Indeks energy poverty in Serbia is 14,4 percent, according to the research "European energy gap: Research of factors and dynamics". energetic This puts Serbia on the list of countries in Europe with a high index of energy poverty, despite the fact that, according to research, the price of electricity here is lower than in European countries, writes Dunja Marić for the New Economy.
A round table was held at the Faculty of Economics in Belgrade where the issues of energy poverty and just energy transition were discussed.
Professor at the Faculty of Economics Jelena Žarković presented the key points from the research "Energy poverty in Europe: Comparison of countries, insight into the duration of poverty and implications for policy". As stated in the report, first of all, since the beginning of the war in Ukraine in 2022, the number of European citizens who could not afford adequate heating increased from 6,9 percent in 2021 to 6,3 percent - that is, 40 million people.
One of the key points presented by the research is the Energy Poverty Index (EPI). This index measures energy poverty based on three key aspects. These are the inability to heat the home, difficulty paying bills and poor living conditions, such as a leaking roof or dampness in the house.
In Europe, in the period from 2017 to 2020, this index ranged from two to 21 percent. The highest index is in Bulgaria, Lithuania, Portugal and Greece - from 17 to 21 percent. The lowest, on the other hand, is in Norway, Finland and Switzerland - from two to three percent. And how is Serbia doing?
Serbia belongs to the countries with a high index of energy poverty - 14,4 percent.
When it comes to long-term poverty, the index ranges from 6,8 percent in Norway to 31,2 in Lithuania. In our country, this index is 20,2 percent.
Who is most at risk of energy poverty?
Regarding the risk of energy poverty, households with more people with low or secondary education are more likely to be energy poor, even when all other household characteristics are taken into account. The effect varies by country – from 3 percent in France to 22 percent in Bulgaria. In countries with a low EPI index, education is generally not a significant factor, probably because there are few households with a large number of low-educated members.
Of course, the influencing factors are employment, but also whether citizens live as tenants.
As for solutions, short-term measures such as energy subsidies can provide temporary relief, while the promotion of energy-efficient housing is needed to lift households permanently out of energy poverty. Then, the research established that poor housing conditions represent the main component of energy poverty in most European countries. This result suggests that one of the priorities for policy makers, in order to reduce energy poverty, should be to focus on the quality of housing conditions through increasing the energy efficiency of buildings and appliances. Energy efficiency measures, such as improving wall insulation, are important tools for reducing energy bills.
This is particularly important for vulnerable households, given that the share of income spent on energy is significantly higher among poor individuals compared to those with high incomes.
As the vulnerable often rent their dwellings, this requires adequate resolution of landlord-tenant relations.
The consequences of the pandemic are still being felt
Jane Cohen from the International Energy Agency looked at how much poorer and richer households spend on energy. Specifically, in the period from 2019 to 2023, it was found that poorer households in more developed economies spend about a quarter of their income on energy, even though they use half as much energy as households with the highest incomes.
Cohen pointed out that the covid pandemic also affected energy costs. Specifically, compared to pre-pandemic 2019, household energy costs in 2024 were 20 percent higher in the United States and Canada, 40 percent higher in Brazil, France, Germany, and the United Kingdom, and more than double in South Africa.
Of course, it should be borne in mind that different countries measure energy poverty in different ways. For example, some countries consider households that spend more than 10 percent of their income on energy to be energy poor.
How much support is there for the vulnerable?
Juan Ramon de Laiglesia and Gorazd Rezonja from the Organization for Economic Co-operation and Development (OECD) spoke, among other things, about support for households in Europe. Indirect support in the period from 2018 to 2023 amounted to around 3,18 billion euros. This support was reflected in price regulation. On the other hand, direct financial support was much smaller in the same period, amounting to 960 million euros. Of that, direct support for vulnerable groups amounted to 40 million.
Režonja spoke about electricity prices in Europe. The research in which he participated showed that the countries of the Western Balkans have much lower prices compared to the European Union. This also applies to the price of electricity for households, but also to the price paid by the economy.
The survey also showed that 18,9 percent of citizens in Serbia are energy poor or at risk of poverty. On the other hand, 2,9 percent of citizens are not energy poor.
These two groups of citizens are actually at risk of poverty as such, not necessarily related to energy.
A future without fossil fuels
Ilija Batas Bjelic from the Institute of Technical Sciences of the Serbian Academy of Sciences and Arts spoke about the energy transition in Serbia.
Speaking about the future of energy, Batas Bjelic emphasized the policy of independence from fossil fuels, and growth aligned with the EU. He also emphasized the replacement of the demand for fossil fuels with renewable energy sources.
In the future, the reduction of energy demand through energy efficiency, as well as the reduction of unnecessary activities, will be significant.
It is interesting that representatives of the Ministry of Mining and Energy and the Energy Agency were invited to the Round Table, but they did not respond.
Source: New Economy
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