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18 July, 2024
 
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Will Cabinet decide to extend electricity subsidies?

This is what's at stake in tomorrow's cabinet meeting

Newsroom

The government is poised to discuss the renewal of the electricity subsidy measure, set to expire on June 30, at its upcoming Cabinet meeting, according to a report by Kathimerini's Hectoras Georgiou.

Amidst a heatwave and concerns over electricity tariffs, the Council of Ministers will scrutinize the economic aspects of the proposal. Sources indicate the government aims to extend the subsidy through July and August to alleviate consumer costs during the summer.

Consumers' Association President Marios Droussiotis emphasized the importance of continuing the subsidy, noting it saves average households about 20 to 25 euros every two months, as reported by Kathimerini.

Meanwhile, EAC spokeswoman Christina Papadopoulou highlighted that the current electricity cost stands at 30 cents per kilowatt-hour. She mentioned international reductions in fuel prices could potentially lower electricity costs, but cautioned that these reductions might not offset tariff increases if the government ends the subsidy.

Additionally, the government plans to extend the zero VAT rate on basic goods beyond electricity, a move expected to be disclosed at the Cabinet meeting. This initiative, initially implemented in May 2023 for nine categories of basic goods and expanded last December to include meat and vegetables, aims to mitigate consumer expenses on essential items.

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Cyprus  |  energy  |  economy  |  consumer

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