www.fuelpoverty.eu

@fuelpoverty_eu

Energy Poverty in the EU

Policy Brief, June 2013

Harriet Thomson and Carolyn Snell

Summary Our research shows that energy poverty is prevalent across Europe, yet only three Member States have defined the issue. We argue that energy poverty should be coherently addressed in all energy policies, particularly via the implementation of a pan-EU definition of energy poverty which could be adapted for use at the Member State level.

Energy poverty, or fuel poverty, is a phenomenon whereby a household struggles to “afford adequate services…clearly demonstrated when the home is cold or fuel debts accumulate” [1]. As depicted in Figure 1, energy poverty is caused by an interaction between high energy bills, low income and poor energy efficiency, in addition to supplementary determinants such as housing tenure and quality of energy supply.

Consequences • Damp and mouldy living conditions • An increased risk of heart disease and strokes • School absences due to worsened asthma [2] • Reduced food intake - “heat or eat” • Dangerous coping strategies such as fuel disconnection

High energy bills

Poor energy efficiency

Low income

Figure 1: Causes of energy poverty

What is energy poverty?

Energy Poverty in the EU

www.fuelpoverty.eu

@fuelpoverty_eu

Measuring energy poverty Currently, the EU Statistics on Income and Living Conditions are the only standardised data available to measure pan-European energy poverty. Using EU SILC data, we have found that issues of fuel poverty exist across the EU [3], particularly in Central , Eastern and Southern Europe. • In 2011, 9.8% of households in EU27 and 15.8% of households in

the 12 new Member States could not afford to heat their home adequately (EU SILC 2011).

• 8.8% of EU27 households and 17.1% of households in the 12 new Member States were in arrears on their utility bills (EU SILC 2011).

We are now working to create a revised composite index of EU fuel poverty that controls for variation in climate using heating and cooling degree days. E-mail hrt500@york.ac.uk for further details.

EU policy The European Commission has so far failed to recognise energy poverty in a meaningful way, despite pressure from the European Parliament [4], European Economic and Social Committee [5] and others. Given that EU energy policies in other domains, such as climate change, have the potential to influence energy poverty rates, energy poverty objectives should be integrated in all energy policies. Establishing a definition at the EC level would ensure energy poverty is recognised as a policy issue.

References [1] Boardman, B. (2010) Liberalisation and fuel poverty. In: Rutledge, I. and Wright, P., ed. 2010. UK Energy Policy and the End of Market Fundamentalism. Oxford. Ch. 9 [2] Free, S. et al (2010) More effective home heating reduces school absences for children with asthma. Journal of Epidemiology and Community Health, 64: 379-386 [3] Thomson, H. and Snell, C. (2013). Quantifying the prevalence of fuel poverty across the European Union. Energy Policy, 52: 563-572. [4] European Parliament resolution of 19 June 2008 on Towards a European Charter on the Rights of Energy Consumers (2008/2006(INI)) [5] Opinion of the European Economic and Social Committee on ‘Energy poverty in the context of liberalisation and the economic crisis’ (exploratory opinion) (2011/C 44/09)