Protecting vulnerable groups from having their electricity cut off

Lack of electricity or power is one of the largest barriers to overcoming poverty. Energy is a basic necessity for human activity and economic and social development. Access to energy services is a key component of alleviating poverty and an "indispensable element of sustainable human development. Having electricity means the ability to study at night and get an education. It means the difference between subsistence farming and back-breaking labor, and having the technology to create large enough crop yields to make a living. It allows people to have and power cell phones, which are being used across the developing world for mobile banking and to access the Internet.

A directive adopted by the European Council and the European Parliament, in 2009, specifies that Member States shall take appropriate measures to protect electricity final consumers, especially vulnerable consumers. In this context, Member States shall define the concept of vulnerable customers which may refer to energy poverty and, inter alia, to prohibit the disconnection of electrivity to such customers in critical times. In addition, the EU underlined that Member States shall take appropriate measures, such as formulating national energy plans, providing benefits in social security systems to ensure the necessary electricity supply to vulnerable customers, or providing for support for energy efficiency improvements to address energy poverty where identified, including in a broader context of poverty.

However, despite these measures, according to a Member of the European Parliament, the Greek government has announced a new tax measure: a property tax that is to be collected directly through electricity bills issued by the Greek Electricity Board (DEI), so as to ensure immediate payment. The only provision made for vulnerable social groups in connection with the new tax, the introduction of a lower rate (EUR 0.5/square metre), has in practice been removed since, according to the latest version of the regulations, the first instalment of the tax will be paid without any opportunity for negotiation, failing which the DEI will be obliged to cut the power supply off immediately, without any regard for those sections of the population who are subject to specific regulations on the grounds of special home-care needs, such as people requiring mechanical assistance.

The property tax may in effect remove the possibility for the settlement of debts that has existed up to now.  More than 300 000 DEI customers who are covered by or have requested a special settlement procedure are now at risk of having their electricity cut off and thus being deprived of this social asset.  Most of these customers are retired people on low pensions, unemployed people, people on low incomes, vulnerable groups and people paying the social domestic tariff. At the same time, the tax is leading thousands of other customers to ask for their electricity connection to be cut in order to avoid paying the tax, which will have the effect of reducing the revenue of both the DEI and other bodies such as local authorities, some of whose income is paid through electricity bills.

This may be valuable and important new evidence about the impact of economic decisions on the health of people, and on the societal impacts of not protecting health in all policy choices that are made.

To access the directive related to the common rules for the internal market in electricity, click here