A political and regulatory firestorm has erupted in Cyprus over the Electricity Authority of Cyprus's (EAC) bid to raise electricity prices by up to 9.5%, exposing contradictions between government pledges, regulatory oversight, and public interest. FastForward traces the timeline of the unfolding controversy, from behind-the-scenes interventions to parliamentary outrage.

The saga began with assurances from President Nikos Christodoulides in mid-May, who claimed to have personally intervened to halt a planned electricity price increase. “These are actions we often take away from the spotlight,” he said, framing it as a quiet political victory amid mounting household pressures. Shortly after, the EAC seemed to fall in line, temporarily retracting a planned 7.5% hike.

Yet that reprieve was short-lived.

By early June, internal documents and testimonies revealed that the EAC had reactivated its proposal—now requesting a 7.5% increase before VAT, effectively pushing household bills up by nearly 9.5%. The revelation, presented during a fiery session of the House Energy Committee, triggered outrage. Committee chair Kyriakos Hadjiyiannis accused unnamed officials of interfering with the Cyprus Energy Regulatory Authority (CERA) to prevent it from issuing a written response. He described this as a “major political blunder” and “unlawful pressure” on the independent regulator.

“We are witnessing a systemic failure,” Hadjiyiannis declared, questioning whether the push for higher tariffs is truly tied to investments or simply meant to cover inflated operational costs—ranging from high staff salaries to administrative expenses.

The EAC’s Executive Director of Finance, Costas Kolakides, justified the proposed increase as necessary to finance both past and future infrastructure projects. Yet during the same committee meeting, discrepancies emerged. While Kolakides referred to a 9% increase, EAC Chairman Giorgos Petrou had previously spoken of only a 3% adjustment—prompting accusations of "double-speak" from MPs.

Consumer organizations were quick to respond. The Cyprus Consumers Association and the Pancyprian Consumers Union demanded a zero-increase policy, citing Cyprus’s position as one of the most expensive electricity markets in the EU. “We’re the country that buys even the sun,” said Union president Loukas Aristodemou, slamming the idea of new hikes at a time when global fuel and emissions prices are falling.

Consumer advocate Marios Drousiotis went further, arguing that any permanent hike cannot be justified by temporary market trends: “We are already paying among the highest rates in Europe. Now they want to add more? It’s unacceptable.”

Behind the scenes, frustration is mounting over a broader failure of energy strategy. AKEL MP Costas Costa blamed chronic governmental incompetence for the lack of energy storage infrastructure, failure to upgrade the Dekelia power plant, and underinvestment in renewable integration. He added that despite €300 million in annual emissions costs passed onto consumers, the revenues are funneled back into state coffers, not returned to the public.

The latest statement from Petrou confirmed that the EAC Board has not finalized its proposal but will submit it to CERA “within days.” CERA, for its part, had previously acknowledged that a 7.5% increase may be justified based on submitted financials—but has yet to issue a decision.

As political pressure builds, the next session of the Energy Committee will summon the Energy Minister, CERA’s leadership, and EAC executives to answer critical questions.