UNDP impact analysis: Heating compensation programme contributed to reducing energy poverty
November 14, 2025
Photo: UNDP Moldova
On 13 November 2025, at a policy dialogue hosted by the Ministry of Labor and Social Protection with development partners, the results of the previous heating season and preparations for the new cold season 2025-2026 were presented.
UNDP presented the impact analysis of the support provided to the population. The analysis was carried out with the support of the Italian Government.
The study showed that, over the last three heating seasons, the compensation programme has contributed to reducing monetary poverty by 3.9 percentage points and energy poverty by 10.6 percentage points. The impact varies depending on the locality: in the municipalities of Chișinău and Bălți, where gas heating and district heating prevail, the level of energy poverty has been reduced by 21.2%.
Compensation has remained an important support for low-income groups. Among the beneficiaries of the previous heating season were pensioners (34%), young people (25%), and people with severe disabilities (1%).
In addition to the direct impact on households, participants at the meeting also discussed the stabilizing role of the programme and the coordinated contribution of the government and donors.
Another key topic was the importance of the unique information system used by the programme. It ensures fast and accurate data processing, automatic verification of the information declared, and prevention of false declarations. At the same time, the system allows for the individual calculation of compensation for each household, depending on the actual situation and the budgetary availability of the program.
"I am grateful to our partners, who for the fourth consecutive cold season are standing by us and the citizens of the Republic of Moldova to help us overcome the energy crisis with dignity and cope with heating costs. This support allows us to significantly reduce the poverty rate and provide the necessary support to the most energy-vulnerable families and households. At the same time, the government is making great efforts to improve the energy efficiency of institutions and apartment buildings in the country in order to build a more sustainable energy system," said Natalia Plugaru, Minister of Labor and Social Protection.
Daniela Gasparikova, UNDP Resident Representative to the Republic of Moldova, mentioned: “The Energy Vulnerability Reduction Fund is a strong example of how Moldova has transformed an emergency response into a long-term policy instrument that delivers measurable results for people. Since its creation in 2022, the Fund has been evolving from an emergency tool into a structured, transparent, and fiscally balanced mechanism. The optimization of compensations, improved targeting, and increasing share of government financing reflect both efficiency and strengthened national ownership. Beyond immediate relief, the Fund has been contributing to the digital transformation of Moldova’s social protection system by laying the groundwork for the eSocial platform – a nexus for managing benefits and services within a single, interoperable environment, currently under development.”
Participants at the event highlighted the importance of investing in energy efficiency, noting that such investments are essential for reducing long-term vulnerability. Data collected through the Energy Vulnerability Reduction Fund can guide the planning of these investments and support the programs that UNDP and development partners are developing together with the Ministry of Energy and the National Center for Sustainable Energy, including initiatives aimed at the energy modernization of homes and public institutions.
For the fourth consecutive season, UNDP is supporting the continued development of the registration platform and the Energy Vulnerability Information System, one of the largest information systems in the country, for targeted and equitable assistance. At the same time, the call center and strategic communication activities are also supported. In previous years, UNDP has facilitated the mobilization of US$62 million for the Energy Vulnerability Reduction Fund from Sweden, Norway, Denmark, Italy, Switzerland, Poland.
The Energy Vulnerability Reduction Fund was created in 2022 by the Moldovan government with the support of the European Union, Slovakia and UNDP and has been continuously updated and improved since then with the support of the Government of Italy.