The ‘green tax’ levied on electricity consumption will almost triple next year, in order to pay for a €13 million shortfall in the renewable energy source (RES) fund, House commerce committee chairman Angelos Votsis said on Tuesday.
The RES fund, funded by a green tax of 0.5 cents per kilowatt hour on every electricity bill in Cyprus, is used to compensate investors in energy-production from wind, solar and biomass, per the terms of contracts signed with the government, and has shown substantial deficits in recent years due to stifled electricity consumption and the dramatic fall in oil prices.
Among various proposals tabled, the most popular one is an increase in the green tax to 0.9 or 1 cent per kilowatt hour consumed.
The state’s contribution to the fund, in the form of funneling revenues from gas-emission auctions, will run in the millions.
“There was also discussion on whether RES producers should also pitch in, and various issues have come up,” Votsis said.
According to the committee chairman, a consumer that paid €300 per month prior to the fall of oil prices, now pays €200, and some €8 will be added on to the bill to now become €208.
As of 2019 the plan is to link the green tax to the cost of oil, so that the fund does not return in the red.