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Energy Consumption Costs Soar For Cypriot Consumers

by THEFUTURE.TEAM

July 15, 2024

As Cyprus grapples with soaring temperatures, the financial burden on consumers due to increased energy consumption is becoming apparent. The Cyprus Electricity Authority (EAC) has reported a significant uptick in electricity bills, driven not by rising energy prices, but by extensive use of air conditioning units.

Rising Costs

According to the EAC President, George Petrou, electricity bills for June and July 2024 are projected to increase by approximately 1.5% compared to May. This rise is attributed to the heavy reliance on air conditioning, necessitated by the extreme heat. Petrou highlighted that while fuel prices have remained stable due to pre-purchased stock, the intense use of air conditioning has led to higher consumption rates, thereby increasing costs for consumers.

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Recommendations for Consumers

To mitigate these costs, the EAC advises consumers to use air conditioners judiciously. Petrou recommends setting air conditioners to 26 degrees Celsius, noting that each degree lower can increase energy consumption by up to 6%. This means that setting an air conditioner to 18 degrees instead of 26 can lead to a 40% rise in energy usage. Consumers are also urged to ensure windows are closed while air conditioners are in operation to maximise efficiency.

Economic Implications

Kostas Karayiannis, Head of the Consumer Protection Service, pointed out that electricity costs and high interest rates are major concerns for households and businesses. While a recent decrease in fuel prices provided some relief, there is cautious optimism about the stability of these prices in the near future.

Government Measures

The Cypriot government has extended its subsidy on electricity prices and maintained a zero VAT rate on 11 essential consumer goods until October 2024. These measures aim to alleviate the financial strain on consumers during the peak summer months. Marios Drousiotis, President of the Cyprus Consumers Association, commended the government’s initiatives but cautioned that consumers will still face significant electricity bills due to the necessity of air conditioning in the high temperatures.

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Industry Uproar Over Reduction in Electric Vehicle Subsidies

by News Editor

April 26, 2025

The recent move by the government to curtail subsidies for electric vehicles has stirred significant discontent among car importers in Cyprus. The Department of Road Transport (DRT) has slashed available grants under the Electric Vehicle Promotion Scheme as of April 23, leading to a rapid depletion of the subsidy pool and leaving many potential applicants disappointed.

Importers’ Concerns

According to the Cyprus Motor Vehicle Importers Association (CMVIA), the lack of transparency and failure to engage stakeholders prior to the decision have eroded trust in the government’s commitments. Importers now find themselves facing a precarious situation, with substantial stocks of electric vehicles and mounting promotional expenditures.

Public Interest and EU Compliance

Although the scheme aimed to support the transition to zero-emission transport until 2025, the DRT states that the curtailing of funds was necessary to comply with European funding terms, which warned against delays in vehicle deliveries. This decision has fueled market uncertainty despite the application portal experiencing dynamic changes.

Industry’s Ongoing Demand

The CMVIA refutes any claims suggesting waning interest in electric vehicles, underscoring the rapid exhaustion of available grants as proof of substantial demand. They highlight the importance of meeting Cyprus’s green transition targets, including putting 80,000 electric vehicles on roads by 2030.

While the total budget for subsidies saw an increase to €36.5 million in 2023, thanks to additional funding, ongoing difficulties in timely vehicle distribution have led to premature closures of applications. In response, CMVIA has called for urgent dialogue with the Minister of Transport to reassess the decision, fearing that it could endanger the future of e-mobility in Cyprus.