Energy reform: what will change for consumers from October 1

From October 1, 2025, a new era in electricity on Cyprus begins: a competitive electricity market opens, allowing households and businesses to choose their supplier and sign individual contracts. Until now, the sole provider was the state company AHK, but now private players are entering the market.

The main goal of the reform is to reduce prices and improve service quality. The so-called target model is being introduced, which makes pricing more flexible and closer to market mechanisms. However, experts warn that a sharp drop in prices should not be expected. Electricity production in Cyprus still largely depends on fossil fuels, and the cost of purchasing CO₂ emission quotas remains high.

For consumers, this primarily means the emergence of choice. If previously conditions were dictated by a single supplier, now different companies will compete on tariffs and service quality.

How this will affect consumers

Residents will have the opportunity to compare tariffs and choose the most favorable. Some suppliers will offer fixed rates, others — flexible prices depending on fluctuations in the wholesale market.

Competition will also affect service levels: companies will strive to attract customers with convenient digital services, transparent payment terms, and faster support.

Despite the increase in competition, a significant reduction in bills may not occur: high production costs and environmental expenses will continue to influence the final price.

What consumers should do

1. Compare offers: consider not only the price per kilowatt-hour, but also additional fees and payment conditions.
2. Check the reliability of the supplier: prefer companies with transparent conditions and a stable reputation.
3. Analyze your consumption: for homes and businesses with high energy use, fixed packages that protect against sudden price fluctuations are more advantageous.
4. Invest in renewable energy: installing solar panels and participating in net metering programs can further reduce bills.

The transition to a competitive market will be gradual, but in the near future, Cypriots will be able to choose their electricity supplier and influence their expenses. The success of the reform largely depends on how actively consumers use the new opportunities.