The Cyprus Energy Regulatory Authority (CERA) has approved a proposal by the Electricity Authority Cyprus (EAC) for a 2.9% reduction in electricity prices because of lower production, transport and distribution costs, Phileleftheros reported on Friday.
But it noted that part of the benefit may end up being cancelled by costlier emission fees.
In its letter to the EAC, CERA also authorised the extension by another year to reduced pricing approved in 2017 for commercial and industrial bills, road lighting, pumping of water and thermal-storage room heaters.
The price drop follows last year’s pattern when CERA decided in May 2019 to reduce prices for Public Service Obligations (PSO), the special tariffs for vulnerable customers that saw a shift from €0.00083/kWh to €0.00071/kWh.
Renewable energy charges, which consumers pay through their bills, are reduced from one cent per kWh to half a cent.
However, Phileleftheros anticipates that these savings will be reversed by pollution emitter rights that will need to be purchased by the EU in 2020 as electricity demand increases but are expected to edge down again after 2020 when EAC will have finished installing anti-polluting technologies and liquified natural gas will have arrived at Vasilikos Power Station to be used in electricity production.