Minister says we will have to wait and see whether electricity prices drop in competitive market

12:34 - 30 May 2025

Economy Reporter

The competitive electricity market has not been extensively tested in smaller markets like Cyprus, and therefore "we will see as we go along" whether electricity prices will decrease, Energy Minister, George Papanastasiou, has said.

The Cyprus Energy Regulatory Authority (CERA) announced on Wednesday, 28 May that the commercial operation of the Competitive Electricity Market is set for 15 September, 2025, with 1 October, 2025, designated as the first Trading Day.

The Cyprus Competitive Electricity Market is a restructured energy framework designed to transition the country's electricity sector from a monopolistic to a fully liberalised system, and bring down the cost to consumers.

Asked by CNA whether the transition to a competitive electricity market will lead to a decrease in the final electricity price for consumers, the Minister said that historically, in other, larger markets, prices usually remained stable when the competitive market was first launched, and then gradually fell due to competition. "In a smaller market, which hasn’t been tested often, we’ll have to see how they evolve", he said. In any case, he noted, the Ministry reserves the right to intervene "if we see that things are heading in the wrong direction."

The Minister noted that the trial period, which began in January 2025, usually lasts for six months, and the due date was in July 2025. "CERA decided it wouldn’t be appropriate to make the transition during the summer when demand is high, so it was postponed to September", he said, to allow room for better handling any minor issues that may arise.

(Source: CNA)

Minister says we will have to wait and see whether electricity prices drop in competitive market

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