Consumers are facing new significant increases in electricity prices, in the coming period, as well as in the medium term.
This is because the judicial decision on the appeal of the Electricity Authority of Cyprus (EAC) for the negative response of Cyprus Energy Regulatory Authority (CERA) to the request within 2023 for an increase in electricity prices for the previous year is pending, while a new request for increases from EAC has been submitted for 2024.
Additionally, it is estimated that the price per kilowatt-hour will increase for environmental reasons, as the cost of pollution is showing an upward trend, with a possible doubling by 2030.
During today’s discussion in the parliamentary Economic Committee of the CERA budget for 2024, the president of the Regulatory Authority, Andreas Poulikkas, mentioned that the decision of the Court is pending on the PPC’s appeal.
As is known, the EAC has appealed to the Court for the negative response of CERA to the request for imposition of increases in the final electricity price up to 25% in 2023.
Additionally, he said that the EAC has submitted a new request for smaller increases in 2024, avoiding revealing the amount of increases requested by the EAC for 2024.
Information from the Phileleftheros newspaper indicates that if the request is satisfied, which is the most likely scenario, it will result in an increase in the price by approximately 10%.
According to Mr. Poulikkas, in the event that the Court ruling favors the EAC, the Authority will have the ability to impose increases of approximately 25% for 2023 as well as the increase for 2024, assuming that the latter will be approved by CERA.
Meanwhile, Mr. Poulikkas expressed the estimation that the price per kilowatt-hour will continue to increase in the short and long term.
Finally, regarding the market for emission rights, the president of CERA said that by 2030 the price is estimated to reach €200 per ton, while today it is €70 per ton, and for 2023 the cost on electricity bills was approximately €300 million.