The new tariff system of the Electricity Authority of Cyprus (EAC), in place as of today, will bring an overall reduction of approximately 6% in electricity bills.
EAC Spokesperson Christina Papadopoulou told CNA today that these tariffs will apply for the period until the end of 2017 and will be reviewed by Cyprus Energy Regulatory Authority (CERA) every year and based on the EAC’s approved revenues.
Bimonthly customers will receive their first accounts based on the new tariffs from November 1, 2017, while monthly customers will receive their first accounts from next October.
The new tariff system is cost-oriented and provides that consumers will be charged at the actual cost of electricity at the time they consume it. It will bring a general reduction of around 6% in electricity prices for most consumers. The EAC’s new pricing would lead to increases in some categories such as storage heaters, water pumping, road lighting and large industrial customers.
However, as Papadopoulou said, the EAC will cover the extra cost for the next four years or until the opening of the electricity market to competition. That will have a cost of €5.2 million every year for EAC, until 2021 which will come from the authority’s profitability.
For the average household (consuming 800 kWh bimonthly), the implementation of the new tariffs will bring about a 4% reduction in electricity costs. As Papadopolou said, a household that pays €150 will have a 4% reduction, but if it pays €200, the reduction will be bigger, since there will be a fixed charge for all kWh consumed.
Among the major changes resulting from the new pricing are the abolition of the maximum demand charge, which has burdened large industrial and commercial customers.
She also noted that price adjustments resulting from the change in oil prices internationally will continue to apply as they are today.
The new bills will include in detail the cost of each regulated activity of EAC, in particular production, transport, distribution and supply, in order to facilitate the opening of a competitive energy market.
The EAC will hold a press conference next Tuesday at 12.00 at its Headquarters to present the new tariffs.