The decisions on electricity are mocking society

Statement by AKEL Political Bureau member & Head of Economic Policy Charis Polycarpou

29 July 2022, AKEL C.C. Press Office, Nicosia

Yesterday’s announcements by the Anastasiades – DISY government on the new package to tackle price increases are mocking society.

Firstly, because it is not a package of measures, but a single measure which in fact abolishes existing measures such as the reduction of excise duty on fuel.

Secondly, because it is not new, but RATHER an adjustment of the existing measure to reduce VAT on electricity.

Thirdly, because it does not address price increases. In the face of the wave of price increases, instead of a comprehensive strategy being promoted, the government is handing out painkillers to appease social reactions.

However, the government is provoking with its announcements for another reason too because it believes that whoever consumes more electricity is in a better economic situation too and by doing so punishing thousands of families and pensioners who are not included in the special tariff of the Cyprus Electricity Authority (AHK), but have increased consumption due to the social conditions they face. Conditions that the government not only does not understand, but provocatively ignores.

AKEL’s position is that the subsidy of electricity bills must be based on income criteria.

At the same time, AKEL demands that the government should respect the decision of the majority of Parliament which – with the exception of the ruling DISY party – approved legislation for the provision of economic relief to households and small and medium-sized businesses from the price increases and high cost of living. We demand that the government must not proceed with the referral of the legislation, otherwise it will confirm that its concern is not to confront price increases, but the communication management of society’s reactions in order to serve the powerful economic interests that will be affected.