Electricity Authority Enacts 22% Rate Increase Amid Escalating Energy Costs

Electricity Tariff Increase Raises Concerns Among Businesses

Businesses in northern Cyprus are warning of mounting cost pressures after the electricity authority announced a 22% increase in power tariffs, set to take effect in June. The decision has sparked concern across the industrial sector, where rising energy costs are already weighing on competitiveness and operating margins.

Cost Pressures And The Need For Adjustment

According to the electricity authority, energy costs have increased significantly over the past 14 months without corresponding tariff adjustments. Officials said a smaller increase of between 10% and 15% had previously been proposed but was not approved by the council of ministers. Since then, fuel prices have risen by more than 60%, while the cost of living has increased by 38% and exchange rates by 18%. The authority argues that the latest tariff adjustment is necessary to maintain the financial sustainability of the electricity system.

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Industrial Impact And The Risk Of Losing Competitiveness

KTSO President Ali Kamatzoglou said electricity remains one of the largest cost components for local manufacturers and producers. According to Kamatzoglou, industrial electricity prices currently stand at around 10 Turkish lira per kilowatt-hour, compared with approximately 3 Turkish lira in Turkey, placing businesses in northern Cyprus at a competitive disadvantage. He warned that an increase to 12.5 Turkish lira per kilowatt-hour could further weaken the sector’s competitiveness and put additional pressure on industrial activity.

Sector-Specific Concerns And Calls For Government Intervention

Concerns extend beyond manufacturing to sectors including food production, construction, cleaning products and water supply. Industry representatives estimate that around 25 producers and approximately 1,500 employees could be affected by higher electricity costs. Kamatzoglou called on the government to introduce support measures and develop a longer-term strategy to help businesses manage rising operating expenses while maintaining competitiveness.

Economic Implications

Business groups are now awaiting a response from policymakers as concerns grow over the broader economic impact of the tariff increase. Industry representatives argue that without targeted support, higher energy costs could affect production levels, investment decisions and employment across multiple sectors.

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Only 1% Of Cyprus Farms Use Precision Farming Technologies

by THEFUTURE.TEAM

July 24, 2026

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

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Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.

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