AKEL proposes two measures to further reduce the price of electricity

Statement by AKEL Press Spokesperson Stefanos Stefanou

AKEL C.C. Press Office, 2 May 2020, Nicosia

The reduction in the price of electricity by the Cyprus Electricity Authority (AHK) for two months and its extension by another two, is a positive measure. It demonstrates the correctness of AKEL’s timeless position that the country needs publicly-owned organizations in vital areas, such as electricity, to support society and the country, especially in times of crisis.

In addition to the reductions made, we believe that it is possible to further reduce the price of electricity without burdening AHK or the state by implementing two additional measures.

The first measure concerns the review of the decision to temporarily rent production units to meet the demand for 2020. The decision was taken a year ago under different conditions. Today, due to the restrictive measures being applied, the demand for electricity is already 15% – 20% down. The decline in the coming months is expected to be even greater.

In the light of the new conditions, the relevant Ministries and services must review the decision. The cancellation of the rent will lead to the saving of several million Euros with positive effects on the price of electricity.

The second measure concerns the reopening of unit 2 at Vasiliko. The unit is not used because anti-pollution work was scheduled to be carried out in it. The same was also done with unit 1. In unit 2, with a capacity of 130 MW, the projects did not start due to the situation and therefore they are available for use.

Its operation could replace the units in Dhekelia that were called upon to meet the demand in view of the anti-pollution projects at Vasilikos. The units in Dhekelia are 30% more expensive than those of Vasilikos, while they emit 30% more pollutants.

We are informed that the relevant Ministry invokes the letter of the law and does not allow AHK to operate it, a development that is expected to reduce production costs.

We call on the Ministry in question to find ways of overcoming whatever legal problems and to permit the reopening of Unit 2 at Vasilikos. This will be to the benefit of society and the Cyprus economy.