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A major shift is coming to Cyprus’ electricity market as a new European directive forces changes to the current pricing system. By law, consumers will soon have the right to choose not only their electricity provider but also a fixed-price contract for a set period—offering stability in a market often impacted by fluctuating fuel costs.
What’s Changing?
The directive applies to electricity suppliers serving more than 200,000 customers or those holding a dominant position in the market. In Cyprus, this primarily means the Electricity Authority of Cyprus (EAC), which currently passes on the cost of imported fuel and carbon emission fees to consumers.
With Cyprus lagging behind in implementation, the big question now is: when will these consumer-friendly reforms actually take effect?
Unlike some other European countries, Cyprus does not have a fully competitive electricity market where prices fluctuate dynamically throughout the day, allowing customers to switch providers freely. This means the country must comply with the directive and introduce fixed-rate contract options.
Deadline Missed, But Changes Are Coming
Brussels set a clear deadline—January 17, 2025—for member states to implement the new rules. However, Cyprus has already missed this target. While some parts of the directive allow for a delay until July 26, 2026, the requirement for fixed-price contracts does not fall under this extension.
The Ministry of Energy, Trade, and Industry has drafted a law to bring national regulations in line with the EU directive, and the proposal has been published on the government’s consultation website (e-consultation.gov.cy) for public feedback.
Renewable Energy: A Game-Changer
Another key provision in the directive could revolutionize how renewable energy is shared and used in Cyprus. Under the new rules, homeowners and businesses that generate their own solar or wind power—and have a smart meter installed—will be allowed to transfer excess energy to others, either for free or as part of a financial agreement.
This can happen in two ways:
1. Through an energy community – A group of households or businesses could collectively benefit from a shared renewable energy system, such as a large-scale photovoltaic installation.
2. Direct consumer-to-consumer transfers – An individual or company with surplus solar energy could provide it to another consumer, as long as the national energy regulator sets the necessary safeguards.
What This Means for Consumers
These changes could bring greater price stability, more competition, and increased access to renewable energy for everyday consumers. Fixed-rate contracts will protect households from sudden electricity price hikes, while the ability to share excess solar power could help lower costs and encourage more investment in green energy.
With Cyprus lagging behind in implementation, the big question now is: when will these consumer-friendly reforms actually take effect?
