Reducing electricity costs for households and businesses remains a key priority for the government, Energy Minister George Papanastasiou said on Tuesday.

Speaking at a Transmission System Operator Cyprus event to mark the launch of the third trial period for a competitive electricity market, the minister outlined plans for a fully operational competitive electricity market by July 2025.

Papanastasiou described the start of the trial period as a pivotal phase in the transition towards a liberalised electricity market.

“This trial period is essential to ensure that all systems operate smoothly and participants are well-versed in the procedures for the production and trading of electricity,” he said.

The six-month trial period will identify potential issues, which will then be addressed before the official market launch.

“We recognise that problems will arise, but this process is designed to detect and resolve them, ensuring we are ready by July,” he said.

The government’s ultimate goal, Papanastasiou said, is to reduce electricity prices, and so enhance the sustainability of the economy.

“Without affordable electricity, the economy faces significant challenges. Lowering energy costs for both households and businesses is essential for long-term economic viability,” he added.

Papanastasiou urged market participants to remain actively engaged in the process and to prioritise readiness by investing in the necessary infrastructure and training personnel.

“Proper preparation, including workforce training, will play a crucial role in the successful operation of the market,” he said.

The minister highlighted the importance of educational workshops planned by TSOC, encouraging stakeholders to attend to deepen their understanding of the market management system.

Expressing confidence in the market’s prospects, he said, “We look forward to a well-functioning competitive market that will deliver better electricity prices and support Cyprus’ economic growth.”

The six-month trial phase will conclude with an evaluation in mid-2025, ahead of the competitive market’s anticipated full launch in July 2025.