Understanding and Addressing Energy Poverty in Romania

Addressing energy poverty is paramount for economic development, given its close connection to income poverty. Research indicates that lower-income households are disproportionately affected by energy price increases. Such households lack the financial means to absorb these shocks, which can lead to decreased overall welfare. This vulnerability can result in households’ refraining from using energy or using less efficient and dirtier technologies and sources, particularly during winter, which poses health risks. Moreover, global evidence suggests that residing in energy-deprived circumstances adversely affects overall well-being, human development, and environmental outcomes. The imperative to measure and address energy poverty in Romania is underscored by the potential development benefits and the European Commission’s prioritization of this issue within the European Just Transition context. This report aims to fill that gap by providing evidence on critical questions about the energy status of Romanian households. The report focuses on four key topics, relying on existing official household surveys and new qualitative and quantitative data collected in June–July 2023, with the aim of providing an updated snapshot of energy vulnerability among Romanian households.