Annual payment of €480 would help people to exit energy poverty – study

Households would need an average of €480 per year in additional income to exit energy poverty, according to a study by the Economic and Social Research Institute (ESRI) on behalf of the Department of Climate, Energy, and the Environment. Around 14 per cent of households reported being unable to afford adequate warmth or pay utility bills fully. The study highlights that energy poverty is driven by low disposable income, high energy costs, and poor housing quality. It found that energy poverty is broader than headline figures suggest, with over 30 per cent of households experiencing affordability challenges when multiple measures are considered. Using a single indicator underestimates the problem and overlooks vulnerable groups. The report recommends tracking three key indicators: inability to afford adequate warmth, high energy costs relative to income, and unusually low energy expenditure. Energy poverty is concentrated among low-income households, renters, households with unemployed members, female-headed households, rural households, and single-adult families. The estimated cost to help people exit energy poverty is €370 million, which is cheaper than the €550–575 million spent on universal electricity credits in 2024, suggesting targeted measures could deliver similar support at a lower cost. Dr Andres Estevez and Dr Miguel Tovar Reanos emphasized the need for a multidimensional monitoring system and closer coordination across social protection, housing, and energy policy to better support those experiencing energy poverty.