Introduction to the Energy Poverty Advisory Hub Manuals
Energy poverty is increasingly becoming a tangible reality across the European Union (EU), where many households struggle to adequately heat or cool their homes or to pay their energy bills. The ongoing and inevitable transition of our energy systems affects all levels of society, making it essential to increasingly take vulnerable groups into account and support those with lower resilience, thereby ensuring that all European citizens can benefit from the energy transition.
These texts form a series of practical guides for local governments and professionals aimed at ensuring that the social dimensions of the local energy transition are addressed effectively. This series consists of the present introduction (published here) and three thematic handbooks focusing on the identified phases and intended for local governments seeking to tackle energy poverty. These latter handbooks are expected to be published in 2023.
The three identified phases are:
1) Assessing energy poverty at the local level (Diagnosis).
2) Developing a documented plan (Planning).
3) Implementing a high-impact energy poverty project (Implementation).
This introduction sets out the common background for the three handbooks. More specifically, it presents the concept of energy poverty and the different approaches that can be useful for gaining an overall picture of energy poverty in the local context, as well as an initial introduction to the methodology for addressing energy poverty. Each handbook focuses on one of the three main phases and provides additional practical information and specific tools to be applied. The handbooks have been designed based on experiences and data collected over time, draw inspiration from different geographical contexts, and are supported by additional material developed by the EU Energy Poverty Advisory Hub (EPAH).
Although local energy poverty realities differ from one place to another, the practical steps detailed in the handbooks are intended to provide a comprehensive framework that can be applied across a range of geographical, cultural and economic contexts. The core methodology can be adapted to each specific context so that the proposed actions can help mitigate existing energy poverty and/or prevent it from increasing in municipalities that have already taken their first steps towards the energy transition.
1.- Energy poverty at the local level
Energy poverty is a complex and multifaceted challenge. It is commonly defined as the inability of households to meet their energy needs and is caused by a combination of multiple factors. Since there can be many causes of energy poverty, there is no single type or single underlying cause, meaning that its nature may vary even within the same local area. It may involve a situation of recurrent energy disconnections over long periods, resulting in a complete lack of access to energy, but it can also take the form of circumstances in which households are unable to adequately heat or cool their homes or access other energy services necessary for daily life.
Energy poverty occurs at the household level, making it difficult to properly identify and quantify its dispersed effects. To facilitate understanding, it can be viewed as a combination of contextual and personal factors.
Contextual factors refer to geographical location, climate, housing type, the heating and cooling equipment available, or broader geopolitical factors affecting energy prices. Personal factors refer to age, health status or household composition, as well as other socioeconomic elements that may exacerbate the situation.
The effects of energy poverty are also wide-ranging. There are consequences for people’s health and well-being. For example, extreme indoor temperatures are associated with the exacerbation of respiratory and cardiovascular diseases, heatstroke, and excess deaths due to cold or heat. In situations of energy poverty, children may experience particularly poor educational outcomes or higher levels of school absenteeism. They may also be more likely to develop illnesses associated with early exposure to low temperatures and experience lower levels of social and emotional well-being. Energy poverty is also interconnected with climate change and other environmental challenges.
Addressing energy poverty could generate multiple benefits, including greater indoor comfort and personal well-being, reduced public spending on healthcare, higher levels of educational attainment, economic development, and lower carbon emissions.
The factors influencing energy poverty and its impacts are particularly visible at the household level. For this reason, local governments are the institutions best placed to establish a connection with citizens, which is essential today if this socio-technical priority is to be addressed effectively.
So, how do we begin to tackle this complex and growing challenge? Step by step.
Like the pieces of a puzzle, each element helps to build a broader picture. In the following chapters, we will present three different perspectives highlighting specific aspects of energy poverty. First, we will introduce the main causes of energy poverty; then, we will examine the multifaceted concept of vulnerability, focusing on human and temporal factors; and finally, we will look at the types of information on energy poverty that can contribute to the diagnosis phase.
1.1 – Three main causes of energy poverty
The complexity of the causes of energy poverty requires an in-depth, nuanced and highly detailed examination of the issue. However, to better understand this challenge, it is possible to focus on a simplified approach based on the three most commonly identified causes: low income levels, low household energy efficiency and poor building energy performance, and, finally, very high energy prices.
Low income is directly linked to energy poverty, but poor building energy performance, the types of fuels used, and the energy efficiency of household appliances and equipment also play an important role. Poor-quality housing and appliances affect the amount of energy required to ensure a comfortable and healthy standard of living for the household. People living in energy-inefficient homes need to use more energy to maintain the same level of thermal comfort. In addition, residents may often have limited options for improving the energy efficiency of their homes, particularly when they live in rented properties or can only afford to own or purchase low-quality housing due to the combination of high housing prices and low incomes.
The impact of low income on energy poverty is clear and shows that one of the main causes of energy poverty is poverty in financial terms. Low income may result from low wages, job insecurity, unemployment, inadequate social protection, or a combination of these factors. In this regard, the inherent vulnerability associated with single-parent households, disability, or old age is often observed.
High energy prices clearly affect people’s ability to access sufficient energy to ensure their well-being. Household energy expenditure is linked to specific needs, which particularly affects vulnerable people with additional needs, as they are less resilient to price fluctuations. Ultimately, energy prices are influenced by geopolitical and economic factors, as well as by climate change policies and measures.
The way these main causes interconnect varies considerably from one context to another, even at very small spatial scales, sometimes within the same city, neighbourhood or building. Moreover, these causes are clearly influenced by broader socio-political and technical systems, as well as by natural events, as already mentioned in the previous paragraph. Depending on the geographical context, certain factors may play a more decisive role and make the overall vulnerability of the population more visible, therefore requiring more urgent attention and a more immediate response. These three main causes are particularly useful when identifying the drivers of energy poverty or the factors behind increased vulnerability among European households.
To illustrate this with a concrete example, we could consider a situation in which a person loses their job. This results in a reduction in household income and, subsequently, a reduction in expenditure, including energy-related spending. In this case, energy poverty has been caused (or aggravated) by the loss of employment and could be overcome if the person finds a new job.
1.2 – Vulnerability factors
Households and families are vulnerable to energy poverty in different ways. Vulnerability is situational and may be determined by many factors, both internal and external, which often combine and interact in ways that are not always intuitive. To address this issue, five broad areas of vulnerability are presented below to help us understand which factors can make people more vulnerable to energy poverty. These areas can also serve as a guide for identifying how energy poverty is distributed among the population. The broad areas are not exhaustive, and any additional local factors should also be taken into account when developing actions to address energy poverty.
- Socio-demographic factors: These refer to groups of people who are at greater risk of energy poverty. This may include, for example, people receiving social benefits, social housing tenants, people living in rented accommodation, people with low levels of education, or ethnic minorities.
- Household composition: This refers to household types associated with a higher risk of energy poverty. These may include single-parent families, retired people, households with people with disabilities, or young students living in rented accommodation.
- Health: This refers to households at risk of energy poverty due to health-related factors. Examples include people with illnesses requiring special care, or people with cardiovascular or respiratory diseases, as well as other conditions that weaken the immune system.
- Energy literacy: This refers to people who are unable to take advantage of technological, economic or regulatory developments related to the energy transition. This may result from a lack of awareness of the issue or limited knowledge of household energy matters. It also includes a lack of financial opportunities and inadequate household energy planning.
- Cultural factors: This refers to people whose cultural context affects their perception of energy poverty and influences their behaviour in ways that make the issue more difficult to address. For example, people may underestimate the problem due to a long-standing habituation to cold conditions or may have a historical and contextual preference for low-efficiency equipment.
In addition to the vulnerability factors described above, other elements may contribute to an increased risk of energy poverty, such as the type of area in which people live. Energy poverty may differ between rural and urban areas, and also depending on whether the vulnerable household owns or rents its home.
These factors frequently occur and are addressed at the local level. However, despite being a global challenge, climate change is also a major vulnerability factor. Extreme weather events, such as heatwaves and floods, pose a considerable risk to everyone, but they particularly affect the least resilient members of the population.
All these factors should always be considered as changing over time. People’s social circumstances change throughout their lives, whether as a result of personal choices or external factors, and so do their level of vulnerability and their risk of falling into energy poverty.
1.3 – Types of information on energy poverty
Energy poverty is not always easy to identify at the local level. The issue is often sensitive for those affected, and thorough research and cross-referencing of information are necessary in order to develop a local energy poverty diagnosis. Broadly speaking, information can be divided into two general categories or types:
‣ Measurable energy poverty – objective information
‣ Perceived energy poverty – subjective information
There is already a large amount of relevant and accessible information available for analysis, but this information is rarely analysed as a whole. For this reason, it is essential to try to compare and combine social and technical information.
Measurable energy poverty can be identified by collecting and combining quantifiable information such as national or regional statistics on energy consumption, energy prices, income levels, building energy performance and efficiency, household electricity consumption based on measured data, or energy expenditure from energy bills.
With some exceptions, this information is considered impartial and is therefore classified as objective information. When combined, these data provide numerical information that directly answers questions such as: How often? How many? How much?
Perceived energy poverty refers to more intangible and personal subjective assessments, such as thermal comfort and quality of life in your municipality. For example, perceived thermal comfort may differ from one person to another, even when the thermometer shows the same temperature. A given temperature may feel comfortable to some people, while others may find it unpleasant.
Perceived energy poverty is therefore a different type of energy poverty that can be identified through households’ lived experiences, using qualitative methods such as observations, audits and interviews. This information is highly subjective and mainly answers questions beginning with Why?
It is possible to use the two types of data separately, but doing so may mean losing information that can often be revealed by considering both measurable and perceived energy poverty. A concrete example could be an unusually low level of energy consumption for heating a home, which may be considered a form of hidden energy poverty. This information alone is not sufficient to determine the presence of energy poverty. The reduction may be due to improved thermal insulation, personal preferences for lower indoor temperatures, habituation to uncomfortable temperatures, or because the household may be forced to choose between heating and eating.
2.- Planning actions to address energy poverty – a circular methodology
Action planning often follows a circular approach that progresses as we improve a given situation through new supporting activities. Energy poverty is no exception. A local diagnosis is the ideal starting point when designing actions to address energy poverty, as it can provide an understanding of the current local situation. This information can then be used to develop a Local Social Climate Plan, in which specific actions are identified, planned and prepared for implementation. Implementation is followed by impact assessment and monitoring, which in turn lead to a new round of analysis as part of an updated diagnosis. Collecting this information closes the loop and marks the beginning of a new, hopefully improved, cycle of action, and so on.
The three phases are key to successfully addressing energy poverty at the local level and form the central focus of the three handbooks in this trilogy. Each handbook examines one phase in detail and presents relevant practical steps and inspiring examples to follow. Each municipality is at a different stage, so a given municipality may already have completed some of the steps and be ready to move on to a more advanced stage. The handbooks serve as a checklist to ensure that all key aspects of the three phases are covered.
2.1 – Diagnosis
Diagnosis is the first phase in the process of designing local energy poverty initiatives. Overall, it involves refining the understanding of the issue and setting the stage for action planning. It includes identifying people experiencing energy poverty, assessing the level of vulnerability they face, mapping the stakeholder support network, or updating the diagnosis based on impact assessments of an already implemented project.
Indicators and data are the cornerstone of this process. The diagnosis phase is inevitably shaped by the data available and the indicators selected for each municipality. Choosing different approaches can generate a wider range of insights, so it is important to carefully decide how this phase will be used to initiate the process. Different approaches may also require different levels of resources. It is therefore always important to keep the overall and final objective in mind and to carefully balance the resources invested against the results to be achieved.
It is also an important exercise for gaining a better understanding of the factors and behaviours that characterise vulnerable groups within each municipality. The search for relevant information can be structured around the three main causes of energy poverty explained above (low income, energy efficiency and energy prices) and/or the types of energy poverty (measurable, perceived and hidden). The diagnosis aims to provide a picture of energy poverty levels at a specific point in time and within a specific geographical area. Key activities in this phase include data collection, selection of indicators and metrics, data analysis, interpretation, and mapping of results.
In summary, the more diverse the approaches used to identify energy poverty at the local level in each municipality, the more information will be available to support the development of a high-impact Local Social Climate Plan in the next phase. More detailed information can be found in the EPAH report “Bringing energy poverty research into local practice: Exploring subnational-scale analyses.”
The expected outcome of the diagnosis phase may be a document containing a summary of the information collected and a data analysis that can be used as a starting point for developing a documented plan.
2.2 – Planning
Once the “who-how-where”, as well as the extent of energy poverty in the municipality, have been identified, there will be sufficient information to begin integrating the social dimension into the Local Climate Plan. It is important to do this without creating a stand-alone energy poverty plan, but rather through an integrated approach combined with existing climate action plans, such as the Sustainable Energy and Climate Action Plan (SECAP) or other similar municipal plans. The information collected should therefore be analysed and integrated with existing energy and climate data from external assessments and stated commitments (e.g. air quality, GHG emissions, flood risk, etc.).
The planning phase is the time to set short-term action-oriented objectives and define medium- and long-term strategic goals for eradication, before starting to implement the plan. Establishing a strategy will help consolidate a plan that may involve different activities, such as training professionals, supporting social services, setting up advisory points, providing tax reductions, etc. Building on the diagnosis phase will help define SMART objectives (Specific, Measurable, Achievable, Relevant and Time-bound) based on the evidence collected.
By the end of the planning phase, the social dimension should be clearly present and recognisable in existing plans, with integrated energy poverty actions in place. The plan can then be considered a Local Social Climate Plan.
2.3 – Implementation
The implementation phase involves the actual delivery of the Local Social Climate Plan. This is the stage where all the efforts come together and the project begins to take shape. This phase mainly involves carrying out project management activities to ensure that the planned actions are implemented successfully, within the established timeframe, with sound budget planning and the involvement of relevant stakeholders. This phase also includes assessing the impact of the actions in terms of mitigating energy poverty. An impact assessment of the implemented activities and plans should include both positive outcomes and constructive feedback to help pave the way for the next steps.
Based on the impact assessment, the local energy poverty diagnosis can be updated with a renewed understanding of how the situation has changed as a result of the implemented plan.
Next steps
This introduction to energy poverty aims to establish a common background that can help facilitate navigation through the different phases. In the following handbooks, we will present each phase of the circular methodology and provide practical information on how to address the different aspects of energy poverty.
Local realities differ, and the tools provided can be used to a greater or lesser extent depending on the characteristics of each context. We encourage all local authorities to adapt the guidance provided and develop their own methodology tailored to their specific local context. In some cases, the recommended steps may already have been carried out, although not necessarily in the suggested order. In others, the proposed activity may be affected by external factors such as available human resources, time and/or budget. The recommendation is to use the approach presented in this introduction and the different steps as a guide and checklist, aiming to achieve the intended outcome of each step, even if with varying levels of intensity. The circular methodology also has the advantage that even small, easy-to-implement actions represent a step forward in the process and can therefore generate positive results that may later develop into larger-scale activities.
Energy Poverty Advisory Hub, 2021. Spanish translation by Ecoserveis.
The Energy Poverty Advisory Hub is an EU initiative launched by the European Commission. This document has been prepared for the European Commission; however, it reflects the views of the authors only, and the Commission cannot be held responsible for any use that may be made of the information contained herein.
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