Grapevine

Who's energy poor in the EU? It's more complex than it seems

Depending on the indicator selected, between 8% and 16% of the EU population is facing energy poverty, while most of the energy poor are not income poor, according to a comprehensive analysis of the main energy poverty indicators.

Amidst the EU's push for a fair green transition, and further reinforced by the uncertainties of the energy market, the issue of energy poverty has come to the forefront and become a critical policy priority. Energy poverty can be measured in different ways, but its measurement is a challenge for policy formulation and action to address it.

A JRC study investigated four primary energy poverty indicators to understand the EU-wide distribution and socio-economic profiles of "energy poor." The findings underline the usefulness of relying on a battery of various indicators to provide a picture of energy poverty.

The Social Climate Fund regulation and the revised Energy Efficiency Directive define energy poverty as a household's lack of access to essential energy services, such as heating, hot water, cooling, lighting and energy to power appliances.

According to the Commission's Recommendation on Energy Poverty, it is a multidimensional phenomenon driven by three underlying causes, namely, high-energy expenditures in proportion to household budget, general low levels of income and low energy performance of buildings.