Survey: 5% of Estonians Fear They Won't Be Able to Pay Heating Bills This Winter
A survey commissioned by Citadele bank shows that 32% of respondents in Estonia will either likely be unable to pay heating bills or will have to cut essential spending. The figure is 27% in Latvia and 26% in Lithuania.
In Estonia, 5% of residents believe they will most likely be unable to pay their heating bills this season, while another 27% expect to manage only if they cut other important everyday spending, such as on food, medicine or medical services. This follows from a survey by the research company Norstat, commissioned by Citadele bank. In each Baltic country, 1,000 people were surveyed.
Comparison with Latvia and Lithuania
In total, 32% of Estonian respondents will likely either fail to pay heating bills or have to cut essential expenses. In Latvia the figure is 27%, and in Lithuania 26%. Those who expect to pay heating bills without difficulty make up 26% in Estonia, 28% in Latvia and 35% in Lithuania.
The bank's comment
Edvard Rebane, head of retail banking for the Baltic states at Citadele, said budgeting should not be based on an average month. In his view, the main problem is the most expensive month of winter, most often January. If heating and electricity bills, winter clothing, health costs, car repairs and possibly a changed loan payment all coincide, a household budget can come under heavy strain. He said households should ideally have a financial cushion equal to several large utility bills before the heating season starts, and if they have none, they should begin with a more modest goal.
Price increases
According to September data from Statistics Estonia, housing-related prices rose by 7.4% over the year. Electricity became 6.1% more expensive, network gas 44.5% and wood fuel 10.6%. Autumn energy market reviews indicate that winter electricity prices are affected by weather, gas prices, renewable energy output and links to the Nordic market.
Mortgage and leasing payments also weigh on many family budgets. In early October the six-month Euribor stood at almost 3%. Those whose mortgage interest rate will change in the coming months could face both a larger utility bill and a higher loan payment during the heating season.
