electricity market — For the first time, citizens and businesses in Cyprus can choose their electricity supplier, marking a significant shift in the country’s energy landscape. Government spokesman Konstantinos Letymbiotis announced the opening of the long-awaited competitive energy market on Thursday during a press briefing at the presidential palace.
Letymbiotis described this initiative as “a new page in the energy course of our country”, with nine energy producers now vying for the attention of consumers. As of Wednesday, individuals and enterprises can explore a competitive environment to select their preferred electricity provider.
Electricity market: A Shift Towards EU Standards
The new market structure follows the European Union’s target model, which Letymbiotis explained is akin to an energy exchange. He stated that this model introduces much-needed transparency, reliability, and rules similar to those in most EU nations. Prices will be determined through forward, day-ahead, and real-time balancing mechanisms designed to keep costs fair for consumers.
In his remarks, Letymbiotis acknowledged that these reforms should have been implemented in 2021. He reflected on the past, noting that Cyprus had been stuck in a transitional period plagued by delays that ultimately harmed consumers and the nation’s energy strategy. “Through persistent preparation, we have now made reality what for years remained on paper,” he asserted.
Empowering Consumers and Businesses
The benefits of the competitive market are expected to be profound for consumers. They will now have the opportunity to compare prices, select suppliers that best meet their needs, and even access green energy products. From January 2026, changing suppliers will take just 24 hours, free of charge, ensuring full transparency throughout the process.
Businesses, too, stand to gain from this competitive landscape. Letymbiotis highlighted that the ability to negotiate with multiple suppliers could lead to better pricing and tailored solutions, ultimately helping to reduce operating costs. He also pointed to the potential for participation in energy-saving and renewable programmes to bolster competitiveness.
However, he tempered expectations, noting that immediate price reductions may not materialise. He drew a parallel to the telecoms market, where increased competition eventually led to improved efficiency and competitiveness. He believes the same will happen with the Electricity Authority of Cyprus (EAC).
Concerns from Opposition
Not everyone shares the government’s optimistic outlook. The opposition party Akel voiced concerns regarding the timing and execution of the market launch. They pointed out that the delays allowed certain private renewable producers to reap excess profits, raising questions about whether this new market structure will genuinely bring down electricity costs for households and businesses.
Akel stated, “The critical question is whether this market, as designed, will bring about real reductions in electricity costs for households and businesses. So far, the government has not given a clear answer.” They echoed the European Union’s apprehensions, warning that the current model might keep consumers locked into high prices.
In its criticism, the party argued that any substantial relief would only come with the introduction of natural gas for power generation, increased integration of renewables into the EAC’s energy mix, improved storage solutions, energy-saving initiatives, and tax reductions. They accused the government of falling short on these fronts.
A Vision for the Future
In response to the opposition’s concerns, Letymbiotis reiterated that the reforms are part of a broader strategy aimed at enhancing sustainability and energy security for Cyprus. He emphasised that alongside the new competitive market, the government plans to incorporate more renewable energy sources, improve storage capabilities, and upgrade the energy network.
He firmly believes that these combined efforts will ultimately lead to reduced costs and stronger energy security. Letymbiotis concluded, “This policy will reduce costs, strengthen sustainability and ensure energy security for Cyprus.” As the competitive electricity market unfolds, its true impact on consumers and the broader economy remains to be seen.
