When discussing the concept of poverty, it is predominantly understood by society through an economic lens, primarily as a lack of financial or material resources necessary to meet basic needs. On the one hand, it is indisputable that the meaning of poverty has evolved over time. On the other hand, the role of the state in ensuring social security for its citizens has also undergone significant transformation. Since the functioning of the state is governed by law, it is essential to examine the legal standards of social protection as defined in regulatory frameworks.
Article 22 of the Universal Declaration of Human Rights affirms that everyone has the right to social security and the realisation of economic and social rights indispensable for their dignity, through national efforts and in accordance with the structure and resources of each country (Amendment to the Law on Social Security, 2020). In 1961, the Council of Europe adopted the European Social Charter—an equivalent to the European Convention on Human Rights in the field of economic and social rights—which entered into force in 1965. Latvia acceded to the Charter in May 1997. According to Article 13 of the European Social Charter, anyone without adequate resources has the right to social and medical assistance.
With the inclusion of a chapter on fundamental rights in the Constitution of the Republic of Latvia (Satversme, 1922), it was established that every individual has the right to social security in cases of old age, disability, unemployment and in other situations prescribed by law. However, the issue of energy poverty cannot be directly linked to age, disability or similar categories. Therefore, it is necessary to review the regulatory framework governing the energy sector.
With the amendments to the Latvian Energy Law that came into force on 16 February 2021, the term ‘energy poverty’ was formally defined in Latvian legislation. This inclusion was prompted by Latvia’s obligations as a Member State of the European Union under Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (hereinafter also referred to as Directive 2019/944), which was to be transposed by 31 December 2020. In addition, Directive (EU) 2018/2002 of 11 December 2018, amending Directive 2012/27/EU on energy efficiency (hereinafter Directive 2018/2002), was required to be transposed by 25 June 2020.
The preamble to Directive 2019/944 emphasises that Member States should take appropriate measures to protect vulnerable consumers and those affected by energy poverty, within the context of the internal market for electricity. These measures may vary depending on specific national circumstances.
This study aims to evaluate the legal framework established by the Latvian state to mitigate energy poverty, identify challenges based on case law and legal scholarship, and offer potential recommendations for improvement.
This research employs a qualitative legal methodology, combining doctrinal legal analysis with elements of comparative and interpretative approaches. The core objective is to evaluate the Latvian legal framework aimed at mitigating energy poverty, with particular attention to its alignment with EU directives and international human rights standards.
The study begins with a doctrinal analysis of national legislation, focusing primarily on the amendments to the Energy Law of Latvia that came into effect on 16 February 2021. Additional Latvian legal sources, such as the Constitution of the Republic of Latvia (Satversme), relevant Cabinet regulations and sector-specific guidelines, are also examined. This analysis aims to identify how the concept of energy poverty is defined, operationalised and addressed through legal norms.
This study also draws upon legal scholarship, including peer-reviewed articles, monographs and academic commentaries, to interpret the legal standards and to support the identification of theoretical and practical gaps in the existing regulatory framework.
Methodologically, this study adopts a qualitative legal research approach, combining doctrinal, comparative, and interpretative analyses. The doctrinal component examines the Latvian legal framework on energy poverty, with particular emphasis on the amendments to the Energy Law. Additional national legal sources—including the Constitution of the Republic of Latvia (Satversme), relevant Cabinet regulations, and sector-specific guidelines—are analysed to determine how the concept of energy poverty is defined, operationalised, and implemented.
The comparative element evaluates Latvia’s regulatory framework in light of the European Union’s legislative requirements, particularly Directive (EU) 2019/944 and Directive (EU) 2018/2002, as well as relevant international human rights instruments such as the Universal Declaration of Human Rights and the European Social Charter. This enables the identification of areas of alignment and divergence between Latvian legislation and supranational legal obligations.
The interpretative aspect draws on legal scholarship including peer-reviewed articles, monographs, and expert commentaries to contextualise the legal norms, assess their practical application, and highlight potential theoretical and implementation gaps. Through this combined methodology, the study provides a legal interpretation of how Latvia’s framework addresses energy poverty, identifies structural and conceptual deficiencies, and formulates recommendations for more effective protection of vulnerable groups within the energy sector.
Nowadays, in a democratic country, it is inconceivable that human activity in essential areas could exist outside the framework of human rights. They are an internationally recognised standard for the legal protection of human life. Economic and social rights are no less important than civil and political rights, as they ensure a dignified material existence for persons, which in turn is linked to civil liberties.
Human achievements in the field of technology provide greater opportunities to society, and it is important to be aware of their impact on the field of law. Recognising the right of every person to an adequate standard of living for themselves and their families, necessary food, clothing and housing, and the right to the continuous improvement of living conditions is mentioned (United Nations, 1966). The importance of science and technology is emphasised in relation to food production and storage (United Nations, 1966) as well as distribution methods, as this makes it possible to eradicate hunger. In general, countries recognise the right of everyone to enjoy the benefits of scientific progress and its practical applications (United Nations, 1966). Referring to technological achievements in international agreements, the need to ensure public access to new technologies by creating an appropriate legal framework is emphasised.
Modern human activity is unimaginable without appropriate technological solutions to ensure a full life. Practically, this would apply to all areas of life, including housing, which requires heating and electricity for various household appliances. As a result, energy not only gives an opportunity but also creates dependence on it.
The production and use of energy are regulated activities, intending to reduce its harmful impact on nature while ensuring its availability. This shows that, on the one hand, energy consumption and the negative impacts associated with its production are among the most pressing issues. The energy sector is the largest contributor to greenhouse gas pollution in Latvia, emitting 6.4 million tonnes of CO2 equivalent in 2022, or 63% of all pollution (Central Statistical Bureau, 2023). On the other hand, due to rising energy prices, energy efficiency of housing remains a very important issue. Over the last 5 years, only slightly more than a third (36.1%) of homes have undergone energy efficiency improvements, such as better thermal insulation, windows or heating systems. The importance of this issue stems from the population’s ability to pay, as rising costs force people to reduce their consumption or forego other essential services or goods. Latvia continues to experience a persistently high proportion of its population at risk of poverty or social exclusion. In 2023, this figure stood at 26.6%, compared to the EU average of 21.6%. The overall risk of poverty in Latvia was 21.6%, exceeding the EU average of 16.5%, with particularly severe rates among pensioners, reaching 41.4% (EU average—16%). Income inequality also remains a concern, especially among individuals with disabilities. In 2023, Latvia’s Gini coefficient was 34.2, significantly higher than the EU average of 30.2. Additionally, energy poverty represents a growing challenge: in 2025, an estimated 38.3% of Latvian households are considered at risk. Heating expenses account for a substantial share of low-income household expenditures, often exceeding 10%–15% of total income (Latvian Social Climate Fund, 2025). To balance the impact of both factors, laws and regulations are adopted that apply to the energy sector.
In 1998, the Energy Law was adopted in Latvia to balance the need for energy resources and the impact on the environment. Among the objectives mentioned in the law are the creation of an environment favourable to investment and the promotion of the friendly impact of the energy industry on the environment, and the use of environmentally friendly technologies. In the context of these objectives, it is important to highlight the role of the consumer, expressing the desire to ensure a continuous, secure and high-quality supply of energy, diversifying the types of fuel used, increasing the security of energy supply and improving energy distribution and supply (Energy Law, in the wording until 02.08.2000). It can be concluded that the law created a legal framework for energy supply security, establishing favourable conditions for its development and selecting more environmentally friendly technologies.
It is undeniable that the understanding of the energy sector in general and its regulation has changed since the adoption of the Energy Law. This was influenced by a number of aspects, but from a legal perspective, Latvia’s accession to the EU in 2004 should be highlighted, as it required the transformation of legal relations in line with EU standards, including in the energy sector.
In order to establish a legal framework for the opening of the electricity market that would meet the objectives of Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market for electricity and repealing Directive 96/92/EC, the Electricity Market Law was adopted, as the Energy Law links the functions of electricity trading and provision of network services (Abstract of the Draft Electricity Market Law, 2005). As can be seen from the objectives of laws and regulations, giving the consumer in the field of electricity the possibility to choose the electricity trader is a requirement of a common EU directive, which should be taken into account in the Latvian laws and regulations.
Comparing the regulatory frameworks of the Energy Law and the Electricity Market Law, it can be concluded that both include the definition of consumer interests. The Energy Law regulates the energy sector as a sector of the national economy (Energy Law, 1998), and one of the objectives mentioned in Section 3 of this Law is to provide the energy user with efficient, safe and qualitative energy supply in the quantity demanded and at justified prices. Recognising that electricity trade is a trade of goods in free circulation, the Electricity Market Law regulates the types of activities to be carried out on the electricity market. It should be noted that the latter law, despite the free market relations, has the provision of electricity in a safe and qualitative manner, in the most efficient possible way at justified prices to all energy users as one of its objectives (Electricity Market Law, 2005). Based on the above, it can be argued that in the conditions of a free electricity market, laws and regulations indicate the need for a secure and high-quality electricity supply at a reasonable price.
In conclusion, electricity trade has changed from a fully state-managed sector, where supply and trade were synonymous, to a free trade sector, where supply is separated from trade, giving every consumer the opportunity to buy electricity at a reasonable price.
Selling electricity at a reasonable price, which is the subject of an agreement, and ensuring a secure supply do not mean that everyone can buy the amount of electricity needed to maintain a standard of living compatible with human dignity (Energy Law, 1998). This should definitely be considered in relation to the financial capabilities of the consumer or buyer.
Assuming that a person cannot buy the goods or services they want or like, it can always be argued that they need to weigh their wants against their means. Such an approach to services that are vital to human life does not correspond to the ideas of a modern, socially responsible state, which Latvia is also considered to be.
As the Constitutional Court has recognised, human dignity as a fundamental right is inherent in every human being, regardless of any conditions. The principle of a socially responsible state based on human dignity implies the state’s duty to ensure a just social order, reducing the most significant social differences in society, promoting social inclusion and ensuring that every group of its population has the opportunity to live a life consistent with human dignity (Judgement in Case No. 2006-07-01).
It is recognised that Latvia is a socially responsible state, and this general principle derives from Article 1 of the Constitution and is recognised in Articles 107, 109, 111 and 112 of the Constitution and in the case law of the Constitutional Court. The goal of a socially responsible state is to reduce the most significant social differences in society and ensure an adequate standard of living for every group of its population, guaranteeing, as a minimum, basic survival for every person, including necessary food, clothing, shelter, medical care and basic education (Litvins, 2012). This means that, based on the satisfaction of specific needs, it is possible to obtain the minimum necessary for survival. From a legal perspective, access to social benefits is not only a legal principle but should also be included in written legal provisions, as it specifies a person’s opportunities in life and forms their subjective rights. Poverty as a phenomenon affects all areas of human life, leaving individuals to decide which goods or services to forego. It is a state in which an individual lacks the financial resources and necessities for a certain standard of living (Britannica, The Editors of Encyclopaedia, 2024). It is commonly understood as a multidimensional phenomenon, encompassing three main dimensions: health, education and living standards. The dimension of living standards is closely linked to energy poverty and is typically assessed through several key indicators, including access to cooking fuel, sanitation, drinking water, electricity, adequate housing and basic household assets (The Global Multidimensional Poverty Index, 2025). At the same time, looking at Latvian laws and regulations, there is no legal definition of poverty. Instead, the Ministry of Welfare acknowledges that the term ‘poverty’ is substituted in official discourse with the designations ‘needy person’ or ‘person with low income’ in Latvia (Description of the Situation, 2020). Notwithstanding the definition of poverty in general, the Energy Law contains the term ‘energy poverty’. In this regard, it is important to focus on the legal content of this concept.
The concept of energy poverty was included in the Energy Law in 2021 (Amendments to the Energy Law, 2021). Energy poverty is considered to be the inability of a household user to maintain an adequate temperature in their home or to use or pay for services provided by energy suppliers because of poor energy efficiency or because the payment for these services is a high proportion of the household income (Energy Law, 1998). As can be seen from the abstract of the draft law (Amendments to the Energy Law, 2020), the introduction of such a concept in the Energy Law follows from Directive 2019/944 and Directive 2018/2002. This means that the emergence of the concept of energy poverty in Latvian laws and regulations is conditional on Latvia’s status as a Member State of the European Union, which implies the country’s international obligations. At the same time, it indicates that the meaning and purpose of the concept should be viewed through the prism of EU policy and legislation.
Directive 2019/944 indicates that Member States should take the necessary measures to protect vulnerable and energy poor customers in the context of the internal market for electricity (Directive (EU) 2019/944, 2019). From a legal perspective, it is essential that the framework of essential services is clarified to include adequate warmth, cooling and lighting, and energy to power appliances to guarantee a decent standard of living and ensure citizens’ health (Directive (EU) 2019/944, 2019). The Directive also identifies three factors that contribute to energy poverty: (1) low income, (2) high expenditure on energy and (3) poor energy efficiency of housing (Directive (EU) 2019/944, 2019). Ensuring the necessary energy supply for vulnerable and energy-poor customers is recognised as a common objective. Accordingly, it can be concluded that the objective of the EU legal framework in this area is to define the causes of energy poverty and the results to be achieved, which should be covered by national frameworks at the Member State level.
Directive 2019/944 obliges each Member State to define the concept of vulnerable consumer, which may be with reference to energy poverty. The concept of vulnerable customers may include income levels, the share of energy expenditure of disposable income, the energy efficiency of homes, critical dependence on electrical equipment for health reasons, age or other criteria (Directive (EU) 2019/944, 2019). As it follows from the Directive, Latvia was obliged to define the concept of energy poverty by listing the possible criteria for its definition, addressing the causes—income level and structure, poor energy efficiency, and their impact on health, age and other criteria, including the dependence of living standard on the use of electrical appliances in daily life.
In planning a new framework and describing the legal situation, it is necessary to identify who might have a subjective right to support. When the concept of energy poverty was introduced in the Energy Law, a new chapter—Chapter XVII Energy Poverty—was added in addition to the definition of the concept. In this way, Latvia has met its obligations as a Member State and implemented EU Directive 2019/944.
In order to determine the actual impact of the introduced concept and framework on the defined problem, it is necessary to look at the meaning of the provisions and their relation to the legal subject. The Energy Law prescribes that a household affected by energy poverty is a household within the meaning of the Law on Social Services and Social Assistance which conforms to at least one of the following criteria: (1) it has been recognised as a needy or low-income household and receives a material support for covering the expenditures related to the use of housing; (2) it is renting a residential space or social apartment belonging to or leased by a local government in accordance with the Law on Assistance in Solving Apartment Matters or the Law on Social Apartments and Social Residential Houses. As can be seen from the quoted provision, the concept of energy poverty is related to the legal subject through the laws and regulations governing social support.
First of all, it should be noted that the Energy Law uses the concept of household expressis verbis in Article 120 with reference to the Law on Social Services and Social Assistance, where it is defined as several persons who are living in one household and are jointly covering expenses, or one person who is managing a household individually (Law on Social Services and Social Assistance, 2002). In the Energy Law, the concept of household is also used outside the scope of the concept under study, without a uniform explanation of the scope of household in this law.
Looking back, regarding the concept of household, Prof. Dr. oec. Margarita Dunska explained in 2011 that the term ‘household’ is used in statistics, demography and economics. In statistics, the term ‘household’ refers to several persons living in the same dwelling and sharing expenses, or one person living alone. In 2020, the concept was introduced in the field of social security, making it a legal concept with legal significance (Amendments to the Law on Social Services and Social Assistance, 2020).
Essentially, it can be argued that a household affected by energy poverty is a household that has already received or is receiving housing support, providing it with housing for use or covering a certain amount of expenses related to its use. In order to understand the energy poverty factors identified in Directive 2019/944—low income, high expenditure on energy, and poor energy efficiency of housing—on the identification of households affected by energy poverty, taking into account the reference in the Energy Law to social support in the field of housing, it is necessary to study the field. This would help to understand whether the introduction of the concept enables people to obtain support for the elimination of the poverty factors referred to in Directive 2019/944, or whether the existing support in the relevant field is sufficient for a household to be recognised as affected by energy poverty without other legal consequences.
On 19 June 2025, the Saeima adopted amendments to the Enerģētikas likums (Energy Law), specifically revising the definition of an ‘energy-poor household’ (enerģētiskās nabadzības skarta mājsaimniecība). The updated definition now directly references the criteria set forth in Article 3(2) of the Energoapgādes izmaksu valsts atbalsta likums (Energy Cost State Support Law), aligning national provisions for identifying energy-poor households with the statutory support mechanism.
This change not only refines the legal clarity around vulnerable consumers but also ensures consistency between the general energy framework and support eligibility rules. Furthermore, the amended Energy Law incorporates a direct reference to Directive (EU) 2024/1711 of the European Parliament and Council (13 June 2024), which modifies Directives 2018/2001 and 2019/944 to enhance the EU’s electricity market model (Directive (EU) 2024/1711). By explicitly embedding this Directive into national law, Latvia affirms its commitment to harmonising domestic energy-poverty policy with the EU’s evolving electricity market regulations.
On 1 July 2025, the Cabinet of Ministers approved the Latvian Social Climate Fund Plan for 2026–2032. This strategic policy document establishes measures to
improve energy efficiency and modernise the technical systems of multi-apartment buildings with high energy consumption; and
provide additional targeted assistance to households formally identified as energy-poor, particularly those most vulnerable to the implementation of ETS2, the EU Emissions Trading System for buildings, road transport and other sectors (Directive 2003/87/EC).
ETS2 is expected to begin in 2027, and the Social Climate Fund—designed under Regulation (EU) 2023/955—mobilises revenues from ETS allowances to finance both structural and direct support measures.
This national plan will enable Latvia to access EU cofinancing and deploy targeted interventions aimed at buffering low-income households from rising carbon and energy costs under the new ETS2 regime.
These legal and policy updates mark a significant strengthening of Latvia’s framework for addressing energy poverty, highlighting several key developments:
By synchronising the definitions in the Energy Law with the support eligibility enshrined in the Energy Cost State Support Law, Latvia ensures transparency and coherence in protecting energy-poor households.
The explicit reference to Directive (EU) 2024/1711 signals Latvia’s compliance with the EU’s latest electricity-market reforms, ensuring national law keeps pace with EU-level developments.
Approval of the Social Climate Fund Plan situates Latvia in a proactive position to mitigate social impacts related to ETS2. Located well before the official launch in 2027, this early preparation aligns with the EU requirement to submit national support strategies by June 2025.
These measures ensure that Latvia’s regulatory architecture remains resilient, socially inclusive and in harmony with EU reforms, thereby reinforcing protections for the most vulnerable as the electricity market liberalises and the Union transitions to a low-carbon future.
When analysing new forms of support, it is important to understand not only the amount of support but also the legal mechanism for receiving it, as this can determine the accessibility of a given service. This means that the integration of the concept of energy poverty into the existing social support in the field of housing needs to be assessed.
Latvia was previously described as a socially responsible state and has been recognised through laws and regulations that need to regulate the types of social services, including social and educational assistance, promoting social justice and social security, and to contribute to overcoming or alleviating specific difficulties in life, providing assistance and opportunities for self-help (Law on Social Security, 1995). Specifically, it recognises the right to a benefit to cover the expenses associated with ensuring a suitable apartment or to a relief from rental payments in accordance with law (Law on Social Security, 1995), and the right to assistance that corresponds with the person’s needs if they are unable to provide for themselves or overcome particular difficulties in life by their own efforts (Law on Social Security, 1995). Thus, the social security system is made up of a set of laws and regulations that should be viewed within the Latvian legal framework.
Recognising that the basic needs of a person include food, clothing, housing, health care and compulsory education, the purpose of social assistance is to provide material support to low-income households to ensure income at the level of the guaranteed minimum income threshold and cover expenses related to the use of housing, and also to provide support for covering certain expenses and in crisis situations (Law on Social Services and Social Assistance, 2002). One of the basic social assistance benefits is housing allowance—a material support for covering expenses related to the use of the housing. When calculating the amount of housing allowance, not only is the rental payment taken into account but also the fees for the services which are related to the use of residential premises, including the provision of thermal energy for heating and hot water, electricity, and water (Law on Social Services and Social Assistance, 2002). In addition to the housing benefit, measures to compensate for rising energy prices were introduced in the second half of 2021. Support for protected electricity consumers was increased for a low-income or needy household (individual), a family (individual) caring for a child with a disability, a person with a Group I disability or their guardian, as well as for a large family (three or more children). At the same time, a monthly allowance was approved for vaccinated seniors, and the state co-financing for the municipal housing benefit was increased. In January 2022, more extensive support measures were introduced with the entry into force of the Law on Measures to Reduce the Exceptional Increase in Energy Resource Prices. This law provided various compensatory measures for both individuals and legal entities over a 4-month period. The next set of compensatory measures for rising energy resource costs was approved in August 2022 through amendments to the Law on Measures to Reduce the Exceptional Increase in Energy Resource Prices. These amendments introduced more differentiated support tailored to various situations, covering the entire 2022/2023 heating season (Law on Measures for the Reduction of Exceptional Increase in Energy Resource Prices, 2022). These short-term support mechanisms clearly illustrate the existing dilemma in state policy—balancing the immediate need to support households, maintaining purchasing power and preventing vulnerable populations from falling into energy poverty, while simultaneously creating an illusory sense of stability. At the same time, there remains a critical need for long-term mobilisation to improve the situation, particularly through large-scale measures aimed at enhancing the energy efficiency of buildings and heating systems (Vancāne and Apinis 2023).
In order to ensure, inter alia, a more efficient exercise of state authority, it is permissible to derogate from the requirement that the legislator must decide all matters entirely on its own, authorising the Cabinet of Ministers to develop more detailed rules and technical norms necessary for the implementation of the law (Judgement in Case No. 2019-37-0103, 2020). As regards local governments, the Constitutional Court has recognised that the Legislator may transfer to the competence of local governments the decision on the matters which can be effectively resolved by knowing the conditions of the respective administrative territory and the needs of the population (Judgement in Case No. 2023-43-03, 2024).
The law may delegate specific tasks to public administration bodies and empower the executive authority to issue external laws and regulations to achieve the objectives set out in the law. In accordance with the authorisation of the Energy Law, the Cabinet of Ministers shall determine the procedure for calculating, granting and disbursing housing allowance and the minimum norms for calculating the amount of housing allowance by expenditure items. The local government may provide for more favourable conditions in relation to the norms of the expenditure items in the binding regulations (Law on Social Services and Social Assistance, 2002). Therefore, it can be concluded that the government has a duty to set minimum norms for expenditure items to be taken into account when granting support, while local governments, taking into account the conditions of the administrative territory and the needs of the population, may provide additional support or lower requirements, which overall create more favourable conditions compared to the minimum set by the government.
Further research will examine individual aspects related to electricity, gas and heating, as these items are most relevant to energy consumption and, consequently, to the subject of the study.
An assessment of regulations of the Cabinet of Ministers shows that the government has set an energy consumption norm or limited the amount of costs. Some examples could be mentioned here. When setting minimum norms, it is envisaged that expenditure on gas for households with gas cookers equals expenditure for 6 m3 per month for one person in the household and 3 m3 per month for each additional person in the household, plus expenditure for 3 m3 per month for each person in the household if water is heated using gas. In the case of property heated using gas, the cost is limited to EUR 4 per 1 m2 of the property 6 months per year (heating season) in addition to the above norms (Cabinet Regulation No. 809, 2020).
When calculating the amount of the allowance, expenditure on electricity takes into account costs based on meter readings, including system services, the mandatory procurement component (OIK) and value added tax (VAT), but not more than the cost of 100 kWh per month for a single-person household and the cost of 30 kWh per month for each additional person in the household, but not more than the cost of 200 kWh per month for a multi-person household. Similar to the minimum gas consumption norms, a separate limit is set if the property has a fixed electric stove, if water is heated using electricity, or if the property is heated using electricity.
Separate consideration is given to expenditure on individual heating in a property that is not included in the above categories, up to a maximum of EUR 12 per 1 m2 of dwelling space per calendar year.
Thus, an assessment of the purposes of the housing allowance and the minimum norms set for its calculation shows that its purpose is to provide material support to the population, based on the status of a needy or low-income household, for a limited consumption based on the satisfaction of basic needs. This type of support is aimed at addressing the problem of low income of household users in Directive 2019/944, as it constitutes an additional financial source for the user.
If the housing allowance is assessed in the context of the definition provided in Article 1(101) of the Energy Law, it can be argued that there is a lack of connection with the assessment of the corresponding temperature and energy efficiency in the specific property. On the other hand, the regulation of the housing allowance, as opposed to the definition of energy poverty included in the Energy Law, expressis verbis takes into account electricity consumption for purposes other than heating.
An analysis of the services of the three largest municipalities in Latvia (Riga City Council Binding Regulations No, 2023) in terms of population on the national public services portal www. latvija.lv, it can be concluded that local governments have not provided for more favourable conditions for calculating the housing allowance than those laid down in the regulations of the Cabinet of Ministers.
In the field of social law, it is impossible to avoid the fact that the actual situation of the individual in each specific case may differ from the presumed situation. The legislator, exercising its freedom of action, is entitled to be guided by reasonable perceptions of social reality based on previous experience.
Having assessed the purposes of the housing allowance and the minimum norms set for its calculation, it can be concluded that its purpose is to provide material support to the population, based on the status of a needy or low-income household, for a limited consumption based on the satisfaction of basic needs in a presumed situation. This type of support is aimed at reducing the low income factor identified in Directive 2019/944, but there is no connection with the assessment of the actual conditions in the household, which are reflected in adequate heating and cooling, lighting and the energy required to operate appliances, which ensures a decent standard of living and the health of the population, as included in recital 59 thereof and the definition of energy poverty included in the Energy Law.
As previously described, Article 120 of the Energy Law defines one of the criteria for energy poverty as renting a residential space belonging to a local government in accordance with the Law on Assistance in Solving Apartment Matters or the Law on Social Apartments and Social Residential Houses. This means that it is necessary to ensure that the aforementioned regulations are compatible with the objectives set out in Directive 2019/944.
The changing legal framework affects legal relationships that fall outside the defined boundaries. The Law on Social Apartments and Social Residential Houses entered into force on 2 July 1997 and lost validity on 15 January 2022. As can be seen, the aforementioned law was in force when the concept of energy poverty was included in the Energy Law, but it later lost its force. However, it was not excluded from the description of criteria in Article 120 and does not correspond to the current situation. For these reasons, the provisions of the Law on Social Apartments and Social Residential Houses will not be considered in depth.
The objectives of laws and regulations indicate the limits of their scope and the nature of the legal relations they regulate. One of the objectives of the Law on Assistance in Solving Apartment Matters is to determine which persons are entitled to assistance in solving apartment matters (Law on Assistance in Solving Apartment Matters, 2021). On the one hand, it is important to understand the types of assistance available, which include the rental of residential spaces owned or leased by a local government, the rental of a social apartment, the renovation of a residential space, assistance with the renovation of a residential house, etc. (Law on Assistance in Solving Apartment Matters, 2021). On the other hand, in the context of the issue under examination, it is necessary to understand to what extent the assistance in question is related to Directive 2019/944 and the concept of energy poverty. This points to the need to analyse the criteria for determining who is eligible for assistance.
Given the possibility that the local government may not have enough housing to allocate to residents as assistance, it is understandable that a legal framework is needed to ensure a fair procedure for receiving support. In order to create a proper register of persons to whom the local government is entitled to rent out residential space, three groups of recipients are distinguished: (1) immediate assistance shall be provided (as a result of exceptional circumstances, the previous dwelling is unusable and this was not dependent on the user, e.g. due to a natural disaster or other catastrophe); (2) to be provided with a residential space first (certain categories of the population, directly linked to low-income status); (3) to be provided with a residential space according to the general procedures (the right of the local government to determine categories in addition to the above). When comparing all three categories mentioned above, it should be emphasised that low-income residents are to be provided with a residential space first, and this regulation is binding on local governments. Local governments may determine additional categories of residents who are entitled to request this kind of assistance, after the needs of the categories of residents specified by law have been met.
A social apartment is an apartment owned by a local government (also a separate residential space with auxiliary rooms in common use) which is not located in a social residential house and for which the local government has determined the status of a social apartment, as well as an apartment in a social residential house owned by the local government, and the local government is entitled to rent it to low-income persons who meet certain criteria (Law on Assistance in Solving Apartment Matters, 2021).
In the context of the concept of energy poverty, it is important to clarify the requirements for the energy efficiency of rented premises. When determining the requirements that must be met by residential spaces for rent, it is recognised that a residential space suitable for living is a lighted, heated space, suitable for long-term human habitation and for the storage of household items, as well as being located in a residential building that complies with the requirements set out in Articles 9(1), (2) and (4) of the Construction Law. After considering Article 9 of the Construction Law, it can be concluded that the requirements do not cover energy efficiency (Construction Law, 2014).
Overall, it can be concluded that the local government has a duty to take care of people with low income, applying this as one of the criteria for renting residential spaces, but not every person who is entitled to request an apartment for rent from the local government is recognised as being affected by energy poverty. It should be emphasised that when renting out a residential space and setting minimum requirements for mechanical strength and stability, safety of use and accessibility, as described above, a situation may arise that was intended to be prevented by introducing the concept of energy poverty. This can manifest in poor energy efficiency of the space, resulting in the inability to maintain an adequate temperature, insufficient lighting, inability to prepare hot meals, etc.
The local government may assist the owner(s) of the residential house or the apartments by providing funding for various purposes, including energy efficiency measures in the residential house, and the amount of assistance is determined by the local government in its binding regulations (Construction Law, 2014). A study of municipal regulations reveals that Riga has established support for the development of an energy certificate, technical inspection report and technical design for energy efficiency measures, and hazard prevention in a multi-apartment residential house (Riga City Council Binding Regulations No. 2024) if the building was commissioned before 2001 or if, regardless of the year of commissioning, the reference level of heating consumption (kWh/m2) is class F.1 The local government also co-finances the preparation of construction documentation for energy efficiency insulation of buildings with three or more apartments and the construction work carried out. Both activities are aimed at improving the energy efficiency of buildings, without linking this to residents’ income or ability to pay for energy services; therefore, they lack a direct link to the objectives of implementing the energy poverty concept, recognising their positive and preventive impact on improving people’s ability to pay for services. The Riga Municipality offers consultations on the renovation of multi-apartment buildings through the Riga Energy Efficiency Information Centre. Within the framework of specific projects (e.g. REVERTER in Riga, PowerPoor and WELLBASED in Jelgava), municipalities make efforts to raise awareness about energy poverty and promote measures to mitigate it. Although municipal support in the housing sector varies depending on available resources and the level of awareness regarding energy poverty, increasing attention is being paid to individual lifestyle factors. These efforts focus on promoting behavioural change at the individual level, encouraging more conscious energy consumption and the adoption of sustainable everyday practices. Simultaneously, growing emphasis is placed on social and community networks, highlighting the importance of establishing communities of knowledge exchange and peer learning. Such initiatives aim to enhance mutual support and foster collective engagement in tackling energy poverty and improving energy efficiency on a broader scale (Tackling Energy Poverty, 2025).
Although energy production and use are regulated activities aimed at reducing their harmful impact on the environment, electricity trading takes place in free market conditions where households can choose their own supplier. The legal framework for these processes is provided by the Energy Law and the Electricity Market Law, which were adopted to implement the requirements of Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market for electricity and repealing Directive 96/92/EC.
In accordance with the requirements of Directive 2019/944, the concept of households affected by energy poverty has been implemented in the Energy Law establishing a definition of energy poverty and setting out criteria for identifying affected households linked to the concept of household in the Law on Social Services and Social Assistance and social support measures in the field of housing.
The introduction of the concept of households affected by energy poverty in the Energy Law lacks a connection with the receipt of support, reducing the impact of the factors that contribute to it, as the concept is linked to the existing housing allowance and the support tools provided for in the Law on Assistance in Solving Apartment Matters.
The wording of Article 120(2) of the Energy Law needs to be updated as the Law on Assistance in Solving Apartment Matters is no longer in force.
The legal framework for material support to cover expenses related to the use of housing in the form of housing allowance provides for a uniform presumed norm to be used in calculations without an assessment of individual needs beyond the specified limit, ensuring the ability to maintain the necessary temperature in the property, prepare meals or ensure lighting.
Housing allocated by the local government based on the Law on Assistance in Solving Apartment Matters must meet minimum technical requirements, excluding energy efficiency requirements, thus ignoring one of the factors included in the concept of energy poverty—poor energy efficiency, resulting in fees to merchants for energy supply services forming a high proportion of household income.
Larger Latvian municipal support programmes for energy efficiency improvement are defined in the local government’s binding regulations, and the relevant support is beyond the assessment of household income, thus not having a direct impact on households affected by energy poverty, as the support is provided generally to all households in multi-apartment buildings.