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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/
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 [email protected]