Significant Decline in the Proportion of People Living in Cold Homes

Since the introduction of the reduction in utility costs in 2013, the affordability of energy supplies for households has improved significantly in Hungary. Based on the latest Eurostat survey, the Oeconomus Economic Research Foundation examined an indicator of energy poverty, namely the proportion of the population that is unable to heat their homes adequately for financial reasons.

Latest data from Eurostat – the EU’s statistical office supervised by the European Commission – reveals that 9.2% of the European Union’s nearly 450 million inhabitants, or over 41 million people, were unable to heat their homes adequately in 2024, according to the Oeconomus analysis.

Hungary ranks 14th in the EU ranking, placing it in the middle of the pack.

Percentage of people who cannot adequately heat their homes for financial reasons (2024):

The study states that the percentage of people living in energy poverty has been reduced by more than two-thirds within a decade thanks to the introduction of utility cost reductions. It is also striking that the introduction of official utility cost caps for private households in 2013 halted the increase in the proportion of people living in cold homes seen in previous years.

While in 2012/2013 almost 15% of Hungarians were unable to heat their homes adequately, this proportion fell to 6% within a decade.

The proportion of Hungarians living in cold homes was almost one and a half times higher than the EU average in 2013 (10.8% and 14.6%, respectively), but fell to half that level by 2024 (9.2% and 6%, respectively).

Trend in the proportion of people living in cold homes in Hungary and the EU average:

Although the proportion of people living in cold homes fell by one and a half percentage points in the EU as a whole between 2013 and 2024, this cannot be considered a general phenomenon. In 11 of the current 27 EU Member States, the proportion of people who cannot heat their homes adequately has increased.

Hungary is among the countries that has achieved an improvement (8.6 percentage points) during the period mentioned, ranking ninth in this regard.

Change in the proportion of people who cannot adequately heat their homes between 2013 and 2024:

The effects of the energy price shock between 2021 and 2023 were felt most strongly on the European continent. This was also reflected in the change in the proportion of people living in cold homes.

Within two years, the proportion of people who cannot adequately heat their homes has increased by an average of one and a half times in the EU.

The crisis also made itself felt in Hungary, as the proportion of the affected group rose by almost 30%. In 11 countries, the proportion of people living in cold homes more than doubled. The effects of the crisis were most drastic in Denmark, Germany, Czechia, the Netherlands, and Sweden.

Change in the proportion of people who cannot heat their homes adequately between 2021 and 2023:

Oeconomus concluded that the introduction of utility cost reductions in Hungary has led to a decrease in the share of households experiencing energy poverty. This government policy has therefore played a significant role in reducing poverty and improving household living conditions.

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