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%.