Cost of Electricity Unchanged Until 2012

 

The Government announced yesterday that the TUR electricity tariff, as used by the majority of residential consumers, will not be increased between now and the end of the year.

To offset the rising cost of energy as seen at yesterday's auction, the Executive will instead reduce the 'access fees'.

Electricity bills are composed of two elements, the cost of the energy itself, which is controlled by the cost of raw material at auctions in the electricity market, and by the 'access fees', which is basically for use of the infrastructure and network owned and operated by the Electricity companies.

the cost of energy increased by over 10%, which under normal circumstances would result in an increase in the cost of electricity to the consumer of between 5.9% and 6.1%.

However, in a moved to keep this increase from being passed to the consumer, the Government has arranged to reduce the access fees, to counter the overall increased cost.

Electricity prices will be reviewed in Q1 of 2012.