Athens Leads Efforts to Mitigate Energy Poverty by Introducing Municipal Tax Exemptions

Energy Poverty: the Greek reality

Energy poverty is defined in the Energy Efficiency Directive as a household’s lack of access to essential energy services, such as adequate heating, hot water, cooling, lighting, and energy to power appliances. This can be caused by several different factors, or a combination of those, including at least non-affordability, insufficient disposable income, high energy expenditure and poor energy efficiency of homes.

While energy poverty is a problem across Europe, with 9.3% of the EU population having declared not to be able to keep their home adequately warm, this number doubles in Greece: 18.7%.  But for those living in Greece, keeping the house warm is not the only challenge. As summers get warmer, summer energy poverty becomes a bigger concern, as air conditioning and other cooling devices make electricity bills skyrocket.  

Pioneer steps from Athens

Cities are at the forefront of the fight against energy poverty, and Athens is leading the way. The City of Athens is taking a groundbreaking step by becoming the first city in Europe to introduce zero municipal taxes for energy-poor households. This measure comes after the establishment of an Energy Poverty Alleviation Office in the city.

Starting January 2024, an Energy Poverty Alleviation Office has been established to act as a one-stop shop for vulnerable households, building on the tools and structures of the EU-funded POWERPOOR project. This new office aims to identify energy-poor households in Athens, provide tailored guidance and support to improve energy efficiency, help households lower energy costs, and facilitate access to public funding opportunities.

To further address energy poverty, the Municipal Council has approved a new measure: households meeting the criteria of the National Energy and Climate Action Plan (revised August 2024) for energy poverty will be exempt from municipal taxes for cleaning and lighting.

Mayor Haris Doukas emphasized the importance of this initiative, highlighting that Athens is setting an example across Europe by turning insights from European projects into tangible actions.

“This is more than a financial relief program,” Doukas stated. “It’s a step towards social justice, inclusivity, and ensuring no one is left behind in the energy transition.” 

With this initiative, the City of Athens underscores its commitment to improving the quality of life for its residents while inspiring other cities to replicate innovative solutions for energy poverty alleviation.

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