The Cyprus Energy Regulatory Authority (CERA) announced on Thursday that it has approved the proposal of the Transmission System Operator of Cyprus (TSOC) to initiate the commercial operation of the Competitive Electricity Market on September 15, 2025, with October 1, 2025 designated as the first official Trading Day.

In its statement, CERA noted that Decision No. 185/2025, dated May 29, 2025, was based on multiple considerations, including the need to avoid launching a new electricity market structure during the peak demand period of the year. Taking this into account, the authority approved the timeline recommended by the TSOC.

CERA emphasized that all participants currently operating under the Transitional Electricity Market Arrangement, as well as any entities interested in entering the Competitive Electricity Market, must complete all necessary actions in accordance with the Electricity Market Rules and TSOC's established procedures.

The regulator further stated that the readiness of all stakeholders is crucial for a successful transition to the new market model, which represents a fundamental shift in how the country’s electricity system operates.

The Competitive Electricity Market aims to open the sector to multiple suppliers, introduce price-based competition, and provide consumers with more choices—aligning Cyprus with broader EU energy market objectives.

Energy Minister Giorgos Papastasiou noted that while prices tend to fall over time in larger markets, smaller markets like Cyprus have not been tested extensively. “We’ll see over time,” he said, adding that the Ministry may intervene if outcomes are unfavorable.

The reform follows 18 months of coordination between the Ministry, RAEK, and the Transmission System Operator of Cyprus (TSOC). A six-month trial phase, which began in January, is set to conclude in July.

The new model resembles a stock exchange, where suppliers buy electricity every 30 minutes. The Cyprus Stock Exchange will manage operations, with Eurobank Greece as the clearing house. Suppliers will compete for consumers based on pricing, encouraging efficiency and potential savings.

While some suppliers currently serve only large consumers, the Minister expects new options for small consumers, including households, with easy switching between providers. Emission penalties will apply to producers, and all grid-related charges will remain in place.