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reports - Deliverable

Energy Poverty: Analysis of the State of the Art and Characterization of Vulnerable Consumers

reports - Deliverable

Energy Poverty: Analysis of the State of the Art and Characterization of Vulnerable Consumers

Energy poverty, traditionally and historically associated with inadequate home heating, is a complex phenomenon that also involves other areas such as cooling and essential services that enable individuals and families to participate actively in society, such as mobility. It can also have a significant impact on individuals’ health. It is evident that energy poverty is a social phenomenon receiving attention and study from governments at both the European and national levels. Efforts are being made to identify potential solutions to mitigate the issue by addressing three key factors closely linked to the problem: high energy prices, low income, and poor energy efficiency in homes. The aim of this report, which forms the first part of a three-year project on the topic, is to provide a general overview of poverty at the European and national levels as a preliminary step toward characterizing vulnerable consumers and finding concrete solutions to mitigate the issue.

Energy poverty has traditionally and historically been identified primarily as an issue of inadequate heating in homes, which arises when people, due to financial difficulties, cannot heat their homes to a satisfactory comfort level at an affordable cost.

However, as the issue has been explored in greater depth, and due to the effects of climate change and evolving household behaviors and needs, attention has also expanded to include the overall climate control of buildings—cooling as well as heating—and other essential services. These include mobility, being able to cook hot meals, having access to hot water for personal hygiene, and using essential appliances, all of which enable individuals and families to participate actively in society.

The lack of such basic services not only leads to inequality and social exclusion but also has negative externalities for the broader community. It increases the likelihood of needing healthcare services, thus placing greater pressure on healthcare costs and facilities. This situation also contributes to absenteeism from work and social exclusion, with well-known consequences.

The literature shows a clear correlation between energy poverty and health, reflected in an increased likelihood of respiratory and cardiovascular diseases and the exacerbation or onset of psychiatric conditions.

It is therefore evident that energy poverty is a social phenomenon that has garnered attention and study from European and national governance, particularly in light of the significant economic challenges that have affected the global economy in recent years. Additionally, the push for greater environmental sustainability in Europe (decarbonization) will inevitably increase costs for households. Efforts are underway to identify potential solutions to mitigate the issue by addressing the three main factors closely connected to the problem: high energy prices, low income, and poor energy efficiency in homes.

The identification of potential mitigation measures, which is the subject of this three-year project, begins with an initial phase of observing the phenomenon. This document presents an analysis of the problem’s scope, its prevalence in various societal sectors, and the characteristics of the affected actors, particularly those who are vulnerable. Understanding these factors is essential to finding the most effective way to combat the issue and creating tailored policies to eradicate it.

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