In accordance with European and National legislation, water pricing policies are part of the basic measures that each Member-State must implement for the rational and effective use of water. In particular, in areas such as Cyprus where water shortage is a permanent phenomenon, such policies must be an incentive to save water.

In accordance with European Framework Directive on Water (2000/60.EC) transposed in National legislation by way of the Protection and Management of Water Law 13(I)/2004, the various uses of water (divided at least in households, agriculture and industry) must pay such fees that result in an adequate recovery of the cost of water, including the financing cost of water supply services and the impact on the environment as a result of its use and the impact of exhaustion of the natural resource. Water pricing policies must also consider the local conditions (socioeconomical, geographical, climatic) as well as the outcomes caused from the recovery of the cost.

For the implementation of the above, the House of Representatives enacted in February 2014, the “Pricing and Mechanisms for the Recovery of the Cost of Water Service Regulations (PI 28/2014)". These Regulations regulate the principles for a uniform pricing of water in Cyprus, both for water supply (drinking water for households and other uses) and irrigation (irrigation water from Government Water Works (GWW) and the recycled water distribution networks and also from private boreholes and other sources). Public Instrument 28/2014 regulates the obligations of all water providers, in other words the Water Development Department, the local water supply authorities (water supply boards, municipalities, communities, community complexes, government water supply works) and irrigation organisations (Irrigation divisions, irrigation associations).

The basic principles concerning local water supply authorities are included in the “Brochure on the Pricing of Water in Cyprus” that accompanies this note.

To implement the above pricing policies, on 21 December 2016 the Council of Ministers approved new fees for the supply of water from Government Water Works and Government recycled water distribution networks as well as fees for the abstraction of water from private boreholes and surface sources. These fees are prescribed in the Water Fees Regulations (PI 48/2017) published in the official gazette of the Republic on 10 February 2017.