Page 10 - EurOil Week 42 2021

EurOil POLICY EurOil

EU warns of rising fuel poverty

amid price spike

EUROPE THE EU’s Commissioner for Jobs and Social their home or feeding their family properly or
Rights Nicolas Schmit has warned that fuel pov- paying the rent despite working full time,” ETUC
Some 2.7mn working erty could rise as gas and power prices increase. Deputy General Secretary Esther Lynch com-
poor in Europe cannot More than 2.7mn of the EU’s working poor mented. “Unfortunately, rising energy prices
afford to heat their already cannot pay to heat their homes properly, mean even more people face returning from a
houses properly. according to a September study by the European long day or night’s work to a cold home this win-
Trade Union Confederation (ETUC). Amid ter and their children doing their homework in
a surge in wholesale gas and power prices in the cold.”
recent months, that figure could increase, Schmit The confederation called on the EU to intro-
warned. While the European Commission (EC) duce a “threshold of decency” into a draft min-
can help EU countries shield consumers from imum wage directive, which would guarantee
high prices, it is primarily up to national govern- that statutory minimum wages are never less
ments to take action, he said. than 60% of the median wage and 50% of the
The EC announced on October 13 a “tool- average wage of any EU country. It said min-
box” of measures to protect consumers and imum wages were below those levels in 20 EU
businesses from the energy crisis, including member states.
emergency income support for poor households. Feed-in tariffs and other mechanisms used
A number of national governments have already to fund renewable energy projects are a key part
announced support schemes. Germany has of energy bills in many EU states. In its toolbox
cut a tax that is used to fund renewable energy of measures, however, the EC called for invest-
development by a third, while France is offering ments in clean energy to be expanded further,
low-income households a €100 ($116) grant to which would increase the burden on households
cover energy expenses. unless other means of support are introduced.
The ETUC study estimated that 15% of the “The clean energy transition is the best insur-
EU’s working poor were in fuel poverty. ance against price shocks like this in the future,
“There are millions of low-paid workers in and needs to be accelerated, also for the sake of
Europe who have to choose between heating the climate,” the EC said. ™

P10 www. NEWSBASE .com Week 42 21•October•2021