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FUEL POVERTY IN HUNGARY. Measurements, experiences and policies. Mapping the European energy poverty research landscape: towards common action and co-operation. Brussels, Sept 30 th , 2010. Prof.  DIANA ÜRGE-VORSATZ SERGIO TIRADO HERRERO Center for Climate Change and  Sustainable Energy Policy (3CSEP). Central European University (CEU).
Framing the concept ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The concept of fuel/energy poverty ,[object Object],Reference Definition Boardman (1991, p. 201, in Morrison and Shortt, 2008) “ Inability to obtain adequate energy services for 10% of a household income” Healy and Clinch (2002, p. 331), after Lewis (1982) “ Inability to heat the home adequately because of low household income and energy inefficient housing” Buzar (2007, p.  225) “ A household is considered energy-poor if the amount of warmth in its home does not allow for participating in the ‘lifestyles, customs and activities which define membership of society’” European fuel Poverty and Energy Efficiency (EPEE) project (2009, p.4) “ A household’s difficulty, sometimes even inability, to adequately heat its dwelling, at a fair price”
Contributing factors ,[object Object],Energy (in)efficiency Energy prices Household income
Energy prices vs. household incomes Consumer Price Index  (CPI), price index of goods and services considered in CPI calculations, and rate of increase of wages and pensions in Hungary (2000-2009) Source:  Tirado Herrero and Ürge-Vorsatz, forthcoming
The energy performance of buildings Correlation coefficient –  r  :  0.68 Inability to afford adequate heating vs. low quality housing* (self -reported) * Leaking roof, damp walls, floors or foundation, or rot in window frames of floor RESEARCH IN PROGRESS  do not cite or quote
Measuring fuel poverty in Hungary Primary indicators EXPENDITURE APPROACH:  % of energy expenses vs. net income 9.7%  of  households net income  spent on  energy , as an average for the period 2000-2007.  Source : KSH
Measuring fuel poverty in Hungary Primary indicators In 2007, the average household of the  8 lower income deciles  spent  10% or more  of its net income on energy EXPENDITURE APPROACH:  % of energy expenses vs. net income Source : KSH
Measuring fuel poverty in Hungary Primary indicators ,[object Object],[object Object],12.4%  of the population declare to be  unable to keep their homes adequately warm  (2005-2009) SELF-REPORTED APPROACH:  inability to afford enough heating Source : EU SILC
Measuring fuel poverty in Hungary Secondary indicators ARREARS  ON UTILITY BILLS (self-reported) FUEL POVERTY-RELATED HOUSING FAULTS* (self-reported) * Leaking roof, damp walls, floors or foundation, or rot in window frames of floor
Measuring fuel poverty in Hungary Secondary indicators Source : KSH USE OF TRADITIONAL FUELS FOR SPACE HEATING
A socio-economic characterisation of fuel-poor households Source : own elaboration Review of  household attributes  related to fuel poverty in Hungary PRIMARY INDICATORS SECONDARY INDICATORS Expenditure-based Self-reported Arrears on utility bills Fuel poverty-related housing faults Use of trad. fuels for space heating Lower income +++ +++ +++ ++ +++ Pensioners / Elders ++ ++ - - - + + One-person household ++ ++ - + = With children - - + = = Without children = + - = = Mono-parental families n.a. ++ ++ + n.a. Large families (3 or more children) = + ++ + ++ Located in peripheral regions  + n.a. n.a. n.a. +
District heating and panel buildings   The thermal trap Low-income  population Prefabricated  panel buildings  in suburban areas Many DH networks are now obsolete and need  modernization  both on the heat supplier and on the consumers’ side Fixed flat rate,  no individual meters Some consumers fail to pay regularly the tariff:  indebtedness DH providers  do not easily allow to switch  to other fuel or company Inability to control indoor temperature thermal discomfort
Deprived rural Roma communities In the outback Poor rural community  in NE Hungary: few  income-earning opportunities (60 EUR per person per month) ,[object Object],[object Object],[object Object],Heating and cooking:  firewood. Only  1-2 rooms are heated in winter. Indoor air pollution Lighting and appliances:  electricity (5 to 10,000 HUF per month). They switch on the fridge only when they buy meat Large traditional single-family houses . High specific energy consumption for heating (above 300 kWh/m2.year ) No access to  commercial credit  or  information on energy efficiency . The issue of informal  money-lenders
Who are the most affected? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategies to deal with energy affordability problems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Policy elements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Advanced residential EE solutions are available… ,[object Object],[object Object],[object Object]
... and they generate additional co-benefits Employment effects of deep and suboptimal renovations in the Hungarian building stock
Some conclusions… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Further contact:  [email_address] THANK YOU! Mum, are bills made of onion ?

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Fuel Poverty In Hungary. Measurement, experiences and policies.

  • 1. FUEL POVERTY IN HUNGARY. Measurements, experiences and policies. Mapping the European energy poverty research landscape: towards common action and co-operation. Brussels, Sept 30 th , 2010. Prof. DIANA ÜRGE-VORSATZ SERGIO TIRADO HERRERO Center for Climate Change and Sustainable Energy Policy (3CSEP). Central European University (CEU).
  • 2.
  • 3.
  • 4.
  • 5. Energy prices vs. household incomes Consumer Price Index (CPI), price index of goods and services considered in CPI calculations, and rate of increase of wages and pensions in Hungary (2000-2009) Source: Tirado Herrero and Ürge-Vorsatz, forthcoming
  • 6. The energy performance of buildings Correlation coefficient – r : 0.68 Inability to afford adequate heating vs. low quality housing* (self -reported) * Leaking roof, damp walls, floors or foundation, or rot in window frames of floor RESEARCH IN PROGRESS do not cite or quote
  • 7. Measuring fuel poverty in Hungary Primary indicators EXPENDITURE APPROACH: % of energy expenses vs. net income 9.7% of households net income spent on energy , as an average for the period 2000-2007. Source : KSH
  • 8. Measuring fuel poverty in Hungary Primary indicators In 2007, the average household of the 8 lower income deciles spent 10% or more of its net income on energy EXPENDITURE APPROACH: % of energy expenses vs. net income Source : KSH
  • 9.
  • 10. Measuring fuel poverty in Hungary Secondary indicators ARREARS ON UTILITY BILLS (self-reported) FUEL POVERTY-RELATED HOUSING FAULTS* (self-reported) * Leaking roof, damp walls, floors or foundation, or rot in window frames of floor
  • 11. Measuring fuel poverty in Hungary Secondary indicators Source : KSH USE OF TRADITIONAL FUELS FOR SPACE HEATING
  • 12. A socio-economic characterisation of fuel-poor households Source : own elaboration Review of household attributes related to fuel poverty in Hungary PRIMARY INDICATORS SECONDARY INDICATORS Expenditure-based Self-reported Arrears on utility bills Fuel poverty-related housing faults Use of trad. fuels for space heating Lower income +++ +++ +++ ++ +++ Pensioners / Elders ++ ++ - - - + + One-person household ++ ++ - + = With children - - + = = Without children = + - = = Mono-parental families n.a. ++ ++ + n.a. Large families (3 or more children) = + ++ + ++ Located in peripheral regions + n.a. n.a. n.a. +
  • 13. District heating and panel buildings The thermal trap Low-income population Prefabricated panel buildings in suburban areas Many DH networks are now obsolete and need modernization both on the heat supplier and on the consumers’ side Fixed flat rate, no individual meters Some consumers fail to pay regularly the tariff: indebtedness DH providers do not easily allow to switch to other fuel or company Inability to control indoor temperature thermal discomfort
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. ... and they generate additional co-benefits Employment effects of deep and suboptimal renovations in the Hungarian building stock
  • 20.
  • 21. Further contact: [email_address] THANK YOU! Mum, are bills made of onion ?