension of the subsidies, the average Cypriot household's electricity bill for two months will be €239, compared to around €261 if there were no subsidies.