North’s high energy costs do not reflect global oil prices

Representatives of the tourism and agriculture sectors in North Cyprus have described a recent announcement by the region’s energy authority to lower the cost of electricity by 33kurus/kWh, as “too little, too late” and “comical”. Chairman of Kib-Tek Ismet Akim recently announced that electricity prices would be reduced by 0.33 TL per kWh on February 1, 2016.

Although there have been record drops in in world oil prices, energy users in the TRNC continue to pay the highest prices in the world.

Turkish Cypriot Travel Agents Union (KITSAB) chairman, Orhan Tolun pointed out that the biggest consumers of electricity were hotels and restaurants and they were overburdened by the cost of electricity. Tolun pointed out that the significant fall in global oil prices over the past two years, had not been reflected in the North. Electricity prices had been reduced in South Cyprus but had been increased in the North.

The head of the Turkish Cypriot Citrus Fruit Exporters Union Gokhan Sarac was also critical of the price hikes in the North despite global oil prices and noted that the 0.33TL reduction was “comical” and overdue. Sarac said whilst the Greek Cypriot side was thinking about connecting electricity with Israel via a cable, the Turkish Cypriot side was consuming the most expensive electricity in the world.

Cyprus Weekly

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