Electricity prices to stay high until 2023

No respite from rising energy prices is expected; following warnings of new increases in fuel prices, the Electricity Authority of Cyprus told customers their power bills would not drop before next year.

Talking to CyBC radio on Wednesday, EAC’s spokesperson Christina Papadopoulou said electricity bills will not fall before March 2023.

Papadopoulou said that electricity bills in Cyprus saw a 48% increase as the cost of fuel rises, with the Authority paying hefty penalties for its high dependence on fossil fuels.

She conceded there is not much the EAC can do as international developments power the increase.

Around 70% of electricity bills are affected by the price of oil internationally and the greenhouse gas rights purchased by the EAC.

Electricity bills were reduced following a government decision to lower the VAT on household electricity bills from 19% to 9% for November 2021 to April 2022.

Low-income households saw VAT on their electricity reduced to 5%.

The Cabinet is expected to extend VAT reductions until the end of August.

Cyprus is still heavily dependent on fossil fuels, despite its commitment to the EU to reduce CO2 gas emissions by at least 55% by 2030, increasing energy efficiency by a minimum of 32.5%.

It is obligated to increase the contribution of Renewable Energy Sources to its energy mix to 40% by 2030.

Authorities hope to reduce emissions by 25-30% with the introduction of natural gas, committing to do so next year.

But Nicosia pays millions in EU fines for its delay in converting to cleaner energy use.