For the first time, citizens and businesses in Cyprus can choose their electricity supplier as the country officially opens its competitive electricity market. Government spokesman Konstantinos Letymbiotis announced this significant development on Thursday, describing it as a milestone in the nation’s energy landscape. Speaking at the presidential palace, he remarked that this change marks a “new page in the energy course of our country,” with nine producers now vying for customers in a transparent and open system.
As of Wednesday, consumers have the ability to select their preferred provider from the competitive environment, a move that aligns with the European Union’s target model. Letymbiotis explained that this model operates similarly to an energy exchange, introducing transparency and reliability to the market, with pricing determined through various mechanisms including forward contracts and real-time balancing.
The transition to a competitive market had been delayed, with Letymbiotis acknowledging that it should have been implemented in 2021. He stated, “For years, our country remained in a regime of delays, in a transitional period, with distortions that harmed consumers and the country’s energy strategy. Through persistent preparation, we have now made reality what for years remained on paper.”
Consumers stand to gain significantly from this reform. Letymbiotis noted that they can now compare prices and choose suppliers that best meet their needs, including options for green energy products. By January 2026, the process for switching suppliers will become even more streamlined, taking just 24 hours and incurring no costs.
Businesses, too, are expected to reap the benefits of this new competitive landscape. With multiple suppliers to negotiate with, companies can secure better prices and tailored energy solutions, ultimately reducing their operating costs. Letymbiotis highlighted the potential for participation in energy-saving and renewable programmes to further enhance competitiveness. He cautioned, however, that while immediate price reductions may not be evident, the introduction of competition will eventually drive positive changes.
Drawing a parallel to the telecoms market, he stated, “We have seen this before, through the opening of the telecoms market. Cyta not only survived but became more efficient and competitive. The same will happen with the Electricity Authority of Cyprus (EAC).”
However, the opposition party Akel raised concerns about the launch of the competitive market. In a statement, they expressed that the opening came after prolonged delays, which allowed some private renewable producers to profit excessively. The party stressed that the crucial question remains whether this new market structure will genuinely deliver lower electricity costs for households and businesses. They pointed out that the government has yet to provide a clear response on this matter.
Akel also referenced concerns raised by the European Union, warning that the current market model risks keeping consumers trapped in high prices. They argued that meaningful relief would hinge on the introduction of natural gas for power generation, increased integration of renewables into the EAC’s energy mix, improved storage capabilities, energy-saving initiatives, and tax reductions. They accused the government of failing to make progress on these key issues.
In response to these criticisms, Letymbiotis reiterated that this reform is part of a broader energy strategy. He asserted, “Combined with more renewables, storage, network upgrades and natural gas, this policy will reduce costs, strengthen sustainability and ensure energy security for Cyprus.” The government remains optimistic that the competitive electricity market will provide long-term benefits, transforming how energy is supplied and consumed across the island.
