Newsroom
Cyprus recorded the largest drop in household electricity prices in the European Union in 2025, offering relief after several years of high energy costs. The improvement, however, tells only part of the story. For businesses, electricity on the island remains among the most expensive in Europe.
Eurostat data show that household electricity prices in Cyprus fell by 14.7% in the second half of 2025 compared with the same period in 2024. No other EU country saw a bigger decline. By contrast, prices increased in most of the bloc, with steep rises in Romania, Austria and Ireland.
Across the EU, the average household price now stands at about €0.29 per kilowatt-hour. That figure remains elevated compared with levels before the energy crisis. Prices surged in 2022 due to disruptions in gas supply, geopolitical tensions and rising carbon costs. Although wholesale markets have eased since then, the effect on household bills has been slower to reverse.
Cyprus benefited from support measures that had been in place through 2024. These subsidies helped cushion consumers during the peak of the crisis. As they were scaled back, prices began to adjust. For households, this has translated into a noticeable reduction in bills at a time when many are still dealing with high living costs.
Taxes and levies still account for a significant share of electricity bills across Europe, close to 29% on average. That share had dropped during the crisis when governments intervened to limit costs, but it has been rising again as those measures are withdrawn.
Businesses still face high costs
For companies in Cyprus, electricity remains a major expense. In the second half of 2025, non-household electricity prices reached €0.2429 per kWh, placing Cyprus second in the EU behind Ireland.
The difference with lower-cost countries is significant. Businesses in Finland and Sweden pay far less, with prices well below the EU average of €0.1837 per kWh. This gap affects competitiveness, especially for sectors that rely heavily on energy.
Several factors continue to keep prices high in Cyprus. The island is not yet fully connected to the European electricity grid, which limits access to cheaper imports. Power generation still depends heavily on imported fuels, leaving prices exposed to global market fluctuations. In addition, taxes and levies form a sizeable part of the final cost for businesses, close to 30% in Cyprus.
