site.btaOmbudsman Proposes Protection for Energy-Poor Individuals

Ombudsman Proposes Protection for Energy-Poor Individuals

Sofia, July 25 (BTA) - Poor people who have difficulty paying their electricity bills could receive vouchers from the government to buy energy-efficient appliances, National Ombudsman Maya Manolova proposed during a public discussion on energy poverty on Monday. The event was organized by Manolova in partnership with the Active Consumers Association.

The Ombudsman urged public institutions, energy distributors and NGOs to sign a memorandum on protecting the energy-poor. The draft of the memorandum will be discussed until the beginning of September. The document should contain a clear definition of energy-poor persons who are entitled to social protection in connection with the liberalization of the domestic energy market, Manolova said.

She noted that energy poverty criteria in Europe vary from country to country. In the United Kingdom the energy-poor are those who spend at least 10 per cent of their household income on home heating, and in France the term applies to all households that cannot maintain a normal temperature in their homes (21 C in the main rooms and 18 C in the auxiliary rooms).

Bulgaria is the most energy-poor nation in Europe by all standards: inability to keep homes warm (70 per cent); delayed (unpaid) utility bills (50.7 per cent); and energy-inefficient homes (29.5 per cent), Manolova said.

According to data of the Statistical Office of the European Union (Eurostat), in April 2016 some 34.2 per cent of Bulgarians were at a risk of poverty - unable to keep their homes warm and pay their bills. About 2.5 million of the country's 7 million population live in serious deprivation; the ratio is more than four times the average EU level of 8.2 per cent. Unofficial poverty in Bulgaria is estimated at 36 per cent, based on the share of the working poor, the health-uninsured, and poor pensioners.

The so-called welfare rate is a short-term measure which will be in place for up to five years. It is aimed to support people who already receive energy benefits for heating; elderly and lonely people aged over 70, whose pensions are their only income; persons living under the poverty line; persons with over 90 per cent work disability who need personal assistance; and families of children with disabilities. Beneficiaries will be reimbursed for the costs of 100 kWh of electricity a month if they use central heating, and 150 kWh if they do not.

The welfare package is far from enough and covers only 500,000 households, or 1.1 million people, Manolova said.

Other ways of supporting the poor, proposed by the Ombudsman, include: exempting delayed utility payments from interest; offering flexible rescheduled payment plans; conducting free energy checks of buildings; creating a protective network to ensure that vulnerable consumers are not cut off in critical situations; and making it legally possible for groups of people to replace their energy suppliers in order to get lower prices.

Manolova warned that some companies try to set "enslaving clauses" in the agreements with their clients, preventing them from switching to a different electricity supplier.