Affordability of Energy in Austria
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2 Affordability of Energy in Austria A regulator s perspective Dr. Florian Pichler, E-Control Austria, Consumer Affairs CERRE Expert Workshop, Brussels, 19 May 2015
3 Content Affordability and energy poverty Facts and figures Protection mechanisms in Austria Evaluating the state of play 3
4 Affordability and energy poverty Context - comparably generous and comprehensive welfare system plus NGO services - energy expenses are implicitly covered by minimum income benefit Debates - infrequent, scattered and selective but with effect on policy makers/government - based on data from EU-SILC (households that cannot afford adequate heating) Definitions or lack thereof? - no legal definition of affordability or energy poverty - common sense reached on what affordability/energy poverty is, by and large Uses - various legal mentions of energy poverty although without description/explanation - energy service companies CSR and NGO campaigns 4
5 E-Control on energy poverty 2013 work on definition of energy poverty in Austria: A household is considered energy poor if its income is below the at-risk-of poverty threshold and, at the same time, it has to cover aboveaverage energy costs. 1st expert conference on energy poverty 2014 fact/data finding on energy poverty 2nd expert conference on energy poverty Households Income [equivalised ] Housing [equivalised ] Energy [equivalised ] all at-risk-of-poverty not at-risk-of-poverty Cannot afford adequate heating (EU-SILC) Energy poor (E-Control)
6 Facts and figures (2013) Income and expenditure of Austrian households - average disposable household income (equivalised): 38,517 ( 24,366) [EU28: 17,661] - % at-risk-of-poverty/social exclusion: 18.8 [EU28: 24.5] - at-risk-of-poverty income threshold/percentage: 13,244 /14.4% [EU28: 16.6%] - income inequality (Gini): 27 [EU28: 30.5] - average household consumption expenditure (2010): 34,863 [EU 28: 25,010] - average household energy (electricity, heating, warm water) expenditure (equivalised): 1188 (4.8% of equivalised average disposable household income) - % cannot afford adequate warm homes: 2.7 [EU28: 10.8] Price of energy - electricity: 20.5 cent/kwh; gas: 7.0 cent/kwh - average annual bill (incumbent, standard product, Vienna): - electricity (3500 kwh): (1.9% of average disposable household income) - gas (15000 kwh): 1, (3.1%) 6
7 Protections in Austria Income support - general and means-tested benefits for low-income households Energy support - financial contributions - obstacles to disconnection - counselling centres at (biggest) suppliers - supplier of last resort - prepayment meters - voluntary assistance by energy service companies 7
8 Evaluation Recent engagement welcome but so far of little help for many households in need - lack of definitions opens the floodgates to unsystematic, partial and insufficient assistance by state authorities and energy companies - non-automated support mechanisms turn vulnerable into suppliants/applicants So far, little empirical evidence that affordability of energy/energy poverty is key concern of lowincome households in Austria Question remains whether and how to involve energy companies in assistance schemes at all 8
9 Conclusions Lack of/blurred definitions of key concepts exacerbate assistance Affordability/energy poverty not among major social issue in Austria Keep-face protections needed Review role of energy service companies in support schemes 9
10 Sources Energie-Control Austria (2015). Price compariosn tool for households (Tarifkalkulator). Available online: last accessed April 8, Energie-Control Austria (2014): Proceedings of the 2nd Expert Conference on Energy Poverty in Austria. Available online: last accessed April 8, Energie-Control Austria (2013): Energy poverty in Austria. Definitions and indicators. Available online: last accessed April 8, Energie-Control Austria (2013). Proceedings of the 1st Expert Conference on Energy Poverty in Austria. Available online: /Fachtagung%20Energiearmut, last accessed April Eurostat (2015): Database. Available online: last accessed April 8, Statistik Austria (2015): Disposable and equivalised household income. Available online: pdf, last accessed April 8, 2015 (German only). Statistik Austria (2013): Standard-Dokumentation - Metainformation (Definition, Erläuterungen, Methoden, Qualität) zur Konsumerhebung 2009/2010. Available online: last accessed April 8,
11 Contact Florian Pichler florian.pichler@e-control.at 11
12 12
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