Energy poverty in Europe and support for families following the COVID-19 pandemic

Subject: Energy poverty in Europe and support for families following the COVID-19 pandemic

The month-long lockdown triggered by the pandemic and the ongoing spread of telework have led to an increase in household energy consumption. In fact, the residential sector accounts for 27 % of final energy consumption. The Member States have introduced a range of exceptional measures, yet when these end, many families will still be struggling to make ends meet.

Official EU estimates suggest that 10 % of the population lives in energy poverty. Those affected are more vulnerable to respiratory diseases and mental health issues, thus widening inequalities and exacerbating health risks.

Currently, only 1 % of buildings in the EU are renovated each year. Aside from more affordable energy costs, we also need major investment and incentives in the housing sector.

In order to safeguard the right to energy and in view of the Renovation Wave initiative, does the Commission intend:

to establish a stable financial and legislative framework for energy investments in all Member States?

to facilitate access to credit for private individuals by means of advances and guarantees to finance projects designed to improve homes’ energy efficiency and cut residential CO 2 emissions?

to guarantee flexibility in the use of funds so that Member States are able to relieve struggling families of some of the burden of energy costs?

Answer given by Ms Simson on behalf of the European Commission

(10 November 2020)

The Commission’s recent Renovation Wave Strategy (1) analyses the current situation and future scenarios in order to address energy efficiency renovations and affordability. It encompasses legislative and financial measures at EU, national, regional and local level to improve the current framework.

The renovation wave also looks into additional support measures to further reinforce the building sector, including training and skills, smart technologies, development of technical assistance and easing administrative processes. A range of EU assistance tools is available already for energy efficiency actions. The Technical Support Instrument can also help in designing the right to support renovations.

Member States can use the significant resources proposed under cohesion policy funds and the Recovery and Resilience Facility to invest in energy efficiency and to support investment-enabling reforms. Funding could be used to provide grant support, develop financial instruments or a combination of both. These schemes would support, amongst others, low-income households and consumers affected by energy poverty.

The Commission has at the same time adopted Energy Poverty Recommendation and Guidance (2). Member States, local authorities and social housing associations in particular are encouraged to use them to better identify households at risk, improve targeting of measures, use best practices and better understand the variety of EU support available, such as the EU Building Stock Observatory and the EU Energy Poverty Observatory.

⋅1∙ COM(2020) 662 final.

⋅2∙ C(2020) 9600 final.