The Electricity Authority of Cyprus is one of the most expensive electricity companies in Europe, according to latest Eurostat data. The electricity in Cyprus is more expensive than almost all European countries, while EAC’s bills show the biggest increases in Europe.
The electricity prices for the households are among the highest in Europe, following those of the Scandinavian countries, Germany, Austria and Belgium. The Cypriot households pay €18.58 per 100 kilowatt-hours, while in Europe the average cost stands at €16.76.
Excluding the taxes, which are low in Cyprus, the power costs higher than in any other European country but Italy.
The record high, however, is observed in the prices paid by the businesses, which is the highest in Europe.
The Cypriot businesses pay €15.05 per 100 kilowatt-hours, while the average cost in Europe hardly stands at €10.37.
“It is normal for a country such as Cyprus – with this size – to have higher electricity prices since we don’t have economies of scales as other EU countries have” EAC spokesman, Costas Gavrielides told StockWatch.
But why the electricity for businesses is more expensive than in other small EU member states such as Denmark, Slovakia, Estonia or Ireland?
EAC says…
The Authority supports that the increased cost is attributable to the fact that the system of Cyprus is isolated and there is no connection with other systems of neighbouring countries as in Europe.
“Therefore, EAC produces all quantity of electricity needed apart from the anticipated maximum demand, while – if otherwise – it would be able to buy part of the quantity with less cost and there would be no underemployment of its equipment”, he said.
“Another significant reason for the increased cost is also the choices that Cyprus has in fuel, which are restricted (there is no nuclear or water energy)”, he noted.
EAC stressed that the fuel prices are determined automatically by the increase/decrease in the price of crude.
Increases
Apart from the high prices, EAC has another negative lead too; that of the highest annual increases.
For the households, the prices recorded the second highest annual increase in the EU (after Lithuania), while for the businesses it was, indeed, the highest.
In a year only, the prices rose by 19.60% for the households and by 26.9% for the industries.
According to Mr. Gavrielides, “taking into account that the increase in the cost of fuel in 2010 was of 42.9%, the increase is justified”.
The average increase in EU27 hardly stood at 2.02% for the households. On the other hand, in the businesses it dropped to 2.54%.
Reduction of EAC operating cost
The high cost has raised concerns to the business world, since it pushes the cost of production sharply up.
“The cost of electricity is very high in Cyprus. A large part of this emerges from the cost of EAC’s fuel”, CCCI Deputy General Secretary, Marios Tsiakkis said.
“What we could do is a revision in the way of calculation of the price on the basis of the maximum demand but also an effort on behalf of the Authority to reduce its operating expenses”, he added.
“The further liberalization of the electricity market with the admittance of individuals in the purchase and sale of electrical energy will contribute towards the drop in electricity prices”, he concluded.
The electricity prices for the households are among the highest in Europe, following those of the Scandinavian countries, Germany, Austria and Belgium. The Cypriot households pay €18.58 per 100 kilowatt-hours, while in Europe the average cost stands at €16.76.
Excluding the taxes, which are low in Cyprus, the power costs higher than in any other European country but Italy.
The record high, however, is observed in the prices paid by the businesses, which is the highest in Europe.
The Cypriot businesses pay €15.05 per 100 kilowatt-hours, while the average cost in Europe hardly stands at €10.37.
“It is normal for a country such as Cyprus – with this size – to have higher electricity prices since we don’t have economies of scales as other EU countries have” EAC spokesman, Costas Gavrielides told StockWatch.
But why the electricity for businesses is more expensive than in other small EU member states such as Denmark, Slovakia, Estonia or Ireland?
EAC says…
The Authority supports that the increased cost is attributable to the fact that the system of Cyprus is isolated and there is no connection with other systems of neighbouring countries as in Europe.
“Therefore, EAC produces all quantity of electricity needed apart from the anticipated maximum demand, while – if otherwise – it would be able to buy part of the quantity with less cost and there would be no underemployment of its equipment”, he said.
“Another significant reason for the increased cost is also the choices that Cyprus has in fuel, which are restricted (there is no nuclear or water energy)”, he noted.
EAC stressed that the fuel prices are determined automatically by the increase/decrease in the price of crude.
Increases
Apart from the high prices, EAC has another negative lead too; that of the highest annual increases.
For the households, the prices recorded the second highest annual increase in the EU (after Lithuania), while for the businesses it was, indeed, the highest.
In a year only, the prices rose by 19.60% for the households and by 26.9% for the industries.
According to Mr. Gavrielides, “taking into account that the increase in the cost of fuel in 2010 was of 42.9%, the increase is justified”.
The average increase in EU27 hardly stood at 2.02% for the households. On the other hand, in the businesses it dropped to 2.54%.
Reduction of EAC operating cost
The high cost has raised concerns to the business world, since it pushes the cost of production sharply up.
“The cost of electricity is very high in Cyprus. A large part of this emerges from the cost of EAC’s fuel”, CCCI Deputy General Secretary, Marios Tsiakkis said.
“What we could do is a revision in the way of calculation of the price on the basis of the maximum demand but also an effort on behalf of the Authority to reduce its operating expenses”, he added.
“The further liberalization of the electricity market with the admittance of individuals in the purchase and sale of electrical energy will contribute towards the drop in electricity prices”, he concluded.
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