Addressing energy poverty in the Energy Community: from data to action

For many in the Energy Community Contracting Parties, keeping homes warm in winter and cool in summer is a significant concern, with many households facing this challenge even before the energy crisis. Energy poverty, an issue long present in the region, has been exacerbated by rising inflation and energy prices, highlighting how a lack of access to affordable and reliable energy impacts not only household budgets but also health and well-being. For countless families, energy poverty is not just about high bills or cold winters – it’s about choosing between essentials, like food and heat.

The European Union adopted a Union-wide definition of energy poverty in the Energy Efficiency Directive only last year. In the region, the definition of vulnerable customers have already been included in national laws, and short-term measures – such as financial support for energy bills and safeguards against disconnection – have been implemented.

However, despite the fact that they provide immediate relief, as a strategy, they’re incomplete. Beyond quick fixes, we need lasting solutions that address the roots of energy poverty.

To effectively reduce energy poverty, each Contracting Party must establish a clear definition and a solid baseline. A shared understanding of energy poverty is essential for setting meaningful targets and implementing effective measures.

Having worked on energy poverty in our region for some years now, I became the coordinator of the Centre for Alleviating Energy Poverty in 2022. Our latest report, Addressing Energy Poverty in the Energy Community Contracting Parties, developed in collaboration with the Energy Poverty Coordination Group, highlights the urgent need for both immediate relief and long-term, cohesive solutions that go beyond the current patchwork of policies. With a focus on both immediate support and long-term strategies, this report serves as a roadmap for our Contracting Parties (CPs) to tackle energy poverty and enable a more inclusive energy transition.

Through nine fact sheets, the publication offers a snapshot of energy poverty in the region, bringing to light a harsh reality: a substantial number of households across CPs are unable to afford adequate heating.

Our report offers a comprehensive analysis and identifies key issues that require urgent attention, such as:

1. Persisting Energy Poverty: Energy poverty remains widespread, with many households unable to afford adequate energy services. While short-term relief helps, the impact is temporary. Sustainable solutions, like building retrofits, are needed to improve living conditions.
2. Lack of Long-Term Measures: Current efforts focus on short-term aid, which addresses immediate needs but fails to deliver lasting change. For real progress, energy-poor households must gain access to energy efficiency and renewable energy opportunities.
3. Insufficient Data and Policy Frameworks: Many CPs still lack clear definitions, metrics, and targets in their National Energy and Climate Plans (NECPs). Without these, effective, targeted policies remain out of reach.

Encouragingly, many Contracting Parties are making strides toward energy poverty reduction, with countries like North Macedonia and Serbia setting valuable examples. North Macedonia has introduced programmes covering 70 per cent of the costs for low-income households to install energy-efficient and renewable energy systems. Serbia has also scaled up its clean energy initiatives, offering substantial subsidies for efficient heating solutions and rooftop solar installations for low-income families.

Moldova supports similar efforts by providing eco-vouchers that enable families to replace outdated, inefficient appliances. Albania, Kosovo* and Ukraine started applying similar measures. In addition, Moldova and Serbia have included definitions of energy poverty in their energy efficiency laws, and Georgia has integrated it into its National Energy and Climate Plan (NECP).

While these examples signal progress, it will take more than gestures and good intentions to make it work across the region. We need to see strong engagement and commitment across all Contracting Parties and on a much wider and fundamental scale. For instance, indicators on overdue payments of utility bills, difficulty heating homes adequately, and housing quality issues like leaks and dampness are already collected in several countries. Expanding these efforts is crucial.

Upgrading existing buildings to improve their energy efficiency and comfort is a challenging but powerful long-term solution, representing a shift from merely managing energy poverty to truly alleviating it. The benefits – reduced bills, improved living conditions and lower dependency on financial aid – make it a worthy pursuit.

Municipalities, which are on the front lines, have a vital role here. They know the communities most in need and can drive targeted, local programmes to improve housing stock while also supporting local businesses and job creation.

In 2023, the European Commission allocated a 1 billion euro Energy Support Package to bolster resilience in our region, particularly for the energy poor. This is a major boost, but it’s not the end of the journey. Our hope is that our report can inspire even more targeted support and collaboration among CPS.

Energy poverty is a reality we can no longer afford to ignore, and governments have the responsibility to ensure that the energy transition is fair, inclusive, and beneficial for all. With a shared understanding of the issue and well-defined policies, it’s time to translate data into action and follow a clear path forward to enhance citizens’ health and quality of life.

At the Energy Community Secretariat, we recognise that addressing energy poverty requires careful attention to data and policy. By aligning our efforts with EU standards, we can support meaningful change, and come closer to a future where affordable energy and comfort are accessible to everyone.

*This designation is without prejudice to positions on status and is in line with UNSCR 1244 and the ICJ opinion on the Kosovo Declaration of Independence.

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