Energy poverty on the rise in Czech Republic: 1.3 Million people affected

A rising number of Czechs are unable to afford adequate heating and energy, with figures climbing to 1.3 million last year, according to the Powerty Watch 2024 report, presented today by the European Network Against Poverty and Social Exclusion (EAPN). The report sheds light on the alarming increase in “energy poverty,” as more people are forced to spend over two-fifths of their net income on energy or struggle with energy debts. In just a few years, the number affected has nearly doubled, from 770,000 people in 2020.

“We’re witnessing a worsening crisis every year. The statistics are alarming. More and more people lack access to basic needs like heat and light, and mounting energy debts are trapping families, including children, in hardship,” said Iva Kitchenová from Charity of the Czech Republic, a co-author of the report.

This year’s findings focus on households that struggle with heating costs, with around one-fifth of the poorest households impacted. In 2020, 440,000 households were affected, which housed 770,000 people. By last year, that number had surged to 690,000 households, covering 1.3 million individuals. The report attributes this rise to low incomes, soaring energy costs, and inefficient energy use.

Co-author Jiří Vraspír referenced a related report on housing exclusion, indicating that over half a million Czech households face excessive housing costs, with nearly 860,000 adults and children living under financial strain. The report also reveals that 160,900 people, including 62,300 children, are currently in precarious or temporary housing, or are homeless.

Former ombudsman Anna Šabatová expressed concern, calling the findings “pessimistic” and attributing them to long-standing policy shortcomings. “Every indicator is worsening, and things are likely to continue deteriorating. Decades of flawed policies have left us with a system that inadequately supports basic needs,” she said. Former Prime Minister Vladimír Špidla also criticized current policies, stating that inflation has drastically eroded the value of subsistence benefits, making them ineffective.

To address the crisis, the Czech EAPN network advocates for housing support legislation, a review of state assistance criteria, and a simplified benefits system. The report calls for reforms that would merge four existing benefits into one and increase wage levels to better support families.

This year’s Powerty Watch report also covers migration, employment of foreign workers, and long-term care needs. Representatives from organizations, government, Prague City Hall, and academia convened to discuss the findings, highlighting the urgency of policy reform to counteract poverty and social exclusion in the Czech Republic.

Source: CTK