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You are here: Home / cat / UNDP Analysis Shows Heating Compensation Program Reduces Energy Poverty

UNDP Analysis Shows Heating Compensation Program Reduces Energy Poverty

Dated: November 17, 2025

On 13 November 2025, a policy dialogue hosted by the Ministry of Labor and Social Protection in Moldova reviewed the outcomes of the previous heating season and preparations for the 2025-2026 cold season. During the event, UNDP presented an impact analysis of the heating compensation programme, conducted with support from the Italian Government. The study revealed that over the past three heating seasons, the programme has contributed to a 3.9 percentage point reduction in monetary poverty and a 10.6 percentage point decrease in energy poverty. The impact was particularly significant in the municipalities of Chișinău and Bălți, where energy poverty dropped by 21.2%, thanks to prevalent gas and district heating systems.

The compensation programme continues to provide vital support for low-income groups, including pensioners (34%), young people (25%), and people with severe disabilities (1%). Beyond directly assisting households, the programme has helped stabilize energy costs and demonstrates the coordinated efforts of the government and development partners. A key feature of the programme is its unique information system, which enables rapid data processing, automatic verification, and individualized compensation calculations based on household needs and available budget.

Natalia Plugaru, Minister of Labor and Social Protection, emphasized that the programme allows vulnerable families to manage heating costs while the government works to improve the energy efficiency of institutions and residential buildings, aiming for a more sustainable energy system. Daniela Gasparikova, UNDP Resident Representative to Moldova, noted that the Energy Vulnerability Reduction Fund has evolved from an emergency response into a long-term, transparent, and fiscally balanced policy instrument, supporting digital transformation and strengthening national ownership through initiatives like the eSocial platform.

Participants highlighted the importance of energy efficiency investments to reduce long-term vulnerability. Data from the Fund informs planning for such initiatives and supports programs developed in collaboration with the Ministry of Energy and the National Center for Sustainable Energy, including modernization projects for homes and public institutions. For the fourth consecutive season, UNDP continues to support the development of the registration platform, the Energy Vulnerability Information System, call centers, and strategic communications. Since its creation in 2022, the Fund has mobilized US$62 million from Sweden, Norway, Denmark, Italy, Switzerland, and Poland, and continues to be updated with Italian Government support.

The Energy Vulnerability Reduction Fund, established by the Moldovan government in 2022 with backing from the EU, Slovakia, and UNDP, has become a cornerstone for providing equitable, targeted assistance and advancing Moldova’s long-term energy resilience and social protection systems.

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