The mechanism for energy poverty before the liberalisation of wholesale prices for households is actually introduced. It is important in this year, while the market is liberalized, to develop an information system.
This was recommended by Teodora Peneva, an energy expert from the BAS and author of the 2023 report to the BNR.
According to her, a project or program is needed to test the household identification process.
„Our recommendation in the report is first - priority implementation of the mechanism before the implementation of liberalization and work with the lowest income households”, Peneva said.
It is a problem for her that the mechanism is unclear and no work is being done on it, but a decision of the Prime Minister is required, and so far this has not happened.
„A nationally responsible institution must be determined, which will create the information system for the energy poor. Changes should be made in the Energy Act, as well as in the Ordinance on Energy Poverty, for the creation of an information system and its application, added the BAS expert.
And reported that according to the official methodology adopted in 2023:
"Our estimate is for 32% energy poor in 2022, now we are talking about 1/3 of households."
Experts suggest that the measures be on a differentiated scale and cover households up to average income.
"Without an information system, we don't know exactly how many and what kind of households there are, how many members they have, where they are located. This map is also needed on a regional scale, serious preparation is needed in order to create measures to protect citizens", Teodora Peneva explained.
She reported that in our country the costs of a household for energy are the highest compared to those in Europe, although electricity is the cheapest in our country:
"The share of lighting and heating costs is on average 15% of the disposable income of a household. In the EU, it is close to 8%, even the highest income households in our country, and they are 20 – 30%, they themselves have 10% energy consumption. This is because of the income gap. We must read the income and expenditure indicators."
Peneva also warned that there are risks in the free market, prices are dynamic and unpredictable.
„There is a risk, how short a period of time it will be, and when it will occur, no one can say, but it exists and we saw it in 2022 in the EU, precisely because of the risk of the free energy market&rdquo ;, Peneva said.
And he explained that renewable sources for households cannot fully supplement, but partially absorb, the energy they need.
„Extending the grid to use such energy also costs money. The components are charged in energy bills and it is up to the government to make investments in the grid. All this affects the final cost“, said the BAS expert.