The European Union must implement its Energy Poverty Alleviation Framework promptly and effectively to help vulnerable communities, according to a new analysis by the Regulatory Assistance Project, an energy policy NGO.
Report author Louise Sutherland highlighted that, despite the EU’s extensive efforts, the number of households struggling to pay energy bills grew significantly between 2021 and 2022. This increase was largely due to the energy crisis that began in autumn 2021 and worsened with the onset of the Ukraine war.
In response to the 35% rise in energy poverty, the EU has developed a new framework that needs immediate action to be effective, Sutherland stated.
This new approach differs from previous strategies that primarily provided financial support for energy bills. The EU’s latest plan focuses on reducing energy use and decreasing reliance on oil and gas.
Typically, a reduction in energy use occurs naturally with rising energy prices and is often a sign of energy poverty. Essentially, the EU seems to be redefining energy poverty to encourage people to use less energy—a behavior already driven by financial constraints.
Although gas prices in Europe are now much lower than their peak in 2022, they remain double the levels before the crisis. Additionally, the EU’s green energy initiatives are expected to raise energy bills further as buildings and transportation are included in the bloc’s emissions trading system.
“It remains to be seen if these measures will be truly effective, and predictions suggest prices could increase significantly around and beyond 2030,” Sutherland told Energy Mix. “Swift action is needed this decade to support households most at risk if prices rise further.”