Although the rating of energy poverty in the Czech Republic is below the EU average, some regions experience hidden energy poverty.
According to the EU Energy Poverty Observatory assessment, the level of energy poverty in the Czech Republic in 2018 was 2.7% while the EU average was 7.3%. Only 2.1% of Czech society cannot afford to pay their energy bills whereas the EU average is 6.6%.
However, these numbers do not apply to two of the poorest Czech regions, Ústecký and Moravskoslezský, which derive most of their income from coal mining. Prague University of Economics and Businesses estimates that about 14% of households in the Ústecký region face energy poverty, i.e., have problems in paying their energy bills. Coal mining regions in the Czech Republic are challenged by a combination of factors which result in a higher than the national energy poverty level.
Firstly, in coal mining areas people achieve lower income than in other parts of the country, and they live-in poor-quality buildings that are not properly energy efficient, and therefore the energy used to heat them is partially wasted. Coal mining areas are mostly inhabited by those who are unemployed, low-skilled, or aged over 60 which makes them particularly vulnerable.
Secondly, energy prices in the Czech Republic are quite high. OECD data indicates that Czechs spend about 25% of their income on purchasing energy while in Sweden the poorest households spend only 3%. Furthermore, the Czech government has no proper policy in place to address this issue. The environmental think-tank, Climate Action Network Europe, claims that the administration does not even recognize that a problem exists:
“In the Czech National Energy and Climate Plan, energy poverty is discussed in a rather theoretical way,” say its experts.
However, it is not only the Czech Republic that has failed to effectively tackle energy poverty. All four Visegrad countries (Slovakia, Poland, the Czech Republic, and Hungary) are facing energy poverty and are unable to address this issue but it is only the Czech Republic that has managed to issue the National Energy and Climate Plan which is required by the EU law and which also includes an energy policy for the poorest regions. According to this strategy, the Czech government is planning to pre-finance the replacement of poor-quality solid fuel furnaces by offering soft loans to its citizens in an effort to improve energy efficiency in the poorest households.
Tackling energy poverty is also part of the EU policy that is included in the Renovation Wave strategy issued in October 2020 by the European Commission. This document considers energy transition as a remedy for energy poverty and as a solution for households with low income that cannot afford to pay their energy bills.
The other challenge is a proper definition of energy poverty. The Czech administration has yet to determine what energy poverty actually is in its strategy although this is required by the EU. Experts have pointed out that it will be difficult to effectively address this issue if energy poverty is not measured properly.
