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EAC Responds to Photovoltaic Compensation Claims, VAT on Electricity Reduced to 5%

Published March 27, 2026, 20:30
EAC Responds to Photovoltaic Compensation Claims, VAT on Electricity Reduced to 5%

The Electricity Authority of Cyprus (EAC) responded to questions regarding compensation for energy surpluses from photovoltaics and the new government measures to reduce electricity costs. EAC spokesperson, Christina Papadopoulou, clarified that the EAC faithfully follows the plans of the Ministry of Energy and that consumers have signed contracts that do not provide for compensation for energy surpluses. If compensation is decided by the state, it will not come from the EAC. In addition, a further reduction in VAT on electricity from 9% to 5% from May 1st was announced, as a measure to limit increases in bills due to rising international fuel prices. The EAC is trying to manage fuel reserves flexibly, buying loads when prices are more favorable, in order to mitigate costs. The price per kilowatt-hour is around 26 cents.