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Cyprus' energy sector is undergoing major changes

Cyprus energy sector is undergoing major changes

“The cost of electricity has fallen by 20% since the introduction of new pricing measures in 2017,” the head of the Cyprus Energy Regulatory Authority, Andreas Poullikkas, said on Wednesday at a meeting with President Nicos Anastasiades.

“From 2016 to date, the fee for the use of the grid has been reduced by 20%” he told the President.

He added that the wholesale electricity price in Cyprus has also decreased by three percent compared to 2016.

Commenting on the coronavirus pandemic situation, Poullikkas said that the authorities had decided on an initial 10 percent reduction of electricity tariffs by two months at the beginning of quarantine and extended the discount for another two months at the suggestion of the Electricity Authority.

Regarding the purchase of electricity, Poullikkas said he expects healthy competition in the market by the end of 2021. This is due to the installation of new software used to manage the electricity system in Cyprus. It is expected to be completed by the end of 2021.

He added that the new system will make Cyprus an “energy center” that will distribute energy from/to Europe, Egypt and Israel.

For his part, Anastasiades stressed that the energy sector in Cyprus is changing radically due to the creation of an energy center in Vasiliko and the beginning of the development of natural gas fields.

He added that he will support CERA in any difficulties they may face and will work together with them to find solutions.