The document discusses energy poverty in Hungary through statistics, policy measures, and human stories. It provides statistics showing that 14.6% of households spend over 34% of income on energy, with 10-8% of the population unable to properly heat their homes. Government policies aim to increase energy efficiency through insulation programs, though funding has been inconsistent. Cost of living increases and reductions in social benefits have negatively impacted low-income households. The stories highlight indebtedness, living in cold homes, and use of unsafe alternative fuels as impacts of energy poverty. Habitat Hungary works with vulnerable groups through energy efficiency services and training.

1. Energy Poverty in Hungary: Statistics, Policy, and
Human Stories

2. Energy Poverty Definition in Hungary
cost of (optimum) energy consumption
income
income
cost of energy
energy efficiency
> ideal/bearable/acceptable
level

3. Energy Poverty Definition in Hungary
Energiaklub (Fülöp, Fellegi, 2011) – proposal:
1) Household lives below poverty line
2) 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.

4. Statistics – according to proposed definition
Energiaklub (Fülöp, Fellegi, 2011) – proposal:
1) Household lives below poverty line
2) 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%)

5. 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/

6. Statistics – poverty housing among children

7. 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.

8. 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% -

9. 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

10. 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)

11. 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

12. 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

13. Thank you for your attention!
András Szekér
National Director
Habitat for Humanity Hungary
andras.szeker@habitat.hu
www.habitat.hu