Nicosia, Cyprus. Cyprus’s Electricity Authority (EAC) said electricity bills could rise by as much as 20% by August if Brent crude prices fluctuate between $110 and $115 a barrel. The utility cited heightened volatility in global energy markets linked to developments in the Persian Gulf.
Price outlook and market volatility
The EAC held a news conference on Thursday to update the public on the anticipated trajectory of electricity prices amid the escalating situation in the Persian Gulf.
Chairman Giorgos Petrou said that in May, assuming Brent crude oil is priced at $102 a barrel, the cost of electricity in Cyprus would increase by about 5%.
Petrou said that by August, if Brent crude trades at $110 to $115 a barrel, electricity bills could jump by up to 20% compared with current levels.
He said the market remains highly volatile due to disruptions in fuel supply.
Fuel procurement and reserves
Petrou said the state-run power utility continues to buy fuel “normally” to ensure sufficient reserves, despite the uncertainty.
He said the EAC has adopted a policy of not suspending fuel imports even at times of high prices.
The organisation took delivery of a fuel shipment last week and expects a new shipment in early April.
Petrou said the EAC’s reserves can last for approximately two months.
Import sources
Petrou said the EAC currently imports refined fuel chiefly from European countries, including Spain and Italy, unlike in the past when it purchased some oil from the Persian Gulf.
How would a potential increase in electricity bills affect your household budget by August?
