Economic Board call for the reduction of electricity tariffs in TRNC as fuel prices drops

The TRNC Presidential Economic Advisory Board has called on the TRNC government to cut down the price of electricity tariffs in the country to reflect global fuel cost and alleviate the economic hardship caused by the coronavirus pandemic. 

On Friday, the Presidential Economic Advisory Board released a study in which it found that there has been a 48-55 percent reduction in electricity generation costs due to the drop in fuel prices. 

The board proposed a drop in electricity tariffs to the government to reflect the current global oil price.

In a written statement issued by the Presidency, it was stated that fuel oil prices, which make between 70 to 80 percent of the production cost on average, have decreased by 69 percent in TL over the past year, and therefore the cost has decreased.

According to the statement, the government was reminded that according to the change in fuel prices, electricity prices should be adjusted every three months and that this regulation has not been enforced since April 2019.

The Economic Advisory Board’s study indicated that the price of fuel oil, which is the biggest contributor to the cost of electricity production in the TRNC, has fallen by 73 percent in the world markets in the last 12 months, the European Brent spot price, which was 401.20 TL per barrel at the beginning of April 2019, decreased to 125.43 TL by the beginning of April 2020.

It was also stated in the study that the price of oil has decreased by 69 percent in TL over the past year.