The cost of electricity has decreased by 20 per cent since new pricing measures were introduced in 2017, the head of the Cyprus Energy Regulatory Authority Andreas Poulikkas said on Wednesday.
Poulikkas, who was submitting his report to President Nicos Anastasiades, said the new pricing measures were implemented in 2017 and within the year there was a decrease in costs.
“The usage fee for the network has decreased 20 per cent from 2016 to present,” he told the president.
He added there has also been a decrease in the wholesale price of electricity in Cyprus by three per cent from 2016, and the base household value price has also decreased 5.2 per cent in the same period.
Commenting on the coronavirus pandemic, Poulikkas said the authority decided on an initial 10 per cent decrease in costs for two months and extended it for a further two months following a proposal from the Electricity Authority.
On buying electricity, Poulikkas said they expect healthy competition in the market towards the end of 2021. He added there were delays due to the software needed from the manager of the distribution system, which is meant to finish by the end of 2020. The second delay is due to the software used to manage the system in Cyprus, which is set to be completed by the end of 2021.
“Both are very necessary to operate and monitor the acquisition of electricity,” he said.
On the two interconnectors expected to end Cyprus’ energy isolation, Poulikkas said CERA is closely monitoring the Euro-Africa Interconnector and the Euro-Asia Interconnector.
He added with these interconnectors, Cyprus would become an ‘energy hub’ from and to Europe and from and to Egypt and Israel.
On his part, Anastasiades said the energy sector in Cyprus is changing drastically, due to the creation of the energy centre in Vasiliko and the acquisition of natural gas.
He added through the work being done by CERA and the government, efforts are being made to free up the market.
“I do not disagree with the importance of the Euro-Asia and Euro-Africa interconnectors, which are an important development for the end of isolation [in Cyprus], and the price of electricity,” he said.
He added he will stand by CERA in any difficulties they might face on the issues they are dealing with, and he will work together with them to find a solution.