It’s expected that people will pay slightly less for electricity as of January 1, when the state-run power company is set to readjust some of its rates, the head of the energy regulatory authority (Cera) said on Tuesday.
Speaking at a news conference, Andreas Poullikas also looked ahead to the planned opening up of the electricity market – now envisaged to occur in mid-2020.
He said that recently four licenses were granted to independent electricity suppliers, thus laying the groundwork for the operation of a wholesale market.
Asked whether the opening up of the market would initially bring prices down, Poullikas said it was hard to predict.
However, he added, electricity prices could drop if a number of suppliers engaged in renewable energy sources, and if Cyprus switched to imported liquefied natural gas to power its grid.
Currently in Cyprus about nine per cent of electricity is generated through renewables. The target is to reach 16 per cent by 2020.
Poullikas felt confident this target could be met.
Under the envisioned open market, an ‘electricity exchange’ of sorts will be established, where suppliers’ bids for quantities of electricity will be updated every half an hour.
The exchange will match supply and demand and fix the price for a contract.
Essentially the Electricity Authority of Cyprus would act as a pool, or cache, of electricity.