High electricity costs persist in Cyprus despite market reforms

The cost of electricity in Cyprus has become a critical economic and social issue, placing significant strain on both households and businesses as of September 2026. Despite the implementation of a Competitive Electricity Market (CEM) and increased usage of renewable energy sources, energy prices remain elevated, fueling inflation across the production chain, from food prices to manufacturing and services.

Data from the Electricity Authority of Cyprus (EAC) for June-July 2026 shows that a typical residential consumer with a bimonthly consumption of 1,000 kWh pays approximately €295, averaging 29.5 cents per kWh. Production costs, driven primarily by heavy reliance on expensive liquid fuels and carbon emission fees, account for roughly 77% of this bill, or 22.7 cents per kWh. Analysts argue that the current market reforms have failed to deliver promised competition or tangible financial relief to consumers.

The persistent high costs are attributed to the lack of adequate energy storage and continued dependence on polluting conventional generation units. Moving forward, there are growing calls for a strict accountability report regarding the delays in energy sector restructuring and the excessive financial burden currently being transferred to the public.