Newsroom

REPORT: Energy poverty

The role of energy efficiency in the fight against energy poverty

In response to ever-increasing energy prices caused by the sluggish transformation of the energy sector and the geopolitical situation, reducing costs for households may require subsidising the purchase of energy carriers by local authorities or introducing temporary tax relief. […] This is why systemic measures geared towards eliminating the causes of energy poverty, i.e. aiming to improve the technical standard of buildings and their energy efficiency level, are so important.

In response to ever-increasing energy prices caused by the sluggish transformation of the energy
sector and the geopolitical situation, reducing costs for households may require subsidising the
purchase of energy carriers by local authorities or introducing temporary tax relief. These measures
would be short-term in nature, however. Although they would reduce the severity of price shocks in
times of market turbulence, the funds allocated for them would not have a significant effect in energy
terms. Furthermore, the problem of ensuring cheap energy would return with full force once they were
withdrawn, bringing the problem of energy poverty back to the fore. This is why systemic measures
geared towards eliminating the causes of energy poverty, i.e. aiming to improve the technical standard
of buildings and their energy efficiency level, are so important.