Akel demands cheaper electricity

Opposition party Akel on Monday reiterated their call on government to make moves to drive down electricity costs for households and businesses, while demanding that light be shed on the affair of the liquefied natural gas (LNG) terminal at Vasiliko.

Akel boss Stefanos Stefanou made the comments after meeting with the leadership of the Natural Gas Public Company (Defa).

He said Cyprus must make the switch to burning natural gas for electricity generation as soon as possible, as the cost of burning heavy fuel oil is becoming prohibitive.

“Last year alone we paid about €350 million in greenhouse gas emissions allowances […] so it is imperative that [the LNG terminal] be completed as soon as possible.”

Stefanou stressed his party will “insist to the end” on a full investigation into the circumstances of the agreement concluded between Cypriot authorities and the Chinese-led consortium with the contract to build the LNG terminal.

“At long last in this country some need to stand to account and be punished,” he said.

Parliament will continue looking into this “scandal”, he added, but the ball is in the government’s court.

Elsewhere in his remarks, Stefanou said Akel have put to the government a number of proposals on how to provide relief to consumers hit by high electricity prices.

“We’re asking the government to take the initiative to cut VAT on electricity from 19 per cent to 9 per cent […] something which parliament had voted on, on Akel’s initiative. But that decision by parliament was deemed unconstitutional, and that’s why we want the government to pick up the baton.”

According to Akel’s own calculations, the state can afford to reduce VAT on electricity, given that on the other end it has been getting increased revenues on tax from fuel sales.

The communist party also wants a tax on the windfall profits of banks and energy companies – with the revenues distributed to the public in a targeted fashion.

Right now, said Stefanou, the ‘energy poverty’ index in Cyprus remains far above the EU average.

Akel also called on the government to promote competitive tenders for renewables. Stefanou noted that, in countries where such competitive tenders were held, electricity prices have come down.

“These and certain other things could be done by the government soon. What is needed is the political will, which to be honest we haven’t seen so far.”

Lastly, the Akel leader called for an extension on the electricity subsidies, set to expire at the end of March.