Inhospitable Regulatory Regime

Energy tariffs particularly in regulated markets can have a negative impact on the consumers’ motivation to opt for energy efficiency measures. This is particularly true for markets where households are exposed to energy prices below the actual cost of production. As the deficit is covered by national governments, the households miss the necessary exposure to price signals and thus are unable to assess the economic viability of investing in energy efficiency measures. This barrier is particularly prevalent in Central and South East European Member States, where energy inefficiency and energy intensity are highest and households purchase energy at a regulated price.