This paper describes the current energy situation in Central and Eastern Europe (CEE). Energy consumption patterns and energy pricing policies in the region are discussed. Changes in energy demand in the CEE countries during the last three years and the impact on emissions of atmospheric pollutants and sulphur deposition are analysed. An overview of two sets of energy projections is presented. The ‘official’ projections are compared with the ‘alternative’ ones, which assume radical changes in energy consumption arising from economic restructuring. Finally, the most important common elements of energy policies formulated by the governments of CEE countries are discussed.