THE finance ministry opposes a cut in VAT on electricity unless the lost revenues are recovered by other means, lawmakers heard yesterday.Senior ministry official Andreas Charalambous told MPs that the economy is going through a very difficult time and the state cannot afford to lose any revenues.On Monday, Finance Minister Vassos Shiarly said fresh measures were on the way to cover a €200 million shortfall in the deficit target, which was set at 2.5 per cent for 2012.“We do not have the luxury of losing any revenues,” Charalambous said, without covering this loss through other means.The ministry estimates that slashing VAT on electricity from 17 to 8 per cent would result in a loss of state revenues ranging from €25 million to €30 million... 4 comments

 ACCORDING to one estimate by the University of Cyprus the catastrophic explosion at Mari in July 2011, which knocked out the Vassilikos power station cost the Cyprus economy a staggering 2.4 per cent reduction in GDP (on an annual basis). Exacerbating the already financially strained Cyprus economy, the disaster literally compelled the government to seek alternative sources for refinancing the burgeoning national debt. Remarkably, almost one year on hardly anybody from the political realm mentions the impact the consequent power cuts inflicted on the Cypriot economy. ... 6 comments

 THE FIVE-HOUR black-out, experienced on Wednesday morning all over Cyprus, served as a reminder of the fragility of our electricity supply system. The system shut down automatically because of a fault in the electricity system in the north with which it has been connected since the Mari blast.The Electricity Authority of Cyprus (EAC) could not rule out similar power cuts in the future, although steps were being taken to reduce the probability of it happening again. Measures could be taken to reduce the probability, said the EAC general manager yesterday, but this would incur additional costs. The EAC chairman subsequently said that the additional cost would not be passed on to the consumer, but such assurances mean nothing. ... 4 comments

STARTING today, the government is beginning an “intensive dialogue” with Noble Energy on how and when natural gas from Block 12 can be extracted and brought onshore, Commerce Minister Neoclis Sylikiotis said yesterday.The talks with the US company are expected to last two to three months, the minister said after a meeting with the board of directors of the electricity authority (EAC) and the chairman of the Natural Gas Public Company (DEFA).“Through this dialogue all the matters relating to planning for the advent of natural gas are to be straightened out,” said Sylikiotis... Read on

CYPRUS will join over 100 countries in taking part in Earth Hour, a worldwide event this Saturday, that encourages people to save electricity and fight global warming, by switching off their lights for an hour.The event is organised by the World Wide Fund for Nature (WWF) with this year’s campaign slogan being ‘I will if you will.’Various events will be held islandwide including at the Presidential Palace where President Demetris Christofias will host an official event.Strovolos Municipality, along with various municipalities across the island, will be switching off their town hall lights from 8-9pm in aid of the event. They also encourage residents to do the same... 4 comments

 IN AN apparent change of heart, the administration said yesterday it plans to ask the European Union’s consent to lower the VAT levied on electricity here from 17 to 8 per cent.Less than a month ago, the government said there was no chance of that happening.But during a session of the House Commerce Committee yesterday, Finance Ministry officials told MPs that the government would be requesting a consultation with the EU VAT Committee to discuss the matter.It’s understood that the government’s proposal for a lower VAT rate applies to domestic users only.‘This would reduce electricity bills for consumers by around 10 per cent,” said Commerce Committee chairman Lefteris Christoforou... 7 comments

THE electricity authority (EAC) will pay some €116 million this year to third parties in a bid to have sufficient power, as its main power plant – crippled in a munitions blast last year – is not expected to be restored until mid 2013, it emerged yesterday.EAC chairman Haris Thrasou told lawmakers of the House Finance Committee that the Vassilikos power station is being restored gradually and is expected to be up and running in May next year.Destruction of the plant in July 2011, forced the EAC to lease generators and buy electricity from Turkish Cypriots – a move that has been and continues to be criticised.The EAC has budgeted around €63.8 million for the power provided by the Turkish Cypriots through the Green Line Regulation... 11 comments

THE ELECTRICITY Authority of Cyprus (EAC) said yesterday it would allow those with unpaid bills to join its instalment scheme, which spreads out the cost over a 12-month period. “To help household consumers who are facing difficulties pay their bills, the EAC decided that from now own, consumers with unpaid bills can be included in the current monthly instalment scheme,” the authority announced.Under the scheme, consumers can pay a fixed amount every month to be calculated based on their estimated usage. At the end of the 12-month period, the amount is then adjusted either up or down, depending on actual consumption throughout the period... 5 comments

FED UP with hefty bills, consumers yesterday called for an end to the monopoly of semi-state electricity company (EAC) as main opposition DISY said it would table a proposal reducing VAT on household bills to 8.0 per cent.Opposition MPs said the lost revenue from lowering VAT to household consumers would cost the state around €20 million and not €60 million as government officials had said previously.However, consumer groups, who have been receiving numerous complaints from people who cannot afford to pay their electricity bills, called for more drastic measures... 15 comments

JUST A few protesters gathered outside Parliament yesterday morning where they set fire to electricity bills in protest over high electricity prices.“We’re not focusing on the numbers but the point is that we’re not giving up,” said Helen Pierides, one of the protesters.An initial demonstration took place last week islandwide, however despite the disappointing turnout with only about 20 turning up for the event outside the EAC in Nicosia, a second protest was organised.The ongoing protests are being organised jointly by two Facebook groups: One Voice-Facebook Group against the EAC and End Unfair Electricity of Cyprus Monopoly, who have garnered over 8,000 members between them... 5 comments