Two Oil Policies Ahead For The Summit In Riyadh OPEC

THE price of electricity will definitely go up, though the extent of the rises cannot yet be estimated.

The head of the Electricity Authority of Cyprus’ (EAC) board of directors, Harris Thrassou, yesterday pointed out that everything depended on the international price of crude oil.

He added that the EAC was in contact with the Finance Ministry, requesting to be taxed in the same way as other private companies.

The EAC has to pay 25 per cent in taxes plus three per cent of its surpluses to the state, adding up to £110 million for the past five years. Private companies have to pay just 10 per cent in taxes.

The Authority has also requested that the government stop receiving dividends until oil prices have stabilised and natural gas has been imported to Cyprus.

If the EAC’s demands are accepted, said Thrassou, then they could cover the annual fine of €20 million – imposed by the European Union for not using natural gas – without it affecting consumers.

“The fact that the price of electricity will change is clear. But we can’t know by how much,” said Thrassou.

“It will all depend on the international oil prices. There could even be a reduction.

What happened from last year until this year, is that crude oil has increased by 56 per cent and the cost of electricity increased by 27 per cent.”

“Regarding tax, we are preparing a letter asking for the EAC to be taxed like other private companies and if it is possible for the government to stop taking dividends until the situation is clarified, both with oil prices and natural gas.”