Electricity bills are up 27% compared to last May, with rising fuel prices placing a significant burden on consumers. At the same time, the issue of fuel taxation is back in the spotlight, with a proposed bill aimed at greater transparency regarding the charges paid by citizens.
Speaking on the “Alpha Kalimera” program, the Press Spokesperson for the Cyprus Electricity Authority (CEA), Christina Papadopoulou, explained that approximately 70% of the electricity bill is attributable to fuel costs. As she noted, the weighted average price of fuel rose from 620 euros per metric ton in April to 920 euros today, marking an increase of approximately 48%. She clarified that the comparison between the May and October bills also includes the period during which the VAT rate was reduced to 5%, noting that price trends remain uncertain.
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Referring to the fuel reserves that the EAC had purchased in advance, Ms. Papadopoulou noted that these quantities, as well as the greenhouse gas emission allowances that had been secured, were utilized during the summer, when electricity consumption was particularly high. “These forward purchases helped keep electricity prices in check and prevented them from skyrocketing,” she said, adding that “these forward purchases, however, have been exhausted. We had also approached our suppliers, but unfortunately our request to purchase more in advance was not granted.” He also explained that the EAC procures fuel every two to three weeks, maintaining reserves for about two months, while a special department monitors energy market prices on a daily basis.
For his part, DISY MP Nikos Georgiou announced that he is introducing a bill so that gas station receipts will separately list the net price of the fuel and the taxes and fees paid by the consumer. As he explained, the initiative arose following a discussion in the Parliamentary Committee on Energy, during which, according to him, the relevant government agencies were unable to present a detailed breakdown of the individual charges. “It’s a matter of transparency. It’s a matter of keeping consumers informed and ensuring they know where their money is going,” he emphasized, noting that a similar practice is already in place in other European countries, including Greece.
According to Mr. Georgiou, approximately 60% of the price paid by consumers represents the value of the fuel, while the remaining 40% consists of taxes and fees. The member of parliament argued that, although the Republic of Cyprus cannot influence international oil prices, the euro-dollar exchange rate, or transportation costs, it does have room to intervene on the issue of taxation. In fact, he referred to the possibility of requesting an exemption from European regulations, calling on the government to explore the possibility of providing relief to consumers.
Finally, the lawmaker raised the issue of delays in the completion of an investigation by the Competition Protection Commission into the fuel sector, which, as he noted, has been ongoing since 2024. “Are there or aren’t there distortions or abuses? Some questions need answers,” he emphasized. At the same time, he referred to complaints from consumer associations regarding 19 gas stations that allegedly failed to pass on to consumers a previous reduction in the Special Consumption Tax, clarifying that he does not endorse these specific complaints and does not know whether they are valid. He noted, however, that itemizing charges on receipts would enhance transparency and facilitate verification.
