The energy crisis fundamentally altered the economic environment in which households operate. Rapid increases in wholesale electricity and gas prices, triggered by global supply-demand imbalances and later amplified by Russia’s aggression against Ukraine, translated—albeit with a delay and partially mitigated by state interventions—into substantially higher final energy prices for households. These price increases coincided with record inflation and declining real wages, placing additional strain on household budgets and limiting the capacity of households to respond through investments that would enhance their own energy efficiency and independence.
The forthcoming extension of emissions trading to the buildings and transport sectors (ETS2) will further affect household energy costs, particularly for those relying on fossil fuels for space and water heating. While ETS2 is designed to support decarbonisation and improve the efficiency of price signals, its social impacts will depend critically on national implementation choices and the effective use of compensatory instruments such as the Social Climate Fund.
This paper examines energy poverty in the V4 countries at the intersection of these two dynamics: the aftermath of the recent energy crisis and the anticipated impacts of ETS2. It assesses how energy poverty has evolved in recent years using available objective and subjective indicators, identifies structural vulnerabilities specific to the V4 region, and analyses how future carbon pricing may interact with existing socio-economic conditions. The aim is to contribute to an evidence-based discussion on how climate policy can be designed and implemented in a way that is both socially fair and economically effective.
This paper was published with the kind support of the International Visegrad Fund within the project V4 Energy Think Tank Platform 2025.
