Calculating household energy costs compensation: Project EIKIS
The surge in energy prices has not only strained national economies but also placed a heavy financial burden on citizens, particularly those in vulnerable economic positions. As a result, governments are compelled to devise effective strategies to support their citizens, ensuring that households can manage their energy expenses without facing undue hardship.
This scenario calls for innovative solutions and targeted interventions, such as subsidies and financial assistance programs, to mitigate the impact of escalating energy costs on the population. We have developed an innovative system known as EIKIS, designed to administer support for household energy costs. This system targets households with low and medium-low income levels, particularly during periods when energy resource prices are exceptionally high. The development and subsequent administration of EIKIS were entrusted to the Construction State Control Bureau.
The algorithm
The effectiveness of EIKIS is based on targeted support distribution, guided by the income levels of households. This approach was deemed the most efficient following an evaluation of support provided during the 2022/2023 heating season. EIKIS operates by analyzing data without human intervention, calculating the average income of households based on the declared, registered, or specified residence and income of individuals. This system simplifies the process for beneficiaries, as it eliminates the need for additional document submissions in most cases.
EIKIS represents a significant step towards the implementation of a targeted support system in Latvia, not just for the rising costs of energy resources but also potentially for other forms of support. It has been designed to utilize available data for various support allocations. Director of WNTR Tech has expressed satisfaction with the progress in automating such processes, highlighting the smooth collaboration with state institutions and service providers, which will likely ensure a smooth implementation of the system."
Feedback on the project
In a span of six months, our collaborative effort resulted in the development of a system that seamlessly integrated four state-level information systems, harmonized data, and devised a sophisticated mathematical model for automated allowance processing. Initially seeming impossible, the high motivation shared by relevant key stakeholders and executing team became the driving force behind our project's success. The structured organization of our team, adept utilization of tools not only in development but also in effective project management, risk analysis, and leveraging prior experience in integrations played a fundamental role in achieving our project goals.
Svetlana Mjakuškina
Director of the State Construction Control Bureau of Latvia
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