A recent analysis conducted by the Center for Economy of Regulated Sectors at the University of Economics in Prague has revealed a concerning trend: nearly one in three households in the Czech Republic experiences some form of energy poverty. This includes households for whom energy payments constitute a disproportionately high portion of their income, those struggling with unpaid obligations to energy companies, and those unable to afford adequate home heating. The study indicates that the number of people affected by energy poverty has risen by up to five percentage points over the past year and a half, affecting approximately one-fifth of the population.

The significant increase in energy poverty has raised concerns among experts, prompting calls for the government to implement long-term and sustainable solutions to address the issue effectively. Lucie Burešová, the director of the center, proposed the establishment of a coordinating center that would foster collaboration among various ministries to comprehensively tackle energy poverty. She emphasized the need for data integration to develop effective strategies, as fragmented data poses a challenge in addressing the problem.

In the Czech Republic, around 1.35 million households out of nearly 4.5 million are affected by energy poverty. Burešová suggested short-term solutions such as a social tariff or an energy allowance that could supplement the existing housing allowance. However, she cautioned against a blanket approach and advocated for targeted and equitable measures to ensure fairness.

The findings of the analysis align with previous studies conducted by other organizations, shedding light on the vulnerability of specific groups, including families with children, single parents, and elderly individuals. Energy poverty tends to disproportionately affect those living in energy-intensive buildings, such as residents of family houses and individuals in rental apartments.

To address the problem, the analysis recommended direct payment transfers to energy providers for the energy allowance to prevent the accumulation of arrears. Additionally, extending subsidies for renovation to apartment owners was proposed as a way to support low-income homeowners and improve energy efficiency. The Ministry of the Environment has expressed its intention to provide incentives for housing complexes with a higher concentration of low-income households, but further details on implementation are awaited.

The rising energy poverty in the Czech Republic highlights the urgent need for sustainable and targeted interventions. It is crucial for the government, policymakers, and relevant stakeholders to collaborate and develop comprehensive strategies that provide support, alleviate financial burdens, and ensure access to affordable and reliable energy for all households.

Article by Prague Forum