US Energy Information Administration (EIA) estimated that 17 million households received an energy disconnect/delivery stop notice and 25 million households had to forgo food and medicine to pay energy bills
Energy poverty is not being able to afford adequate warmth, cooling, lighting, or the energy to power appliances that guarantee a decent standard of living and health. One shorthand rule is that a household is energy poor if it must spend more than 10 percent of its income on power. As renewable energy mandates are rising 'ecological' taxes have driven up electricity prices, and increases in energy poverty have become a problem in a number of countries. It is estimated that 50 million European households now qualify. 1
United Kingdom
Energy bills for the 22 million British households not on fixed-term deals rose 54 percent to just under 2,000 pounds a year on average in April. As many as four in ten people potentially will fall into fuel poverty before the end of the year. Analysts have warned of a further jump in the price cap which could see the typical household paying 600 pounds more per year. 2
Around 11 million households on default tariffs will see their bills increase straight away. It is estimated that an additional 600,000 customers currently on cheaper fixed rate tariffs will see their bills rise by a further 150 pounds when their fixed rates end in the summer. This could put the average household bill at more than 2,000 pounds. 3
April's estimated price cap rise will leave a single adult spending a third of their standard allowance on energy bills. This could rise to 37% by October.
The figures represent an historic high compared with 2002 levels, which saw 14% of basic rate benefits spent on energy bills.
Germany
In Germany, electricity prices have more than doubled since 2000 when solar and wind started receiving massive subsidies and favorable regulations and their electricity prices are three to four times what one would pay in the US. (Because of its low reliability solar and wind energy options require an alternative backup—one that's cheap, plentiful and reliable—to make it work, thus creating a more expensive and inefficient process.) 4
Germany saw a record price for households in 2021. It was the sixth year in a row with an increase. Electricity in 2021 costs double what it cost 20 years ago. Much of the price increase over the past two decades is the result of the renewable energies feed-in act. 5
A 2017 study found that the proportion of households in Germany spending more than 10 percent of their income on energy tripled from 7.5 percent in 1986 to 22 percent in 2013. Every year 600,000 households (2 million people) are getting their power switched off in Germany because they can't afford the skyrocketing electric bills. 6 This finding is consistent with other studies of the effects of climate policies on poverty, including a research project undertaken for the IPCC. 7
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Australia
Australian electricity prices have been running at $150 to $250 per megawatt hour in April. This is a big rise, even from March when prices were often $70 to $120 in the three big states. To put that in perspective, six years ago in March, wholesale electricity prices were a tiny $30 to $60. 8
United States
Stark disparities exist in US energy burdens, the percentage of household income spent on energy bills. Urban and rural low-income households spend roughly three times as much of their income on energy costs as compared to non low-income households (7.2% and 9% versus 2.3% and 3.1%, respectively). Moreover, low-income African American, Latin, multifamily and renter households are disproportionately impacted by high energy burdens. Out of a total of 118.2 million US households in 2015, the US Energy Information Administration (EIA) estimated that 17 million households received an energy disconnect/delivery stop notice and 25 million households had to forgo food and medicine to pay energy bills. 9
References
Ronald Bailey, “Renewable energy mandates are making poor people poorer,” Reason, June 2016
Joanne Nova, "Energy crisis in the UK: 40% face fuel poverty by winter and government may finally stop 'green levies' (too late)," joannenova.com, April 22, 2022
Marc Shoffman, "Energy crisis: families are rationing fuel or turning off fridge freezers due to soaring energy prices--how to get help," thesun.co.uk, January 13, 2022
Alex Epstein, “Energy poverty kills,” cornwallalliance.org, June 25, 2021
P. Gosselin, “German household electricity prices reach new record high in 2021—share of green electricity falls,” wattsupwiththat.com, January 11, 2022
Stephen Moore, “Europe's lesson teaches us: don't go green,” townhall.com, May 14, 2017
Keywan Riahi et al., “The shared socioeconomic pathways and their energy, land use, and greenhouse gas emissions implications: An overview,” Global Environment Change, 42, 153, January 2017
Joanne Nova, "Australian electricity price doubles: CEO explains prices up due to lack of coal power," joannenova.com.au, April 19, 2022
Dominic J. Bednar and Tony G. Reames, “Recognition of and response to energy poverty in the United States,” Nature Energy, March 23, 2020
Jack Dini is author of Challenging Environmental Mythology. He has also written for American Council on Science and Health, Environment & Climate News, and Hawaii Reporter.
