The Romanian Energy Poverty Observatory (ORSE) has analyzed energy vulnerability from a new perspective, depending on the country’s regions, highlighting significant differences. The analysis, included in the 2024 Annual Report, shows that households in various regions of the country face distinct challenges in energy access and affordability. The North-East region of Romania records the highest incidence of extreme energy poverty, manifested by energy underconsumption – most likely caused by a high level of underdevelopment and income below the national average. According to the ORSE report, 30.8% of households in this region cannot afford to cover their consumption needs, due to financial constraints, compared to the national average of 20%. The Bucharest-Ilfov region is the least exposed to this phenomenon.
ORSE annually updates the level of energy poverty in Romania, using conventional indicators calculated based on the latest data published by the National Institute of Statistics from the Household Budget Survey (ABF). The 2024 Annual Report published by ORSE includes a new assessment of energy poverty at the national level, based on the most recent available data (ABF 2023).
The data analyzed by ORSE experts show that energy poverty in Romania remains a major problem, affecting a significant segment of the population, despite a slight decrease in the number of households that allocate over 10% of their monthly budget to energy (from 37.3% in 2021 to 34% in 2023). At the same time, it is observed that the pressure on energy bills is increasingly starting to affect households in the middle class and even in higher income categories.
“The phenomenon is widespread and growing. The COVID-19 pandemic and the energy crisis caused by the war of aggression in Ukraine have made some categories much more affected by these manifestations, especially by extreme forms of energy poverty. Households across the income spectrum are affected, but those in rural areas with lower incomes are much more exposed,” said Anca Sinea, co-founder and coordinator of the Romanian Observatory of Energy Poverty (ORSE).
The LIHC indicator, which reflects the fall below the poverty line after paying bills, remains at around 10%. “This indicator shows poor people who, after paying their energy bills, are left with no money in their pockets for other needs, such as clothing, medicine and other, sometimes basic, necessities,” explained Anca Sinea, coordinator of ORSE. According to ORSE experts, in 2023 the number of these cases increased especially among the poorest households in Romania (income deciles 1 and 2), which are the most affected.
Approximately 20% of households show energy underconsumption (consumption below half the median – indicator M/2), a sign of extreme poverty, and a similar percentage records overconsumption (indicator 2M), associated with housing inefficiency or high expectations of comfort.
Energy poverty, analyzed by region
A new perspective of analysis by the Romanian Observatory of Energy Poverty (ORSE) consists in identifying the differentiated manifestation of energy poverty by development macroregions.
ORSE data show that the northeast of the country is the most affected region in terms of extreme energy poverty: 30.8% of households cannot afford to cover their consumption needs and choose, due to financial constraints, not to use energy.
By comparison, the levels recorded in the other regions are: South-East – 19.1%, South-Muntenia – 19.2%, South-West Oltenia – 29.4%, West – 11.4%, North-West – 14.9%, Center – 18%, Bucharest-Ilfov – 8.8%.
The burden of energy costs on the overall household budget, exceeding 10% of income, is much higher in the South-East (35.70%), South-Muntenia (38.80%) and West (40%) regions than in the other regions. The latter two are distinguished by excessive urban consumption characterized by high energy consumption caused by inefficient housing infrastructure.
The West region is predominantly urbanized, as a result of the region’s historical profiling on mining activities and heavy industry. In South-Muntenia the impact of inefficient consumption produces important effects both at the level of the general population, and significant effects of underconsumption.
The Bucharest-Ilfov region has the lowest indicators on all components of the analysis. The Sud-Muntenia region is, overall, the region most affected by energy poverty, in all forms of manifestation of this phenomenon.
Causes of energy poverty are multiple and interconnected – low income, high energy costs and low consumption efficiency – often superimposed on other social vulnerabilities. The impact of not addressing the phenomenon is multiple, including: social marginalization, increasing inequalities and affecting physical and mental health.
To prevent and combat energy poverty, proven effective measures are needed: renovation of buildings to reduce energy losses, easier access to green energy sources, better coordination between authorities and financial support directed to those who really need it. It is important that these solutions are applied uniformly and adapted to the needs of each community, with an emphasis on early identification of risk situations.