**Fidias Panayiotou Faces Backlash Over Electricity Pricing Claims**
In a recent public discourse on electricity pricing in Cyprus, Fidias Panayiotou, the leader of the Direct Democracy party, has come under scrutiny from owners of commercial solar parks. Panayiotou claimed that businesses could reduce their prices by up to 20 percent while still maintaining profitability, a statement that has sparked significant debate among energy market stakeholders.
Earlier this week, Panayiotou urged President Nikos Christodoulides to take action regarding the high electricity prices affecting consumers and businesses alike. He asserted that solar parks incur costs ranging from 5 to 8 cents per kilowatt-hour to generate electricity, while selling it for between 25 to 30 cents. Based on this substantial markup, he argued that there is potential for a price reduction of up to 20 percent on electricity bills.
However, the Energy Market Association (EMA) quickly refuted Panayiotou's claims, stating that they do not reflect the realities of the energy market. The EMA emphasized that Panayiotou's assertions overlook critical factors such as the operating costs of solar parks, overhead expenses, the absence of energy storage solutions, and the frequent curtailments faced by renewable energy sources. These elements contribute to the overall pricing structure and profitability of solar energy production.
The EMA highlighted that solar energy from commercial parks accounts for only 6.4 percent of the total energy traded since the launch of Cyprus's competitive electricity market in October 2025. They also pointed out that the average price of solar energy sold on the day-ahead market is significantly lower than the figures cited by Panayiotou, standing at 14.48 cents per kilowatt-hour.
An electricity systems expert supported the EMA's position, noting that simulations indicated that implementing a price cap of 11 cents would only lead to a marginal reduction of approximately 1.8 percent in electricity prices, rather than the 20 percent proposed by Panayiotou. The expert's analysis further reinforced the notion that the energy market operates under complex dynamics that cannot be simplified into straightforward solutions.
In response to Panayiotou's comments, the EMA stated, "Mr. Panayiotou cannot question the above data with generalities and aphorisms. Numbers are answered with numbers, and data with data." The association has extended an invitation to Panayiotou for a discussion to clarify the intricacies of the energy market.
Adding to the conversation, the Federation of Employers and Industrialists (OEV) issued a statement that appeared to indirectly critique Panayiotou's oversimplified approach to addressing high electricity prices. The OEV asserted that no single intervention could effectively resolve the issue, emphasizing that the investments required for necessary infrastructure would need to be amortized, potentially leading to short-term increases in electricity costs.
The federation cautioned against misleading claims that promise quick fixes to complex problems, stating, "Oversimplifying a complex matter with well-sounding but unsubstantiated claims... is not just misleading – it is also dangerous."
The competitive electricity market in Cyprus, which officially launched in October 2025, allows for multiple private participants, including conventional producers, independent suppliers, aggregators, and green energy producers. This market structure is designed to facilitate trading in 30-minute intervals, promoting competition and potentially leading to more favorable pricing for consumers.
As the debate continues, it remains clear that the conversation around electricity pricing in Cyprus is multifaceted, involving various stakeholders and requiring careful consideration of the underlying economic factors. The dialogue initiated by Panayiotou has opened the floor for further examination of the energy market, but it also underscores the importance of informed discourse based on accurate data and realistic expectations.