Assessing Energy Poverty in the European Union: Indicators, Challenges, and Policy Solutions

Abstract A sharp increase in energy prices since 2021 has had a significant impact on the European Union (EU) energy market turning the energy poverty issue into an important concern. Around 42 million EU citizens or 9.3 % of the total population in the Union faced an inability to adequately heat their homes in 2022. It is a clear call for policymakers to seriously address the energy poverty aspects eliminating the negative socio-economic impact. The research aims to analyse the energy poverty concept, its main indicators and affecting factors, identifying the possible solutions for reducing energy poverty, and paying particular attention to vulnerable users. The qualitative methods were used, i.e., the authors conducted a literature review and scrutinized scientific publications, reports and legal acts. As a result of the research, the authors have characterised the energy poverty situation in different countries, identified the main areas for solving the energy poverty challenge, as well as shared experiences of different countries on the solutions taken. The authors conclude that energy poverty has a particular impact on low-income households, children, disabled people, seniors and single mothers, who may have relatively higher energy consumption and limited resources available. In this regard, countries can benefit from such measures as setting a clear definition of energy poverty and its measurable indicators, identification of supported households, on-the-spot consultations and audits, attracting local governments, and non-governmental organisations, as well as improvement of support instruments of renewable energy sources.