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12° Nicosia,
06 October, 2022
 
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Increasing electricity costs to be subsidized by the government

The grant will cover 100% of the upcoming electricity price increase for vulnerable population groups

Source: CNA

Source: Kathimerini.com.cy

A subsidy that will cover part of the increase in the price of electricity was hammered down during today's session by the Cabinet. As the Minister of Finance Constantinos Petridis stated, the subsidies will be made available for residential, commercial and industrial consumers and will cover 50%-100% of the increases. The new support package amounts to €50 million.

the invoice the citizen receives will display the initial cost of the electricity, the amount of the state subsidy given for the particular group category and then the amount that the customer pays

Specifically, 449 thousand households and 111,500 businesses will be covered as follows:

For household consumers the subsidy of the increase

- will cover 100% of the upcoming electricity price increase for vulnerable population groups

- Up to 85% of the upcoming increase for consumption from 1-400 kilowatts

- Up to 75% for consumption of 401-600 kilowatts

- Up to 50% for consumption of 601-800 kilowatts

Commercial use

- Up to 85% for consumption from 1-500 kilowatts

- Up to 75% for consumption from 501-750 kilowatts

- Up to 50% for consumption of 751-1500 kilowatts

Industrial use

- The grant will cover up to 85% of the increase in consumption 1-750

- Up to 75% for consumption from 751-1000 kilowatts

- Up to 50% for consumption from 1001-1500 kilowatts

As the Minister of Finance mentioned, these are horizontal and targeted measures that will serve the middle classes and vulnerable population groups while also promoting energy savings. This is very important as he mentioned as "electricity and energy prices will remain at high levels, the permanent solution is saving and integrated planning in terms of complete independence from fossil fuels".

He also mentioned that the VAT on electricity is returning to 19%, however, and this will be covered by state sponsorship.

"So the state's sponsorship will cover two parts, the percentage of the increase but also the VAT", he said, explaining that the aid takes a different form. "Instead of lowering the VAT, this difference will be subsidized by the state," he said, adding that in the invoices that will be sent in September, there will be a 20% to 30% reduction depending on the tariff it falls under.

Answering a question, Mr. Petridis explained that the subsidy will be paid directly to the EAC, consequently, the invoice the citizen receives will display the initial cost of the electricity, the amount of the state subsidy given for the particular group category and then the amount that the customer pays.

Pilidou: Take advantage of the savings plans

In her own statements, the Minister of Energy Natasa Pileidou, after reminding us that saving and installing photovoltaic systems are the best methods for permanently reducing the cost of electricity, emphasized that in addition to these measures, the Ministry's plans, which have a much larger budget, continue to be in force.

She pointed out that until 2020, €8 million per year was available for grant projects, while the budget for 2021 will exceed €120 million, while plans are underway for the installation of photovoltaics, roof thermal insulation for installation of water heaters as well as specific plans for the vulnerable groups.  Moreover, the €40 million "Save - Upgrade" project is also running for businesses, which encourages savings while also subsidizing the installation of photovoltaics, "so that we achieve a permanent reduction in the cost of electricity.

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Cyprus  |  energy  |  electricity  |  subsidy

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