High Electricity Prices Spark Presidential Palace Protest in Cyprus
"Direct Democracy Cyprus leader Fidias Panayiotou led a protest to the presidential palace demanding urgent government intervention against soaring electricity and fuel costs. A formal petition urged President Nikos Christodoulides to classify energy as a basic necessity, enact permanent VAT reductions, and accelerate renewable storage to alleviate mounting financial burdens on households and businesses."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
Nicosia, Cyprus – Direct Democracy Cyprus leader Fidias Panayiotou spearheaded a protest march to the presidential palace on Saturday, demonstrating against the escalating cost of electricity and fuel. Protesters submitted a letter to President Nikos Christodoulides, urging the government to officially recognise electricity and fuel as basic necessities.
The letter articulated a nationwide demand for reduced electricity prices, stating that no household or small-to-medium-sized business should face deprivation of essential services due to insurmountable energy expenses. It underscored that electricity is "not a luxury, but a basic requirement for decent living and social wellbeing," yet its cost continues to "significantly burden family budgets and the competitiveness of local businesses."
Citing figures from the state statistical service, Cystat, the protest highlighted a 15% increase in energy prices between August of last year and August of the current year. The letter noted that for minimum wage earners, electricity bills, rent, food, and transportation absorb a substantial portion of their disposable income, with 1,000 kilowatt hours of electricity potentially costing consumers up to €295 on a single household bill. It further claimed that Cypriot consumers are being penalised for policies beyond their control, including high electricity production costs, expensive fuel, a lack of storage for renewable energy sources, high value-added tax (VAT), and the state's reliance on temporary and insufficient consumer relief measures.
Among the key policy demands presented were a "permanent reduction in VAT to five per cent" on electricity. While the government has already committed to a reduced VAT rate for electricity bills until at least the end of March, applying a similar reduction to fuel would violate European Union law, which mandates a minimum VAT rate of 15% for most products sold within the bloc, with no exceptions for fuel.
Another demand called for a "review of the costing of pollutant rights" under the EU's emissions trading system (ETS). However, the ETS operates on a market principle, with carbon emission allowances auctioned to member states rather than sold at a fixed price by national governments. The letter also requested "direct targeted subsidies from pollutant revenues for vulnerable households and investment in the network." While using these subsidies to invest in Cyprus' electricity network would be permissible under EU law, which allows ETS funds for industrial decarbonisation, energy transformation, clean technology, climate change adaptation, transport decarbonisation, and just transition initiatives, direct household subsidies from these specific funds are generally not permitted under current regulations.
Further demands included the "readjustment of proper pricing to take advantage of renewable energy prices," "targeted support for vulnerable households and small and medium-sized businesses," "the immediate installation of batteries for energy storage," and "transparency in the process of adjusting production costs, network costs, and supply costs." The protesters also called for "effective measures to limit energy costs," "transparent electrical interconnection" with other countries, "natural gas without delays," "substantial long-term strategic planning," and "market liberalisation." However, the demand for market liberalisation appeared to contradict several other demands for price controls and state intervention. The letter concluded by advocating for "the end of cartels and the strengthening of real competition," "market restructuring with real options for cheap electricity for households," "mandatory transparency," and "regular information on prices and the benefit of renewable energy."