Energy Poverty Policy at EU Level – Mission Impossible: the Bulgarian Case

By Teodora Peneva

BULG

ARI

AEU

ROPE

AN U

NION

1996 201120092003

First draft of Heating Allowance developed by the

ME

Energy Roadmap

2050

National Program for EE of multifamily

buildings (NPEEMB)

2015

Social Tariff for

Electricity (to be

launched)

HEATING ALLOWANCE

2012

Energy Law: Vulnerable Consumer Definition

2008

Vulnerable Consumer Definition adjusted

2005

Directive 2009/72/ЕО

Directive 2005/32/ЕU

Directive 2003/54/ЕU2003/55/EU

2017

Social Aid Law: Heating

Allowance

Policies Timeline

NON-FINANCIAL MEASURES

2022

End of Social Tariff for

Electricity

NPEEMBOPRD

2007

Operative Program for Regional

Development buildings (OPRD)

Non-Financial Measures

SOCIAL TARIFF FOR ELECTRICITY

BUILDING RENOVATION POLICIES

LEGEND

ELECTRICITY TARIFFS

HEATING ALLOWANCE

NON-FINANCIAL MEASURES

Policies DetailsHeating Allowance

• For vulnerable consumers

• €35 per month/household

• 500,000 residents covered

• Budget: €56mn/year Buildings Renovation

• National Long-term Program for EE 2005-2015• Operative Program “Regional Development” 2007-2013 – Total budget:

€256,000• National Program for EE of Multifamily Buildings 2015-2017 – Total

budget: €1bn

Social Tariff for Electricity• For vulnerable consumers• €5 per month/household/electric meter• 1,100,000 residents to be covered• Budget: €30mn/year

168

Policies Coverage

Heating Allowance ConsumersSocial Electricity Tariff Consumers

Population

325 BGN (€153)/month

560 BGN (€286)/month

1,100,000500,000

Minimum Living Costs (560 BGN/month)

35Heating Allowance (monthly average/year)Electricity Tariff Coverage (monthly average/year)

10

Below the Poverty Line of a basket of 100 basic goods

Over the Minimum Living Cost

Between the Poverty Line and the Minimum Living Cost

392

Living Cost excl. Housing Cost

Housing Cost

1,545,800

2,300,000

3,500,000

1,400,000

Below the Poverty Line at 65% of the median income

The Effect

EU Bulgaria

Minimum Measurable Threshold

Minimum Heating Standard: 4,000kWh/season/couple/65m2

Minimum Lighting/Appliances Standard: 250kWh/month/household

Minimum Heating Standard

5oC average outside temperature20oC designed inside temperature

45% walls, 55% windows

65m2 living area, 14.92m perimeter

Walls Insulation 5cm

A couple

Heat losses power at designed capacity for outside temperature -15oC: 2,071kWh/season

0100200300400500600700800900

1,000

37.0 29.2 22.8 10.9 0.5 0.0 0.0 0.0 0.0 9.2 23.8 33.2

827.5652.3

510.0

244.8 11.40.0 0.0 0.0 0.0

206.2

532.6

744.0

walls windows

• 4,000kWh/65m2 flat/couple/heating season

Country Specifics

UK

Bulgaria

Poland

Germany

The Netherlands

Denmark

• Average outside temperature

• Heated size (>37.5m2/person)

• Major energy unit• Average price/unit

Croatia

Average toC MHS (kWh)Zagreb 4.79 4,250 Warszawa 2.16 5,700London 9.00 3,500Copenhagen 3.25 4,700Berlin 4.04 4,500Prague 3.44 4,900Amsterdam 5.35 3,800Plovdiv 5.00 4,000

100

380

100

MHS Details• Provided only for

the amount necessary to fill up the remainder to minimum living cost • no poverty line

applied!

Minimum Living Costs

Minimum Heating Standard

Income A Income B Income C460 BGN 260 BGN 360 BGN

280

300

200

Heating Allowance/month

Poverty Line

Minimum Heating Standard

Policies Coverage ScenariosNOW

2,250kWh+1,500kWh1,500kWh

0 kWh

WITH MHS of 4,000kWh

5,395kWh

5,395kWh

Xx kWh

0 kWh 5,395kWh

Heating Allowance Consumers Social Electricity Tariff Consumers

Population

1,100,000500,000

Over the Minimum Living Cost

Between the Poverty Line and the Minimum Living Cost

2,300,000

3,500,000

1,400,000

Below the Poverty Line

MHS Policy Suggestion for Bulgaria

• No support for wood/coal heating• No cash support• MHS Convertible for Energy Efficiency measures (partly) • MHS support holders to receive other social priorities and responsibilities

Thank you