Despite discount, electricity prices at decade-high

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Cypriots must dig deep into their pockets to pay November electricity bills, as the cost of energy is at its highest since 2012.

A 10% discount offered by the Electricity Authority of Cyprus will essentially be wiped out.

Businesses and households will be paying 10% more in November than October, as the increase in the cost of energy reaches 20%.

The year-on-year increase on November bills will exceed 90%, with the EAC blaming the hike on the rise of fuel costs and the increase in the cost of purchasing greenhouse gas emission rights.

The cost of buying emission rights doubled in November compared to October.

According to EAC official data, the average fuel cost for November jumps to €705.16 per metric tonne, while for October, it was €549.06.

Due to this, according to the EAC, the cost of liquid fuel for electricity generation will rise in November to 16.3 cents per kWh, compared to 12.738 cents in October and 11.659 cents in September.

Both the average cost of buying fuel and the net cost of energy production are at the highest recorded in Cyprus since 2012.

This alone indicates the severity of the energy crisis plaguing Cyprus, which is not expected to ease any time soon.

In November, EAC fuel cost stands at 16.3 cents per kWh, while in February, it was 8.725 cents (increase 86%).

The increase in fuel costs between November this year and last year (8.471) is 92%.

The rise compared to November 2019 (11.754 cents/kilowatt hour) is 38%.

Even in 2013, when prices were thought to be high, EAC fuel cost was 15.085 in March 2013, while in November 2021, it stands at 16.294.

Experts warn that energy costs will not fall in the short term, and inflation will not subside next year.

Carbon prices more than doubled over the past two years, surging to a record earlier this month as the EU tightens its climate policy, contributing to natural gas and power prices spiking.