Newsroom
Cyprus is preparing to open its long-awaited competitive electricity market, with officials hopeful the move will finally bring down energy costs for households and businesses.
After years of delays and planning, the Competitive Electricity Market (CEM) will officially launch on October 1, following its regulatory opening on September 15. Energy, Commerce and Industry Minister George Papanastasiou told Parliament’s Energy Committee this week that the new system is expected to introduce more competition and eventually push prices lower.
“This government and this ministry managed, after many years and many efforts, to open this market,” Papanastasiou said. “We organized the system so that CERA [the energy regulator] could make the decision for a September 15 opening.”
The minister said he expects renewable energy producers to become more active under the new setup, targeting not just large commercial clients but also residential consumers, a shift that could further help reduce rates.
The CEM will follow a standard European model already adopted by nearly all EU member states. While Papanastasiou urged caution in expecting immediate change, he expressed confidence that competition will eventually benefit consumers.
“We need to wait and see how the market behaves after October 1 before drawing conclusions,” he said.
During the committee discussion, there were concerns raised about possible price spikes in the early months. Committee Chair Kyriakos Hatzigiannis suggested introducing a temporary price cap to prevent sudden increases.
Papanastasiou said the suggestion was reasonable and confirmed that some precautionary measures have been considered but stressed the importance of observing how the new system functions before intervening.
His message to the public: don’t rush to assume prices will rise. “Let’s see how the market participants behave,” he said, “and respond accordingly if needed.”
The launch marks a major shift for Cyprus, which has long operated under a single-provider model. With the electricity market finally opening up, many are watching closely to see whether competition delivers the promised relief on energy bills.
