Government to reduce VAT on electricity by 10% for households

The government has revealed a 10% reduction in VAT on electricity for households, lowering it from 19% to 9%. This initiative is part of broader efforts to make energy more affordable for citizens, alongside ongoing tax reform proposals.

The government also highlighted positive developments in utilizing natural gas from Cyprus' Exclusive Economic Zone (EEZ). Recently, two agreements were signed with Egypt, paving the way for the commercial use of natural gas. Drilling activities are currently underway, with results expected soon.

Several key measures in the energy sector were also shared, focusing on sustainability and cost reduction:

• Grant programs to support the installation of storage systems alongside renewable energy projects
• Financial incentives to enhance energy efficiency for large businesses
• "Save and Upgrade" programs to assist homes, small and medium enterprises (SMEs), and non-profits in improving energy efficiency
• The establishment of a single service dedicated to managing renewable energy projects

Additionally, efforts to modernize the energy infrastructure were highlighted, including the start of smart meter installations, which will improve the electrical grid and boost energy efficiency. A new regulatory framework is being introduced for energy communities, along with the pilot launch of the Green Community project in Kato Pyrgos Tillyria.