Nicosia: The Competitive Electricity Market was launched on Wednesday in Cyprus, with the Minister of Energy, Commerce and Industry, George Papanastasiou, stating that competition should reduce the cost of electricity for the consumers.
According to Cyprus News Agency, George Papanastasiou highlighted the dual significance of the day, marking both the 65th anniversary of the Republic of Cyprus and the inauguration of the Competitive Electricity Market. He expressed that the decision for the market was made in 2019, and although it was expected to open two years later, it has only now commenced in 2025. This market aims to offer consumers the option of choosing from different suppliers.
The Minister emphasized the goal of achieving cost-reflective production from Renewable Energy Sources (RES) within the Competitive Market. He indicated that an increased share of RES in the electricity mix is expected to drive down electricity costs in Cyprus.
When questioned about the apparent lack of interest in supplying household consumers, Papanastasiou remarked that a truly free market should target all consumers. He expressed a desire for suppliers to incentivize household consumers to ensure a diverse customer mix, not just large businesses.
Papanastasiou stressed the crucial role of competition, noting that there are currently 8-9 suppliers in the market. He explained that these suppliers must engage in a competitive process, purchasing electricity from various sources every half hour, akin to a stock exchange. This approach is intended to lower the electricity cost for the final consumer through smart buying and selling strategies.