New energy vulnerability categories: primary and extreme

Two categories of energy vulnerability will be added to the existing ones: primary and extreme. Their introduction is needed so as to distinguish the most vulnerable households and offer them higher compensation, according to a bill approved by Parliament in the first reading.

MP Dan Perciun, the sponsor of the bill, said that during the 2022/23 cold season, as much as 80% of households were classed as having a very high level of energy vulnerability. The addition of two new categories will help better differentiate households that need even more protection.

To make the energy bill relief scheme more equitable, added Perciun, the list of criteria used in determining the vulnerability rating will be expanded. Currently, they do not differentiate between adults and children, people with disabilities, urban versus rural residents, affecting the fairness of the system.

Besides the addition of new vulnerability categories, the bill proposes integrating the two main instruments for supporting people during the cold season: the cold season aid and the bill relief scheme. In the past cold season, about 170,000 families benefited from both instruments simultaneously.

Additionally, in order to have a better picture of a family’s income, it is proposed to grant access to databases administered by banks, non-bank lenders and other financial institutions. This measure is needed considering the “significant share” of undeclared and underdeclared work in Moldova.

The bill is yet to be adopted in the final reading to become a law.

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