THE ENERGY Services of the Commerce Ministry said yesterday it had not axed the scheme that gives subsidies to householders for energy saving technologies.
Solon Kasinis, the head of the Energy Services said contrary to reports, they did not plan to terminate the scheme. Reports suggested that 6,000 applicants previously approved for subsidies for 2009 would be left high and dry to the tune of €7 million in total.
‘I can assure that we are going to proceed with all the applications until the end of 2009,” said Kasinis. “All will be appraised and given the money.”
The subsidies can be used to install thermal insulation and photovoltaic solar panels in existing homes and for purchasing hybrid, electric cars and other types of low-emissions vehicles but the government only pays out the money to grantees after they make their purchases.
Kasinis did say however that in order to continue running the subsidy programme for energy-saving purchases the government would need to either double the levy on consumers’ electrical bills from the current 22 cents to 44 ents or reduce the amount of the subsidies.
“The Ministry is committed to not dropping this scheme but is examining the possibility of modifying this scheme,” said Kasinis.
“In case the levy is not approved our opinion is that we must modify the degree of the subsidies and not drop the scheme but it is a matter of a decision by the Council of Ministers,” he said.
Despite Kasinis’s assurances the Energy Services has consulted with the Attorney-general to determine whether it is legally obligated to honour 2009 applicantions. The Service sent a letter last to the AG last Wednesday outlining its concerns and expects a decision next week.
“The Attorney-general will advise us if we are committed to pay the money or not,” said Kasinis. “I believe we are committed. I do not believe he will say we are not, so we will have to wait.”
Also the Ministry has not opened the subsidy application process for 2010 and subsidies are not currently part of the budget, said Kasinis.
The scheme for energy-saving purchases was implemented in 2003 and has paid out €50 million to the public since then. The tax levied on consumers to pay for the programme was the lowest in the EU, according to Kasinis.
“This scheme has to continue for the benefit of Cyprus, for the energy independence of Cyprus,” he said.
