Energy expensiveness has brought consumers and small and medium-sized enterprises to their knees

Statement by Christina Nicolaou, Head of Environment and Energy Policy of the C.C. of AKEL

7 February 2024, AKEL C.C. Press Office, Nicosia

Energy expensiveness has brought consumers and small and medium-sized enterprises to their knees.

Even if the Cyprus Electricity Authority (AHK) does not insist on the demand for recovery of the 2023 costs, big increases in the price of electricity are expected as a result of the millions of Euros that consumers have to pay for the fines that are being imposed for pollutants.

We expect the government to extend the existing support measures for households and businesses and to approve additional measures to provide relief to consumers.

AKEL has long tabled a specific proposal to tax the windfall profits of energy production and supply companies and to use the resulting revenues to support consumers. The Cyprus Energy Regulatory Authority (PAEK) has also recently come out in favour of such a measure. However, the Christodoulides Government has so far refused to act decisively in this direction. The same inaction is observed in relation to the Government’s obligation under a European directive to use at least 50% of the proceeds from the auctioning of emission allowances to provide support to middle and low income households.

Solutions do exist and it is now up to the Government whether it will allow the majority of Cypriot society to face the danger of energy poverty.

07.02.2024