Addressing Energy Poverty in Rural, Low-Income Bulgarian Households

Problem Statement:

Bulgaria is considered to be one of the most energy poor Eastern European countries. Bulgaria is not only located in one of Europe’s poorest regions, but is also in an area with very cold winters. The transition from a command economy to a market-based system resulted in an increase of unemployment, decrease in real income, and a rise in energy prices due to the removal of state subsidies; as a result, low-income Bulgarian households can no longer afford the energy sources they once could12. They are now turning away from cleaner network energy sources, such as central heating and electricity, to more readily available sources, such as fuelwood and coal, that are damaging to the environment and health. This phenomenon is especially common among rural households, where the cost of clean network based energy is greater due to a higher transmission cost. This means that Bulgaria’s poorest are experiencing a process of “energy degradation,” in which they are reverting to less sustainable and technologically advanced energy services.

Although over twenty years have passed since Bulgaria started its economic reform program in 1991 to transition to capitalism, energy poverty has not yet been eradicated. Approximately 12.4% of Bulgarian households in 2012 were in a situation in which they had to rely on social support to finance their energy needs during the winter season13. This figure is considerably less than the 64.5% of households that reported they could not keep their household ‘adequately warm’ in the EU’s Statistics on Income and Living Conditions survey. The same survey reported an average of 8% for the European Union (EU). Looking ahead, the level of energy poverty within Bulgaria is only expected to increase, due to the progressing integration of electricity markets.