We Spend 102.6 Euros Monthly on Basic Energy Needs

Two-thirds of Croatian households spend more than ten percent of their total income on basic energy needs, and according to the most commonly used international methodology, these are considered energy-poor households, as shown by the results of the research presented today by GfK and the United Nations Development Programme (UNDP).

The research revealed that from an average total income of 840 euros per month, Croatian households spend 102.6 euros or 12.2 percent on basic energy needs.

In most other European Union countries, more than ten percent of total income on basic energy needs is spent by between 10 and 40 percent of households, says UN coordinator and UNDP Resident Representative in Croatia Louisa Vinton.

She adds that the economic crisis has intensified the issue of energy affordability in Croatia, with the share of households with excessive energy expenditures rising from 42 percent in 2007 to 63 percent now.

The research results show that nearly ten percent of Croatian households cannot adequately heat their homes in the coldest months, and more than 26 percent are late in paying their monthly energy bills.

As possible solutions, UNDP suggests increasing household incomes, which directly depends on stimulating economic growth, reducing energy prices through greater market competitiveness, increasing energy efficiency in households, and enhancing state aid for vulnerable households.

This aid should be better distributed after Croatia, according to announcements from the head of the working group for vulnerable customers at the Ministry of Economy, Cvjetko Zorović, adopts regulations by the end of the year that will determine who can enter the category of vulnerable customers.

There is no widely accepted definition of energy poverty, and the EU is also working on adopting a common definition, which is expected by the end of the year. The most commonly used definition is from the United Kingdom, Australia, and New Zealand, which considers households that spend more than ten percent of their income on energy as energy-poor households.