Filenews 18 September 2022
By Panikos Charalambous*
On Friday, September 9, the energy ministers of the European Union countries met in Brussels to discuss the issues of increased energy prices and to decide on measures to address the problems that arise. It was an extraordinary Energy Council, in which our Minister of Energy, Natasa Pilides, also took part.
The main topic of discussion was the imposition of a cap on the price of natural gas, but different opinions did not allow decisions to be taken. Many countries in Europe are heavily dependent on natural gas, with the result that electricity prices have skyrocketed. Countries such as Hungary and the Czech Republic opposed the European Commission's proposal to introduce a cap, as there is a risk that Russia will stop supplying the two countries with gas. In fact, Hungarian Foreign Minister Peter Sigiarto in a Facebook post, while attending the meeting of ministers in Brussels, noted that imposing a cap would mean "a hidden energy sanction. We have made it clear, we will not even talk about energy sanctions", underlined Mr. Sigiarto.
Note that a new extraordinary meeting of ministers has been scheduled for the end of September.
On another planet
Of course, as our minister said, we do not face any risk in terms of fuel supply to our country, nor are we affected by natural gas prices, since the production of electricity in our country is done with the use of oil. This, however, does not fundamentally change our position, as oil prices on the international market have also skyrocketed. Our country, Ms. Pilides pointed out to her counterparts, "is significantly affected by increased oil prices in all sectors, especially those related to electricity, transport and heating". I would add cooling as well. This year, in fact, the air conditioners with the prolonged high temperatures caught fire and burned our pockets.
The Minister is therefore right. All of us who live on this island live in practice every day what he has pointed out in fact because of the prices of oil. Especially the citizens with the lowest incomes and these are many. According to an announcement by the Statistical Service, dated August 18, "based on the results of the Survey on Income and Living Conditions 2021, with a reference financial year of 2020, 17.3% of the population or 154,000 people were at Risk of Poverty or social exclusion".
More specifically, "17.3% of the population lived in households with disposable income below the poverty line or lived in households with severe material and social deprivation or lived in households with a very low work intensity index".
At the same time, according to other data from the Statistical Service, 29% of employees had monthly earnings below €999: 10.9% between €750-999, 8% between €500-749 and 6.8% under €500. Add to the above the thousands of low-income pensioners, with pensions of €300, €400, €500 and €600.
Vagueness
During the meeting in Brussels, the Minister raised some issues that also concern Cyprus, but these were not specified in clear demands and without being linked to the aspirations of other members, in order to receive acceptance and promotion. Among other things, Ms. Pilides, as stated verbatim in the press release of her ministry, "referred to the need for collective action on the part of the EU, noting that any measures decided should take into account the different energy mix and the different reference points of each Member State, in particular the Member States that do not use natural gas (...). It also invited the European Commission to study how the Greenhouse Gas Allowance Trading System (ETS) can help reduce electricity prices."
That is, generalities and vagueness. This is when Cyprus, according to the survey "Household Energy Price Index for Europe - AUGUST 31, 2022", is the ninth most expensive country in Europe in terms of electricity for domestic use. At a time when many EU countries make electricity available to their households at prices three and four times lower. And it's just that we, our Government, are vague...
Current 395% more expensive
Cyprus, according to the survey "Household Energy Price Index for Europe - August 31, 2022", is in ninth place with 37 cents per kilowatt hour. The most expensive electricity is sold in Denmark for 54.52 cents, followed by Italy with 54.41 cents and the Netherlands with 51.10 cents. The cheapest electricity in the European Union is sold in Hungary for 9.36 cents, followed by Malta with 12.32 cents and Croatia with 14.81 cents. That is, in simple terms, electricity in Cyprus is more expensive than in Hungary by 395% and by 300% by electricity in Malta.
It is also noteworthy that the price of electricity in Cyprus is higher even than countries with a higher standard of living and multiple salaries and pensions than those of Cypriots. A great example is Luxembourg, where the price of electricity was 21.41 cents per kilowatt hour, which is 173% cheaper than in Cyprus.
On the floor the incomes- in the penthouse the electricity
What is also important is that the purchasing power of Cypriots (GDP per capita in purchasing power standards - PPS) is much lower than many EU countries that make the good of electricity available to their citizens at lower prices. Purchasing power in Cyprus, compared to the rest of Europe, is at 88% of the EU average and is in 15th place, while in relation to electricity prices it is in 9th place.
On the contrary, in Luxembourg, for example, where the average GDP per capita in PPS is at 277% of the European average and is 189% higher than in Cyprus, electricity per kilowatt-hour is cheaper than in our country, that is, at 21.41 cents, compared to 37 cents that we pay. In Ireland, the average GDP per capita in PPS is at 220%, 132% higher than in Cyprus, however the current per kilowatt hour is at 35.26 cents and in Belgium with an average GDP per capita in PPS of 121%, the current per kilowatt hour is at 36.5 cents.
INTERVENTION
Let go of generalizations and vagueness
In conclusion, I would say that our minister going to the EU and speaking generally and vaguely cannot satisfy us. We expected and expect our Government to be more specific and more demanding. Such as the temporary suspension of greenhouse gas emission trading, the temporary reduction of VAT and the immediate imposition of a special tax on renewable electricity companies to recover excess profits, to return overcharges to consumers. I fail to understand the delay that the Government is keeping in this matter.
The Government should also press the Electricity Authority to expedite the examination of applications for the installation of photovoltaic systems, as there is a delay. Also, to oblige EAC to a program of immediate reduction of those costs that are not related to its electricity production and to a medium-term program of economic consolidation.
We would also like the Government to explain to us why in Malta, an island in the Mediterranean, like Cyprus, the price of electricity is currently 12.32 cents per kilowatt hour, which is 300% cheaper than in Cyprus! Minister and Mr President of the Republic, what is it that they are doing in Malta better than we are in order to be able to dispose of the good of electricity to the country's households at prices three times lower? B.C.
* Journalist
