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The government is ramping up efforts to bring down electricity costs for households and businesses by July 2025 through the introduction of a competitive electricity market, Energy Minister George Papanastasiou announced on Tuesday. This marks a significant step toward reducing economic burdens on consumers and promoting sustainability.
Speaking at a meeting hosted by the Cyprus Transmission System Operator, Papanastasiou highlighted the launch of the third Trial Operating Period for the Competitive Electricity Market. The trial phase aims to ensure the market systems work efficiently and participants—ranging from producers to sellers—are prepared for the full implementation.
Trial period to iron out issues
The six-month trial period, described as a "dress rehearsal," will test all systems and procedures involved in the electricity market. “We expect challenges, but this process will help identify and address any problems so that by July 2025, we can operate a fully competitive market,” Papanastasiou explained.
He emphasized the importance of this shift, noting that high electricity costs strain households, businesses, and the broader economy. By introducing competition, the government aims to lower prices and boost economic sustainability.
Collaboration and training are key
Papanastasiou acknowledged the extensive work already done to launch the trial phase, praising the dedication of all parties involved. He called on stakeholders to actively engage in the process and prepare by investing in infrastructure and training.
Workshops organized by the TSO will help participants understand and use the Market Management System effectively, ensuring the smooth operation of the electricity market once it goes live.
What’s next?
The six-month trial will test the entire electricity exchange system—from production to sales—allowing all participants to adjust to the new procedures. The government remains focused on achieving its July 2025 target, a timeline they believe is realistic despite expected challenges.
For Cyprus, this move represents a crucial step toward modernizing its energy sector and reducing electricity costs, a pressing issue for both consumers and businesses. If successful, the competitive electricity market promises to make energy more affordable and contribute to a stronger, more sustainable economy.
