Energy poverty in the EU is a complex issue affecting between 8% and 16% of the population. Contrary to popular belief, many energy-poor individuals are not income-poor. Various indicators reveal disparities across countries, with factors like education and employment impacting the risk of energy poverty. Tailored policy responses are crucial, considering the diverse socio-economic profiles of the energy poor. Monitoring energy poverty is essential for inclusive policymaking. Learn more about the EU’s battle against energy poverty here and how it affects social and economic participation here.
Understanding Energy Poverty Indicators
Expenditure-based and consensual approaches are used to measure energy poverty Indeed, the JRC study underscores the value of using several indicators to obtain a more complete picture. Indicators of the ravages are scarcely observed or overlap little, resulting in different classifications of energy poverty. Energy poverty is caused by high energy expenditures, low-income levels, and poor building energy performance, among other things. This multi-faceted issue requires policies that are tailored to it.
The Socio-Economic Effects of Energy Poverty
Such factors as education and employment status appear to be determining the risk of energy poverty (Dellink et al. 2017). Energy poverty also often hits middle-income households. This shows that there is no one-size-fits-all approach and policy interventions must be rooted in the national context of each EU country. Redistribution focusing exclusively on income-support policies is necessary, but it is insufficient to eliminate energy poverty; other interventions, such as price caps, and less discussed control measures parallel to this like energy efficiency improvements and behavioral change also seem essential.
The Road to Combating Energy Poverty
The problems of energy poverty can have a direct impact on health, and limit participation in social and economic life. It is important to monitor energy poverty for a more inclusive policy. The EU can move a step closer to addressing this challenge with a framework which captures a range of socio-economic profiles among the energy poor and supports targeted policies. To address energy poverty effectively a more nuanced and multi-dimensional response is required, ranging from income-support measures to structural interventions.
