Energy Affordability and Income Security

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized ADAPTING TO HIGHER ENERGY COSTS: FINDINGS FROM QUALITATIVE STUDIES IN EUROPE AND CENTRAL ASIA THE WORLD BANK | 2015 © 2015 The World Bank Group 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved. This paper has not undergone the review accorded to official World Bank publications. The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the International Bank for Reconstruction and Development / The World Bank and its affiliated organizations, or those of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank Group encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400; fax 978-750-4470; Internet: www.copyright.com. Cover photo: Tomislav Georgiev / World Bank TABLE OF CONTENTS Acknowledgements ........................................................................................................................ 1 Abbreviations ................................................................................................................................. 2 I. Introduction ................................................................................................................................ 3 Purpose of the report ............................................................................................................... 5 Evidence ................................................................................................................................... 7 Structure of the report ............................................................................................................. 7 II. Household vulnerability to energy tariff increases ................................................................. 9 Energy affordability and income security .............................................................................. 12 III. Coping with energy payments ................................................................................................. 19 Nonpayment and payment delays .......................................................................................... 23 IV. Energy efficiency and energy-saving behavior ....................................................................... 29 V. Social assistance and protecting energy affordability ............................................................ 31 Perceptions of social assistance acessibility and effectiveness ......................................... 32 Perceptions of social assistance institutions’ accountability ............................................. 35 VI. Governance and accountability of energy institutions .......................................................... 37 Energy sector governance and communications regarding reforms ................................... 38 Interaction with energy providers ........................................................................................... 39 Recommendations to government for protecting energy affordability ............................... 44 VI. Conclusions and recommendations ....................................................................................... 44 Recommendations to government and national energy sector institutions regarding communications ......................................................... 46 Recommendations to social assistance institutions ............................................................ 47 iii Recommendations to energy providers ................................................................................. 48 Recommendations to researchers.......................................................................................... 48 VI. References ................................................................................................................................ 50 Annex 1. Qualitative assessment summaries .............................................................................. 52 Armenia ................................................................................................................................... 52 Section I: Armenia Country Context ................................................................................. 53 Section II: Findings ............................................................................................................ 57 Energy use and spending patterns ............................................................................ 57 Coping Strategies ....................................................................................................... 61 Social Assistance: The Family Benefit Program ....................................................... 64 Relationship with energy sector providers ................................................................ 66 Acceptability of energy reforms ................................................................................. 66 Section III: Recommendations ......................................................................................... 67 Belarus .................................................................................................................................... 68 Section I: Belarus Country Context .................................................................................. 69 Section II: Findings ............................................................................................................ 70 Energy use and spending patterns ............................................................................ 70 Coping strategies ........................................................................................................ 71 Social assistance ........................................................................................................ 72 Acceptability of energy reforms ................................................................................. 73 Relationship with energy sector providers ................................................................ 73 Section III: Recommendations ......................................................................................... 74 Section IV: Ethnographic Interviews ................................................................................. 75 Ethnographic interview: single mother ...................................................................... 75 Ethnographic interview: retired woman living alone ................................................. 76 Ethnographic interview: a family with six children .................................................... 77 Bulgaria ................................................................................................................................... 78 Section I: Findings ............................................................................................................. 78 Section II: Policy Implications and Conclusions ............................................................. 85 Section III: Ethnographic Interviews ................................................................................. 86 Sofia city, urban area, apartment in a concrete building ......................................... 86 Botevgrad, urban area, apartment in a brick building .............................................. 87 Village of skravena, rural area, two-story house ....................................................... 88 iv Croatia ..................................................................................................................................... 89 Section I: Croatia Country Context ................................................................................... 90 Section II: Findings ............................................................................................................ 91 Energy use and spending patterns ............................................................................ 91 Coping strategies ....................................................................................................... 93 Social assistance ........................................................................................................ 95 Relationship with energy sector providers ................................................................ 97 Section III: Policy Implications and Conclusions ........................................................... 98 Section IV: Ethnographic Interviews ................................................................................. 99 Čakovec, house ........................................................................................................... 99 Split Apartment .......................................................................................................... 101 Romania .................................................................................................................................

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