CYPRUS MIRROR
reading time: 2 min.

KTSO: Industrial Electricity Incentives Have Lost Their Effectiveness

KTSO: Industrial Electricity Incentives Have Lost Their Effectiveness

The Cyprus Turkish Chamber of Industry (KTSO) has stated that the electricity incentives introduced 13 years ago to improve industrial production conditions and reduce energy costs have lost their effectiveness and are nearly nonexistent.

Publish Date: 08/11/24 14:35
reading time: 2 min.
KTSO: Industrial Electricity Incentives Have Lost Their Effectiveness
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In a written statement, the KTSO explained that the incentives applied between 2011 and 2016 helped ease the financial burden on industrialists and lowered costs. However, the lack of updates to these incentives since 2018 has led to significant challenges, culminating in the near complete removal of the incentives in 2024.

The statement pointed out that the incentive rate, which started at an effective 28.6% in 2011, has dropped to just 1.1% in 2024, stating:

"Industrialists are now forced to cover energy costs on their own, causing production costs to rise rapidly and weakening our competitive edge. This poses a serious threat to sustainable industrial production."

A Call for Action

This situation highlights the need for more effective energy policies, as rising energy costs and the elimination of incentives threaten the competitiveness of the industrial sector. The KTSO emphasized that finding innovative energy solutions is now critical to maintaining a sustainable production environment.

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