Energy poverty is increasing, with reports indicating that the percentage of people feeling cold at home has risen from 14% in 2020 to 30% in 2024. Contributing factors include rising energy prices and material deprivation affecting 13% of households. The link between energy and general poverty is evident, worsened by climate change and housing costs. Proposed solutions include increased funding for public housing renovations, enhanced energy vouchers, and protections against disconnections for vulnerable households.
Escalating Energy Poverty: A Worrying Trend
According to Hélène Denise, the situation regarding energy poverty has significantly deteriorated over the past four years. The percentage of individuals reporting that they feel cold in their homes has surged from 14% in 2020 to a staggering 30% in 2024. This alarming trend can be attributed to multiple factors, including soaring energy prices that have risen sharply despite government-imposed price shields. Unfortunately, these protective measures are fading away as energy costs remain elevated, leaving households struggling to cope amid high inflation rates. In fact, a report from Insee indicates that the rate of material deprivation—households unable to meet essential needs—has climbed to 13% in 2023.
Link Between Energy Poverty and General Poverty
Energy poverty is closely intertwined with broader poverty issues. Many individuals are facing financial insecurity, with the incomes of the most vulnerable populations stagnating while prices continue to climb. The rising cost of housing, particularly escalating rents, further exacerbates the situation, limiting disposable income for households. Alarmingly, the poverty threshold is nearing the minimum wage, and a significant number of homes—approximately 4.6 million—are classified as energy-intensive, making heating costs exorbitantly high.
Climate change is another critical factor intensifying energy poverty. The increase in global temperatures leads to more frequent and severe weather events, such as prolonged heatwaves. In France alone, the previous year saw around 5,000 heat-related deaths, with an additional 20,000 individuals requiring emergency medical attention. Over the past decade, the percentage of people suffering from excessive heat in their homes has risen by 26%. In the coming years, it is essential to adapt renovation policies to address extreme heat effectively; otherwise, we risk a surge in energy consumption from air conditioning units, further straining household budgets and contributing to greenhouse gas emissions.
Proposed Solutions to Address Energy Poverty
To combat energy poverty effectively, the state must adopt a more ambitious approach toward funding public housing renovation initiatives. While there was an initial goal of achieving 600,000 renovations per year by 2030, the current pace is around only 200,000. Increased financial support is crucial to assist households in making necessary renovations, as this is a long-term solution to the ongoing crisis.
In the short term, immediate assistance is needed for households struggling to pay energy bills. The energy voucher system serves as an essential tool, providing financial relief to the most vulnerable populations. However, this system is currently under threat. Previously, the vouchers were automatically distributed to individuals with a taxable income below 11,000 euros annually, but recent changes in legislation may eliminate this automatic allocation. As a result, the poorest households may now be required to navigate a platform to request their vouchers, a process known to be ineffective as only 13% of eligible individuals have claimed their support under similar systems.
To enhance the effectiveness of the energy voucher, there is a pressing need for its automatic distribution to be reinstated. Additionally, the amount of the voucher, currently set at 150 euros, should be tripled, and the eligibility threshold raised so that 30% of the poorest households can receive this vital support, compared to the current 15%. Finally, it is imperative to enact legislation that prohibits energy suppliers from disconnecting electricity for struggling households, a measure that should be upheld beyond the winter months.