engleski

The activities of EU Member State in citizens' support in conditions of increase of energy prices

Personal over-indebtedness can be a dangerous determinant of poverty and social exclusion, while currant high expenditures for energy significantly contribute to increasing exposure to over- indebtedness. In the EU, each Member State determines its own energy mix, having in mind the rules of the internal EU energy market and taking into consideration the EU’s climate ambitions. The primary goal of a well-functioning and efficient energy market is to adopt a secure supply of energy produced as sustainably as possible and at affordable prices for consumers. Even though the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation worsened in 2022 with the Russian invasion on Ukraine. Fully aware of the seriousness of this adverse situation, many EU member state provided various forms of support for their citizens with the intention to lessen the adverse impact of increased energy prices on citizens. The article provides an overview of these measures, underlying their similarities and differences and gives an assessment of their effectiveness. The most important conclusion is that governments should direct their activities towards targeted income support, which will enable that the provided support is impartial and effective. Furthermore, it also limits its effects on state budgets and maintains price signals to support the transition to carbon neutrality.

Energy ; Prices ; Personal over-indebtedness , Support for citizens

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