Energy Poverty in Hungary: Statistics, Policy, and Human Stories

Energy Poverty Definition in Hungary

cost of (optimum) energy consumption

income

income

cost of energy

energy efficiency

> ideal/bearable/acceptable level

Energy Poverty Definition in Hungary

Energiaklub (Fülöp, Fellegi, 2011) – proposal:

1) Household lives below poverty line2) Hypothetical optimum energy consumption

would cause household to spend 34% of total income or more on energy

3) Energy grade of home is F or worse

According to survey, 31% of households above poverty line spend 20% of their income or more on energy (20% = double of UK threshold)

34% = double of median spending (definition of UK threshold). Yet UK value is less than one third of this, and 30% spending on housing is in itself a poverty hazard!

About 50% of housing stock has an energy grade that is better than F, and actually more than 55% of prefab housing estates do; arguably, if no. 2) applies, then energy grade should be irrelevant.

Statistics – according to proposed definition

Energiaklub (Fülöp, Fellegi, 2011) – proposal:

1) Household lives below poverty line2) Hypothetical optimum energy consumption

would cause household to spend 34% of total income or more on energy

3) Energy grade of home is F or worse

14.6%

50%

energy spending as % of total income =/>

energy spending as % of households in category

10% cca. 80%

20% cca. 35%

35% cca. 9%

300-380 thousand households(8-10%)

Statistics – used in Habitat Hungary’s Annual Report on Poverty Housing

• Instances of inability to heat home properly (2011): 10.7% of population (33% of population below poverty line)

• Instances of inability to heat home properly (2013): 14.5% of population (60% of population below poverty line)

• Average spending on housing as % of income (2013): 25.6%; spending in bottom quintile: 31.7%

• % of households in bottom quintile whose spending on housing exceeds 40% (2013): 34.2%

• % of households with utility arrears (2013): 23%, bottom quintile: 55.6%

• 70% of Hungary’s housing stock lacks proper thermal insulation

For more information: http://www.habitat.hu/en/tudaskozpont/

Statistics – poverty housing among children

Policy – energy efficiency

• Energy grade of apartments has to be assessed in case of sale

• Zöld Beruházás Rendszer, Panel Program

• Új Széchenyi Terv (2011) - Otthonteremtési program, Zöldgazdaságfejlesztési program

2011: no calls in Panel Program, HUF 1.6 billion (€ 5.3 million) in Otthonteremtési program, fund expired within two days

2013: HUF 500 billion (€ 1.66 billion) program announced for prefab multiapartment buildings as part of EU 14/20 planning programme – goal: entire stock to be properly insulated; fund has not been launched yet to date

2015: HUF 10 billion (€ 33.3 million) program announced for mulit-apartment buildings

Biggest wasters in Hungary = family houses; no or almost no sources available for upgrading this stock.

Policy – cost of energy: Rezsicsökkentés/Utility cost cuts

Service January 1st 2013

April 29th 2013

June 3rd 2013

November 1st 2013

Electricity 10% - - +11.1%

Natural Gass 10% - - +11.1%

District Heating

10% - - +11.1%

Water - 10% - -

Waste removal

- 10% - -

Chimney sweepers

- - 10% -

Emptying septic tanks

- - 10% -

Bottled natural gas

- - 10% -

Policy – cost of energy

Social firewood program: cca. HUF 3 billion (€ 10 million) 2-5 m3 of firewood/household (cca. 50% of actual need); sum sufficient to serve 30-50% of those in need

Policy – income

Developments with a negative impact on low-income households:

• Changes to system of personal income tax in 2011

• Abolition of subsidisation of natural gas end-user prices (- HUF 30 billion or € 100 million)

• Changes of system of social transfers (period of unemployment benefit reduced, public work replaced a number of benefits)

• Abolition of central housing cost subsidy (impact on households per month: HUF 4 000 or € 13)

Human stories

cost of (optimum) energy consumption

income > ideal/bearable/acceptable level

indebtedness cold and dark homes

use of alternative fuels and damage to health, environment, and buildings

theft and criminalisation

Habitat Programs

• Energy efficiency services in own portfolio:

• Insulation of doors and windows• Insulation of entire homes• Energy efficiency trainings• Energy efficiency consultancy with Energiaklub (Csekkcsökkentő)

• Target groups in our work:

• Working poor• Roma in extreme poverty• Homeless persons

Thank you for your attention!

András SzekérNational DirectorHabitat for Humanity Hungaryandras.szeker@habitat.huwww.habitat.hu