Newsroom
A reduction in VAT on electricity bills will take effect tomorrow, bringing relief to consumers, especially vulnerable households. The VAT on electricity will drop from 19% to 9%, meaning savings for many households across the island.
According to Christina Papadopoulou, spokesperson for the Electricity Authority of Cyprus (EAC), the move will benefit around 500,000 household users. For example, a household using 800 kilowatt-hours every two months will see its bill drop by roughly 20 euros, from 246 euros to 225 euros. Households with higher usage will see even greater savings, with those using 2,000 kilowatt-hours benefiting twice as much.
The new VAT reduction applies to bills for electricity usage between April 1, 2025, and March 31, 2026.
**EAC Moves Forward with Tender for New Generators in Dhekelia**
In other news, the EAC is moving ahead with a new tender process to supply generators, following the cancellation of the previous one. The two companies that had submitted bids, TERNA and AVAX, did not appeal the cancellation and are expected to participate in the new tender.
Papadopoulou confirmed that the EAC Board of Directors will soon meet to announce the new tender. The goal is to have two 40-kilowatt-hour units installed and operational by summer 2026. These units are crucial for improving the electrical system, especially given the aging unit in Dhekelia.
However, Papadopoulou clarified that while these new generators will help the system, they won’t lead to further reductions in electricity prices.
The EAC is working closely with the General Accounting Office to ensure the new tender moves forward smoothly and in line with legal procedures.
