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Balancing Act: Cutting Energy Subsidies While Protecting Affordability
Country Benefit
Description/eligibility
Kyrgyz Categorical lgoti Republic
The largest group of privileges beneficiaries—families living in mountainous regions—is entitled to a specific electricity subsidy. Eligibility is mainly categorical and independent of household income.
Latvia
The amount of the benefit varies by municipality depending on the available resources. If a person is granted the status of a needy person and has expressed a wish to be a tenant of a social flat (public housing), the person can rent a flat as social housing in which reduced rent and utility payments are charged.
Housing benefit
Lithuania Reimbursement for the cost of house heating and hot and cold running water
The benefit is provided for low-income families and based on a means test. A family should not have to pay more than 20 percent of the family income above the guaranteed minimum income (state-supported income, that is, LTL 350 or €101 per family member to heat a standard size accommodation; 5 percent of the family income for a basic standard of hot water; 2 percent of the family income for a basic standard of cold water. The standard size of accommodation is defined as 38 square meters for 1 person, and 12 square meters for each additional person living with them.
Moldova Nominative compensations (housing and utilities compensations)
Nominative compensations are cash benefits paid on categorical principles from the state budget to support the payment of heating bills, hot and cold water consumption, natural gas consumption, sewerage, electricity bills, liquid gas in cylinders, coal, and firewood consumption. These allowances are calculated based on the nominative cost and monthly energy consumption. They compensate between 25 to 50 percent of the utilities bill or the acquisition of coal and firewood depending on the category of beneficiary. In 2010, new beneficiaries were no longer accepted. A new means-tested program was introduced in 2011.
Hungary Home maintenance support
Home maintenance support can be claimed if the per capita income in the household does not exceed 150 percent of the minimum old-age pension and the acknowledged costs of housing maintenance exceed 20 percent of the monthly income of the household. In addition, persons participating in a debt management procedure also qualify for this support. Local government can also provide local home maintenance support as an independent benefit or as a supplement. The minimum amount of this support is Ft 2,500 (€9.26) per month.
Poland Special needs allowance
A person or a family can receive a special needs allowance for housing or heating costs. The amount depends on the decision of social assistance centers.
Romania
Heating benefit
The heating benefit is a seasonal cash transfer program targeted through a means test to households from the poorest half of the population. The program operates mainly for the winter season (November to March). It covers a share of the heating costs, with higher subsidies for households in the lower income brackets. There are three service delivery channels, depending on the type of fuel used for heating: households connected to the central heating grid; households heated with natural gas; and households heating with wood, coal, or crude oil fuels. The amount of the subsidy varies between lei 19 and lei 262.
Russian Federation
Housing and utilities subsidies
Accommodation costs and services are subsidized in accordance with income levels and for certain categories of the population (for example, pensioners, war veterans, invalids). Subsidies are paid in case the cost of accommodation exceeds 20 percent of the income level of the household.