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Cyprus proposes new energy poverty identification system based on income, costs, and home efficiency

Cyprus is introducing a new system to better identify energy-poor households by evaluating income, energy expenses, and home energy efficiency. A public consultation on a draft decree has been launched by the Energy Service to establish clearer criteria for qualifying for energy support. The proposed composite index stems from a specialised study commissioned by the Energy Ministry, aiming to objectively pinpoint households in need and target assistance more effectively.

Energy poverty is defined as the inability to secure essential energy services such as heating, hot water, cooling, and electricity, often caused by financial hardship, high energy costs, and inefficient homes. This initiative aligns with the EU Directive 2023/1791, which Cyprus incorporated into its legislation through the 2026 Energy Efficiency Law, formally defining energy poverty for the first time.

Currently, energy-poor households include recipients of public assistance and the Guaranteed Minimum Income, with additional protections for vulnerable consumers like low-income families, pensioners, and those with severe medical conditions. Support measures include special electricity tariffs, grants for energy upgrades, financial aid for solar panels, and protections against energy disconnections critical for health.

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