The government has the ability to reduce electricity prices for households and businesses if it chooses to do so, the Cyprus Consumers Association said on Monday.
In a statement, the association accused certain market players of profiteering at the expense of consumers, claiming this is happening with the government’s approval.
It argued that companies generating electricity at a cost of around 5 to 6 cents per kilowatt-hour are allowed to sell it, through the Electricity Authority of Cyprus, at prices ranging between 20 and 30 cents per kilowatt-hour.
The association also pointed to increased VAT revenues collected by the state, suggesting that both private operators and the government benefit from the current pricing structure.
As a result, it said, consumers are being unfairly burdened with excessive energy costs.
“If the government wishes, it is within its power to significantly reduce the cost of electricity for households and businesses,” the association concluded.