New electricity tariffs are ready
ECONOMY and Energy Minister Sunat Atun stated that the Economy and Energy Ministry is working on new tariffs and electricity pricing and emphasised that the goal of the new tariffs is not a price hike for consumers, but to make the Cyprus Turkish Electricity Authority (Kıb-Tek) sustainable. He pointed out that Kıb-Tek’s costs have increased significantly, and that it operates at a loss as it sells the electricity it produces far below cost.
Mr Atun noted that the Ministry’s aim is that the poor and those who receive social aid continue to pay 45 kuruş per kilowatt hour and to have those who consume less to pay less while those who consume excessively to pay the highest price in the new tariff.
He went on to explain
that “this is the same all over the world, they pay for as much energy as they consume”. Mr Atun pointed out that a different tariff should be applied to those who consume excessively, and indicated that he is currently working on legislation to implement his plan. Once that has been completed, Mr Atun said that it will be sent to the Council of Ministers.
Stating that high consumption makes pointless and inefficient investments necessary, Mr Atun said “electricity consumption increases during certain times in the summer and winter months. New generators are needed to meet the demand. Investments are made and generators are purchased but they are used for a short period of time.” Mr Atun emphasised that the new tariff adjustment will protect low-income people and allow the government to save money.
The Chairman of the Kıb-Tek Board of Directors Turan Büyükyılmaz stated that the institution suffered serious losses because consumer electricity prices remained the same despite rising prices elsewhere. Kıb-Tek made a loss of 265 million TL in January, and is currently 1.2 billion TL in debt. Mr
Büyükyılmaz pointed out that the institution is constantly in debt in order to have a constant supply of fuel, and that a price hike for consumers is inevitable.
Mr Büyükyılmaz expressed that “the regulation should first be amended in order to increase prices”, and said that they have prepared the regulation amendment and will present it to the Minister.
Mr Büyükyılmaz said that tariff adjustments will be made and there will definitely be an increase for consumers after the regulation amendment is passed by the Council of Ministers, adding, “the triple tariff will go back to the single tariff. Those who consume less will pay less, those who consume more will pay more”.