Cyprus Mail

No justification for electricity price hikes

Concerning the recent AHK (EAC) announcement that it was raising electricity charges because of rising oil prices, this comes notwithstanding the fact that international oil prices have actually declined by over 20 per cent since September.
The Mail reported a discussion in Parliament on Thursday where “officials” told MPs that it would be difficult to reduce electricity prices which “were on the rise along with increasing oil prices”.
Are “officials” and indeed MPs incapable of checking actual facts.  I can do no better than quote the following paragraph from the Economist magazine this week.
“The oil price plunged on fears of slower global demand in 2019. The American oil price suffered its longest losing streak—12 straight days—since 1984. The price of the global benchmark, Brent crude, fell by 7% on November 13th to just below $65 a barrel. Prices stabilised the next day on reports that producers were planning to discuss cutting output.”
In the face of the actual facts can MPs and AHK really continue to try justifying the announced electricity price increases?  Can the commerce department not intervene to challenge their totally inaccurate assumptions?  One can but hope.

T J Murray, Larnaca