Cyprus electricity authority ends storage heater tariff subsidies

The Electricity Authority of Cyprus (EAC) has officially ended the subsidy for storage heater tariffs, following a directive from the Cyprus Energy Regulatory Authority (CERA). According to EAC spokesperson Christina Papadopoulou, the change has been in effect since May 1, 2026, requiring consumers to pay the standard per-kilowatt-hour rate applicable to their premises instead of the previously discounted rate.

This decision marks the conclusion of a transition period that began in 2017, when new electricity tariff policies were introduced to ensure consumers pay the actual cost of energy without cross-subsidization. At that time, it was estimated that removing the subsidy would cause a 49% increase in costs for storage heater users. To mitigate the impact, the EAC had voluntarily covered the price difference to allow consumers sufficient time to switch to alternative heating systems. The subsidy remained in place until recently, extending beyond the official opening of the competitive electricity market on October 1, 2025, but the utility body stated that it is no longer financially feasible for them to continue this support.