Consumer Association Expresses Concerns Over Government Support Measures

Consumer Association Expresses Concerns Over Government Support Measures

“The Mountain Labored and Brought Forth a Mouse”

The recently announced support measures by the Government do not provide lasting, holistic, and sustainable solutions. Instead, they offer "very temporary, patchwork, and palliative solutions," according to the Pan-Cyprian Consumer and Quality of Life Union. The Union refers to the proverb, "The mountain labored and brought forth a mouse," emphasizing the lack of substantial results from the measures.

In a statement, the Union points out that many of these solutions seem to be cunning subsidies that may prove ineffective in the long run, possibly even turning out to be a "gift that costs."

Regarding the subsidization of electricity costs, the Union suggests that there's a hidden intent behind the government's actions. They allude to potential upcoming rate increases, including a 25% hike requested by the AHK, which was declined by the RAEK. However, the Union believes that it's likely a court would approve such a rate hike.

When addressing the reduction of the special consumption tax on heating oil, the Union questions how much difference another month would make for mountain region residents, who typically start using heaters in November. They also criticize the lack of mention of liquefied petroleum gas, another heating source.

In reference to the "Photovoltaic for All" plan, the Union observes that the €30 million allocated will only cover 5,000 to 6,000 households. Given that the installation cost for a 4.16KW system is around €5,000 to €6,000, and with the state only offering a €1,000 grant (which will be offset by VAT), the Union labels the reduction of the state's €1,500 grant in other programs as a mistake.

The Union also raises a question: "What is the new government's policy on combating the massive issue of Energy Poverty, which affects 8 out of 10 Cypriots?" They highlight that Cyprus ranks 4th worst in Europe in this respect, while much smaller Malta ranks 10th.

Additionally, the Union welcomes the inclusion of meat and vegetables in the zero VAT rate, though they express doubts about its effectiveness. They note that the Consumer Protection Service has never been and will never be in a position to combat price gouging effectively.

Moreover, the Union voices hope for the approval of the e-kalathi system, which would give consumers greater transparency and information. This would enable them to make more informed choices and play a more effective role in the market.

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