ENERGY POVERTY DEFINITION - IN PUBLIC CONSULTATION - Filenews 17/8
The Energy Agency has put to public consultation the draft of the Decree entitled "The Energy Efficiency (Determination of Energy Poor Households) Decree of 2026", which establishes a new framework for the recognition of households affected by energy poverty.
The aim is to create clear and objective criteria so that economic and energy support measures are more effectively directed towards those who really need them.
The Decree is also part of the adaptation of Cypriot legislation to the European Energy Efficiency Directive 2023/1791. The Directive was incorporated into national law with the Energy Efficiency Law of 2026, which introduced a legal definition of energy poverty for the first time.
What is considered energy poverty?
Energy poverty is defined as the inability of a household to ensure the necessary energy services for a decent standard of living and health.
These include:
adequate heating
hot water
Cooling
Lighting
electricity for the operation of household appliances
Energy poverty is linked to a combination of factors, such as financial weakness, low disposable income, high energy costs and low energy efficiency of the home.
Composite indicator for determining beneficiaries
To quantify energy poverty at the national level, the Ministry proceeded with the preparation of a specialized study.
Based on the study, a composite energy poverty index was developed, which takes into account:
hot water
Cooling
Lighting
electricity for the operation of household appliances
Energy poverty is linked to a combination of factors, such as financial weakness, low disposable income, high energy costs and low energy efficiency of the home.
Composite indicator for determining beneficiaries
To quantify energy poverty at the national level, the Ministry proceeded with the preparation of a specialized study.
Based on the study, a composite energy poverty index was developed, which takes into account:
The disposable income of the household
expenditure to meet energy needs
the level of energy efficiency of the home
The proposed Decree seeks to more objectively identify households facing energy poverty and to better target the relevant support measures.
expenditure to meet energy needs
the level of energy efficiency of the home
The proposed Decree seeks to more objectively identify households facing energy poverty and to better target the relevant support measures.
Who is considered energy poor today?
Based on the existing framework, the category of energy-poor households includes:
Recipients of public assistance from the Social Welfare Services.
Beneficiaries of the Guaranteed Minimum Income from the Welfare Benefits Management Service.
The existing regulatory framework is based on Decrees and Decisions published in the Official Gazette of the Republic on September 26, 2023 and concern the energy poverty criteria, the categories of vulnerable customers, their protection measures and the public service obligations of electricity suppliers.
As of December 1, 2024, a new Decree for the determination of vulnerable customers came into force, repealing the corresponding Decree of 2023. On the same date, a new Ministerial Decision on public service obligations came into force.
Beneficiaries of the Guaranteed Minimum Income from the Welfare Benefits Management Service.
The existing regulatory framework is based on Decrees and Decisions published in the Official Gazette of the Republic on September 26, 2023 and concern the energy poverty criteria, the categories of vulnerable customers, their protection measures and the public service obligations of electricity suppliers.
As of December 1, 2024, a new Decree for the determination of vulnerable customers came into force, repealing the corresponding Decree of 2023. On the same date, a new Ministerial Decision on public service obligations came into force.
The 20 categories of vulnerable customers
Vulnerable electricity customers fall into the following categories:
Families with three or more children who receive child benefit for three or more dependent children.
Recipients of benefit for pensioners with low incomes.
Victims who are beneficiaries of a special monthly pension from the Victims' Relief Fund.
Recipients of severe motor disability benefit.
Recipients of care allowance for paraplegic people.
Recipients of care allowance for quadriplegic people.
Recipients of special sponsorship for the blind.
Recipients of dialysis kidney patients' distribution allowance.
Kidney patients undergoing peritoneal dialysis.
People suffering from multiple sclerosis.
People who have undergone a heart transplant.
People with active megalomania.
People with active Cushing's disease.
People with active pheochromocytoma.
People with autonomic diabetic neuropathy.
Patients with permanent tracheostomy.
Patients with a primary or metastatic tumor of the central nervous system.
People suffering from Raynaud's syndrome.
Family units with dependent children up to 18 years of age, which receive child benefit and have an annual gross family income of up to €19,500.
Single-parent families receiving a single-parent family allowance in addition to the child allowance.
Recipients of benefit for pensioners with low incomes.
Victims who are beneficiaries of a special monthly pension from the Victims' Relief Fund.
Recipients of severe motor disability benefit.
Recipients of care allowance for paraplegic people.
Recipients of care allowance for quadriplegic people.
Recipients of special sponsorship for the blind.
Recipients of dialysis kidney patients' distribution allowance.
Kidney patients undergoing peritoneal dialysis.
People suffering from multiple sclerosis.
People who have undergone a heart transplant.
People with active megalomania.
People with active Cushing's disease.
People with active pheochromocytoma.
People with autonomic diabetic neuropathy.
Patients with permanent tracheostomy.
Patients with a primary or metastatic tumor of the central nervous system.
People suffering from Raynaud's syndrome.
Family units with dependent children up to 18 years of age, which receive child benefit and have an annual gross family income of up to €19,500.
Single-parent families receiving a single-parent family allowance in addition to the child allowance.
The support measures
Measures to tackle energy poverty and protect vulnerable consumers include:
Measures to tackle energy poverty and protect vulnerable consumers include:
Inclusion in the special electricity tariff
Increased sponsorships for energy upgrading of homes or implementation of individual energy saving measures
increased financial support for the installation of a residential photovoltaic system with the Net Metering method
non-disconnection or reconnection of electricity supply in critical periods for vulnerable consumers who need an uninterrupted supply of electricity for health reasons, following the approval of a competent Medical Council
