Scorching temperatures prevailing over Cyprus are testing the island’s power production capacity, feeding growing calls for the government to rethink its decision to scrap an electricity bill subsidy.
With air-conditioning units working overtime to cool down offices and homes with temperatures well over 40 degrees Celsius, consumers’ bills are expected to soar.
Temperatures on Saturday peaked at a maximum 44.5C, following the arrival of heatwave ‘Cleon’ earlier last week.
High temperatures were accompanied by the largest electricity consumption this summer.
A further increase in consumption is expected to follow as discomfort from high temperatures continues.
On Monday, power consumption peaked at 2.15 pm, reaching 1,151 MW — 391 MW were produced by photovoltaics and another 19 MW by wind farms.
Consumers are seeing their electricity bills shoot up by an additional €70, as the government only offers relief to lower-income households.
Pressure from political parties on the government to restore the electricity subsidy plan for everyone is back on.
Right-wing DISY joined calls from opposition parties to reinstate the subsidy.
Under pressure, Energy Minister George Papanastasiou argued that state finances only allowed expanding the list of vulnerable groups entitled to electricity subsidies.
He said the matter had been discussed extensively in Cabinet, and the decision taken was not easy.
“I believe it is correct, as we must also be serious about our finances.”
He noted that the horizontal electricity subsidy would further burden the state’s coffers, but the government will proceed with targeted measures.
As things stand, the electricity subsidy for low-income households is valid until the end of September at a cost of €2.5 mln.
The electricity subsidy was introduced in September last year to cover the increase in bills resulting from the government’s decision to reinstate VAT by 19% after lowering it to 9% for a ten-month grace period.
It provided a maximum €68.72 discount on electricity bills.
The measure benefited 449,000 households and 111,500 businesses at an estimated cost from September 2022 until the end of June at over €100 mln.
It was scrapped as a universal subsidy at the end of June.
