Together for 1.5
S lovenia is taking a step in the right direction with the proposed establishment of an energy poverty reduction scheme in the draft of revised NECP and the implementation of long-term financing and setting up a Strategic Council on Energy Poverty. However, more ambition is needed in view of the increase in energy poverty and the energy crisis.
– Energy poverty is rising in Slovenia
– The revised NECP proposes a reduction target, but more ambition is needed
– Establishing an energy poverty reduction scheme as part of revised NECP is a step in the right direction
According to the latest available data, more than 100,000 people (7.2% of households) in Slovenia live in energy poverty, and many more live just above the (energy) poverty line, i.e. in material circumstances that do not allow them to live a decent life. The latest inequality report also shows that inequality is increasing in Slovenia. The energy crisis and the generally high inflation rate over the last year have exacerbated these trends.
In this context, the inclusion of a target, timeline and a number of concrete measures is a step in the right direction. However, the currently envisaged energy poverty target (i.e. reaching 3.8% of energy poor households by 2030) should be strengthened, especially in the light of the energy crisis.
Measures proposed in draft of revised NECP include the establishment of an energy poverty reduction scheme (establishment of a project office with a local advisory network, investment incentives for RE&EE measures and energy advising for the people affected by energy poverty), the establishment of a pilot phase for the deployment of the scheme (2024-2026), the implementation of long-term financing for the operation of the scheme and the establishment of a Strategic Council on Energy Poverty.
In addition, the draft of the revised NECP also proposes taking income into account regarding the level of RE&EE subsidies. This is an important measure to alleviate energy poverty and at the same time significantly contribute to the acceptance of green transition measures by the population and thus have a positive impact on the success of the green transition in general.
Nevertheless, the drivers of energy poverty are deeply structural – going well beyond the low income – poor energy efficiency – high expenditure triad. In light of the above data and findings, additional structural measures are therefore needed to go beyond specific energy poverty measures and focus on housing, precarious employment, insecurity and poverty in general. In this context, the NECP should also identify broader structural changes that contribute holistically to tackle energy poverty and other social vulnerabilities (such as better jobs in the energy transition).