The government on Tuesday hinted it may extend some of the relief measures it introduced last November such as subsidising electricity bills beyond the end of the month.
Taking journalists’ questions, government spokesman Konstantinos Letymbiotis confirmed the administration is considering extending the measures set to expire at the end of February.
The president has instructed the finance minister to assess the situation, after which a decision would be taken prior to the expiry date of the relief measures currently in force.
Asked about potential coming hikes in electricity rates telegraphed a day earlier in parliament by the energy regulatory authority Letymbiotis said that on Tuesday the energy minister had a scheduled meeting with the new board of the Electricity Authority of Cyprus. The issue of the possible electricity rate increase would be discussed there.
A day earlier, the energy regulator had warned that the state-run power utility might jack up its basic tariff by 25 per cent should it win an ongoing court case.
In a statement also on Tuesday, Dipa MP Marinos Mousiouttas said his party will ask President Nikos Christodoulides to keep in place the electricity subsidies.
Dipa is part of the government coalition.
Mousiouttas said households cannot take the “huge” rate hike that the EAC is contemplating. Nor can they cope with the general high level of electricity bills due to greenhouse gas emissions allowances.
To this end, he added, the government must broaden the scope of the Photovoltaics for All scheme.
The current measures designed to alleviate the cost-of-living crisis began at the start of November last year and apply to the end of February.
They concern a staggered electricity subsidy applying to residential, commercial, and industrial consumers. The subsidy rate is based on consumption, except for ‘vulnerable’ consumers who qualify for a 100 per cent subsidy on any increases in the basic tariff.
The government also reduced the tax on fuel by 8.33 cents per litre, for the same period, and it cut consumption tax on heating oil by 6.39 cents per litre from December until March.
Additionally, VAT on meat and vegetables was scrapped between December 2023 and the end of May this year.
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