Cyprus energy suppliers back competitive market to lower electricity costs

The Cyprus Association of Electricity Suppliers’ Representatives (Sepie) on Thursday said that a competitive electricity market remains the most efficient model for achieving lower costs for consumers and a sustainable energy transition.

In its announcement, which followed recent public debate over potential changes to market design, the association reaffirmed that the competitive electricity market model applied across the European Union constitutes “the most efficient, transparent and effective model of market operation”.

It added that this framework ensures the optimal use of available resources and supports the formation of affordable electricity prices.

According to Sepie, this position is supported by two leading European energy organisations, Europex and Eurelectric.

Europex is a Brussels-based non-profit representing 37 energy market operators that advocates for transparent and integrated wholesale market design to support EU climate goals.

Eurelectric, meanwhile, serves as the primary sector association representing the interests of the broader European electricity industry.

In an official statement issued on March 12, 2026, Europex stressed that marginal pricing, which underpins the competitive market, is “the most efficient foundation for electricity markets”.

It explained that this mechanism minimises overall system costs, enhances transparency, and facilitates the integration of renewable energy sources.

Europex also underlined, according to Sepie, that European institutions have already concluded that the current market design is functioning effectively and should be maintained.

It warned that frequent changes risk undermining long-term investment planning and increasing uncertainty in the market.

At the same time, Sepie said that in a letter dated February 26, 2026, Eurelectric made clear that marginal pricing remains the most effective and robust mechanism for efficient resource allocation, price transparency, and adequate investment incentives.

According to the announcement, Eurelectric further stressed that at a time when unprecedented levels of investment are required for the energy transition, regulatory stability and predictability are essential.

It also highlighted that expanding clean energy production represents the main structural solution to reducing costs and limiting dependence on fossil fuels.

Sepie warned that questioning the fundamental principles of the electricity market could increase uncertainty, delay investments, and ultimately raise costs for consumers.

What is more, the association said that discussions on electricity market design should be based on evidence-based European positions and real data.

It added that maintaining and strengthening the competitive market is a necessary condition for lower costs, investment attraction, energy security, and a successful green transition.