Industry Chamber Calls For Urgent Reform On Electricity Costs

In a statement, the Turkish Cypriot Chamber of Industry (KTSO) emphasized that electricity costs are one of the most critical factors affecting the competitiveness of the production sector, adding that immediate regulatory action is needed.

The chamber noted that industrial businesses in the country are facing a serious competitive disadvantage due to high energy expenses. It further warned that rising fuel prices, driven by ongoing regional conflicts and global developments, will increase production costs and place an additional burden on already struggling industrialists.

Stressing the need to protect domestic production, the statement said energy input costs should be brought in line with international levels and that competitive conditions must be aligned with global standards. It also underlined that local producers should not be left at a disadvantage compared to imported goods due to high energy costs, calling for updated incentive mechanisms.

Particular attention was drawn to the electricity incentive scheme, which the chamber described as no longer effective under current economic conditions. Introduced in 2011, the 10 kuruş electricity support—originally providing approximately 33% relief—was said to have lost its impact over time.

The chamber reiterated that updating electricity incentives is now unavoidable and called for stronger support mechanisms and potential exemptions to be implemented without delay. It concluded that such measures are essential to ensure the survival of industrial producers, sustain production, and strengthen the overall economy.