Cyprus unveils new energy poverty index for targeted household support
"The implementation of Cyprus unveils new energy poverty index for targeted household support is set to drive significant advancements in Cyprus's energy market. This initiative introduces critical infrastructure updates designed to enhance capacity and align with long-term transition goals."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
Cyprus is set to overhaul its approach to combating energy poverty, proposing a new composite index designed to more accurately identify households in need of support. The Energy Service has initiated a public consultation on a draft decree outlining these revised criteria.
The proposed index aims to provide a clearer and more objective measure by evaluating three critical factors: a household's disposable income, its energy expenditure, and the overall energy efficiency of its residence. This new framework is the result of a specialized study commissioned by the Energy Ministry to assess energy poverty at a national level.
Energy poverty is defined as a household's inability to secure the essential energy services required for a decent standard of living and health, including adequate heating, hot water, cooling, lighting, and electricity for appliances. This condition typically arises from a combination of financial hardship, high energy costs, and poor household energy efficiency.
This decree marks a significant step in Cyprus's implementation of EU Directive 2023/1791 on energy efficiency. The directive was integrated into national law through the Energy Efficiency Law of 2026, which established a legal definition of energy poverty in Cyprus for the first time.
Under the current system, energy-poor households are primarily identified as recipients of public assistance from the Social Welfare Services or those receiving the Guaranteed Minimum Income from the Welfare Benefits Administration Service.
Furthermore, a broader category of vulnerable electricity customers qualifies for various forms of protection and assistance. This includes families with at least three dependent children receiving child benefit, low-income pensioners, single-parent families, and households with dependent children whose gross annual income does not exceed €19,500. The category also covers individuals with severe mobility disabilities, paraplegia, quadriplegia, blindness, and specific medical conditions that necessitate an uninterrupted electricity supply. The definitions for vulnerable customers were updated in December 2024.
Support measures available to these households include access to a special electricity tariff, increased grants for home energy upgrades or individual energy-saving initiatives, and enhanced financial assistance for residential solar panels under the net-metering scheme. Crucially, protection against utility disconnection, or guaranteed reconnection during critical periods, is also provided for individuals whose health relies on a continuous electricity supply, subject to medical board approval.