Filenews 30 September 2025 - by Chrysanthos Manoli
Today is an important day for the electricity market in Cyprus, since during it an electricity exchange will operate for the first time in the Republic of Cyprus and mainly the pre-day energy market, in the context of which offers will be made for the purchase and sale of electricity by producers and suppliers (individuals but also by EAC Production and EAC Supply) every half hour.
The first commercial transactions in the context of the Competitive Electricity Market will take place tomorrow, October 1st, so the pre-day market will have to operate today to "lock" the quantities of energy that will be poured out tomorrow, as well as the wholesale prices per half hour.
Today, the futures market will officially operate for the first time, with the submission of bilateral contracts maintained by energy suppliers with energy producers, with a sales and purchase program, on a longer-term basis (annual or multi-year).
Today's stock market premiere was preceded by a trial period of market operation, which started on January 7, 2025, but without monetary transactions. The degree of cooperation of some private producers or suppliers was not fully satisfactory and there is some concern as to their readiness to operate smoothly as of today, in competitive market conditions, with clearance every half hour, instead of the transitional period, during which the clearance was done on a monthly basis.
The Director of Electricity Market Operation of the Cyprus Transmission System Operator (TSOC), Konstantinos Varnavas, told Fileleftheros that, regardless of any problems that may arise during the first days of operation of the market, the proper functioning of the electricity system, i.e. the electricity supply of all consumers, will not be affected.
He said that consumers should not expect to see the benefits of running a competitive market from the first days, as suppliers should be given time to adapt and prepare flexible pricing for their customers. He also said that the market is a necessary element for a series of other actions that will benefit consumers in the future.
Speaking on Sunday to KYPE, Mr. Varnava explained that "through the tariffs of suppliers and with the appropriate consumption meters that record consumption every half hour, such as smart meters, prices can be structured that reflect the prices of the competitive market (wholesale market) in consumption (retail market)" and added that "consumers, then, they will be able to change the time they consume energy, in order to take advantage of low prices in the competitive market."
From the data so far, it is expected that low prices will be offered to the market in the midday hours and early afternoon, while in the late afternoon and early evening, when production will come from EAC units, the wholesale price per kilowatt hour will rise significantly.
Market stakeholders estimate that during the initial market period private suppliers will not show interest in penetrating household consumers, choosing to work with large commercial and industrial customers.
In addition, the TSOC's Director of Electricity Market Operation said that consumers who have their own production either individually, as active customers or "cooperatively" as energy communities can also indirectly participate in the market and added that the strengthening of the position of the consumer (consumer empowerment) is a key element of the energy model of the European Union which Cyprus also follows.
Asked by Fileleftheros whether the problems that had become apparent last week have been overcome, after the disagreement of officials of the System Control Service to take on auxiliary duties for the balancing market in the afternoon and evening hours, Konstantinos Varnava replied that the necessary arrangements have been made for the market to operate normally.
