Energy poverty in times of high energy prices
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Published
15-12-2022
Iñigo Antepara Lopez de Maturana
Abstract
On many occasions, those working on poverty without adjectives often ask whether fuel poverty is really something different from poverty. The aim of this paper is to analyse different aspects of fuel poverty and shed some light on the discussion. In defining energy poverty, the capability approach is often used for impoverished countries, while in rich countries subjective or energy expenditure-based indicators are often used. The latest conceptualisation work comes from the Right to Energy. The relationship with income is central to any analysis of energy poverty, but we will see that it is not enough. The relationship between debt and fuel poverty is also one of the main elements to take into account. In addition, we will analyse the effect of new technologies: smart meters, algorithms... We will consider at this point whether it is appropriate to talk about fuel poverty as something different from poverty. We will apply all these preliminary concepts to the current times of high energy prices and inflation. We will analyse the energy market, market failures, what institutional policies are in place today against energy poverty, and how energy poverty is being addressed in the energy system transition. We will highlight that other policies are possible: non-market solutions, or the decommodification of energy services. To conclude, we will mention universal basic income as a solution to the lack of income of households in fuel poverty, and the danger coming from the discourses of the far-right.
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Keywords
Energy Poverty, Capabilities Approach, Right to Energy, New Technologies, Energy Market, Universal Basic Income
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