LUSA 09/12/2024

Lusa - Business News - Portugal: Nation had highest percentage of energy poverty in EU in 2023 - report

Brussels, Sept. 11, 2024 (Lusa) - In 2023, Portugal was the European Union (EU) member state with the highest percentage of energy poverty, at 20.8% and on a par with Spain, the European Commission announced on Wednesday, calling for more protection for vulnerable consumers.

The data is contained in the report on the State of the Energy Union, published today by the EU executive in Brussels, which states that the highest percentages of people unable to keep their homes adequately heated were recorded last year in Portugal and Spain, both with 20.8%, followed by Bulgaria (20.7%) and Lithuania (20%).

On the other hand, Luxembourg (2.1%), Finland (2.6%), Slovenia (3.6%) and Austria (3.9%) recorded the lowest percentages in terms of energy poverty, the institution points out, noting that, across all 27 member states, an average of 10.6% of the EU's population is unable to keep their home adequately heated.

Compared to 2022, this percentage has increased by 1.3 percentage points, in a context of energy crisis and inflation.

Stating that the situation of energy poverty varies "between EU countries that promote measures to protect households", the European Commission emphasises that member states "can act to guarantee access to essential services and protect vulnerable consumers from excessive costs by directly tackling energy poverty".

In addition, the EU executive adds, "the new energy market legislation will better protect vulnerable households and those affected by energy poverty against disconnection".

"In the event of a natural gas price crisis, emergency measures at EU level can help protect consumers by intervening in retail price caps," it adds.

One of the initiatives implemented under the new energy market legislation was the creation, as of this year, of a Social Climate Fund, which is expected to mobilise at least €86.7 billion in revenue from the EU Emissions Trading Scheme for the period 2026-2032, including a co-financing of 25% from countries in order to contribute to a socially just transition to climate neutrality.

The fund is expected to finance measures and investments that member states adopt in their social climate plans by June 2025, thus helping to offset the expected increase in energy bills due to the introduction of carbon pricing for heating and transport.

Also according to the report on the state of the Energy Union, in the first half of 2024, half of electricity production in the EU area came from renewable sources.

As far as gas is concerned, as the EU tries to be independent of Russian supplies due to Russia's invasion of Ukraine, the share of Russian gas in EU imports fell from 45% in 2021 to 18% in June 2024.

The EU has also set targets for reducing gas demand, which would allow consumption to fall by 138 billion cubic metres between August 2022 and May 2024.

On 19 August, the EU reached its winter gas storage target of 90%, well ahead of the planned deadline of 1 November.

 

ANE/AYLS // AYLS

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