Electricity Authority of Cyprus (EAC) bills will increase by 2% in May, compared to April, due to a readjustment of fuel prices, according to the EAC spokesperson, Christina Papadopoulou, as she stated in Brief. It is noted that last month, there was a decrease by 6% in EAC bills compared to March. Electricity price in May amounts to €0.28 per KWh.

As Ms. Papadopoulou explained, if we compare this year's May to last year's, there is a 2% decrease, while if we compare it to May 2021, then there is a 33% increase. It is reminded that in 2021, prices were quite low due to lower electricity demand caused by emergency pandemic measures.

It is noted that the government policy, which subsidizes the cost of electricity consumption, will be in effect until June 30th. The decision applies to the May-June invoices, which concern electricity consumption during the March-April 2023 period.

The subsidy amounts to 100% for vulnerable households, while remaining graduated for other fragile households, commercial and industrial consumers. The subsidy also covers water consumption for irrigation and rainwater pumping reasons, on a bimonthly basis.

Ms. Papadopoulou emphasized that the electricity price remains at high levels. As an example, she mentioned that a bill for, e.g. 800 kW consumption, over a two-month period -a reasonable consumption for a family of four- would amount to €226, including VAT and other fees.

Regarding the high prices, the EAC spokesperson noted that 70% of the bills are related to the cost of fuel and the purchase of greenhouse gas emission rights. Specifically, she claimed that "if these two factors do not change, we won’t see a significant reduction in fuel prices; they will still remain at high levels”.

In conclusion, Ms. Papadopoulou highlighted that EAC intensifies its efforts to increase the renewable energy penetration in the country’s energy mix and underlined that “along with the future use of natural gas, renewable sources will contribute to stabilizing prices at low levels”. She also mentioned that the EAC's production plant units at the Vasilikos Power Station are already ready to operate with natural gas.

The Republic of Cyprus is prioritizing the expansion of renewable energy sources in its energy mix in order to meet EU-mandated reductions in carbon emissions. The previous government allocated 41% of its $1.2 billion Recovery and Resilience Plan funds towards achieving climate objectives, including introducing green taxation, financing energy efficiency and renewable energy investments and promoting sustainable and green mobility.

Cyprus has exceeded its 2020 target of sourcing 13% of its energy consumption from renewable sources and aims to reach 23% by 2030, including in the transport sector, where it faces significant challenges and will require substantial investments in infrastructure. The government has introduced programs for electric vehicles and plans to add 1,000 charging stations in the near future.