Electricity extras now over 30 per cent of bills

AS ELECTRICITY prices are set for a further rise, the House Commerce Committee yesterday said it will ask the European Union whether Cyprus can cut VAT on electricity from 15 per cent to 8.0 per cent. 

Blaming the government, committee chairman Lefteris Christoforou suggested that the additional charges imposed on basic electricity bills were now over 30 per cent.

“We will send a letter to the EU energy commissioner and ask whether Cyprus can cut VAT on electricity from 15 per cent to 8.0 per cent as other EU countries have done,” Christoforou said. “The aim is to ease Cypriot consumers from this tax storm.”

Apart from VAT, fluctuating fuel surcharges, and another charge that goes towards renewable energy sources (RES), Cypriot consumers are now paying an extra 6.96 per cent – 8.0 per cent when VAT is included -to help the Electricity Authority of Cyprus (EAC) cope with the extra costs incurred after the main power station was incapacitated by the July 11naval base blast at Mari. 

On top of all that, consumers are now faced with a fresh hike of 1.5 per cent expected to kick in on January 1, 2012.

This is part of a 4.5 per cent rise on basic rates decided at the end of 2009 and spread over three years.

But the island’s energy regulator (CERA) warned yesterday that it may not give the green light for the hike if the EAC does not tidy up its finances.

The EAC said it is cutting its operational costs by 10 per cent in 2012.

EDEK MP Giorgos Varnava said his party agreed with CERA and went a step further.

“We say that if the EAC, which we support, does not implement its pledge then CERA should take away the 3.0 per cent imposed the two previous years,” Varnava said.

Meanwhile, the telecommunications authority, CyTA, is looking into cutting its fixed rate for land lines.

 

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