Practices

European Energy Poverty Index (EEP I)

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The European Energy Poverty Index (EEPI) is a composite indicator which scores and ranks Member States’ progress in alleviating domestic and transport energy poverty as well as their nexus. The EEPI is composed of two sub-indexes, the European Domestic Energy Poverty sub-Index (EDEPI) and the European Transport Energy Poverty sub-index (ETEPI).

Tracking progress in the delivery on the right to energy services for all is crucial for making Europe’s energy transition a just transition. The European Energy Poverty Index (EEPI) allows, for the first time, assessing progress made by Member States in alleviating both transport energy poverty, domestic energy poverty and their nexus. It does so by combining, in one single figure, the common metrics used for assessing the alleviation of causes of energy poverty with those assessing the alleviation of its symptoms as described in the EEPI framework.

 

On one hand, progress made in alleviating transport energy poverty is assessed, for the first time, for citizens using public transport and those using their own cars for the daily travels needed to meet their basic socio-economic needs. On the other hand, progress made in alleviating domestic energy poverty is assessed, for the first time, for the combined effect of summer and winter domestic energy poverty. The EPI complements existing metrics by allowing across country analyses of the progress made in alleviating all dimensions of transport and domestic energy poverty as well as their nexus.

 

Looking at the progress made in alleviating the combination of domestic and transport energy poverty reveals a more complex scenario. Member States progressing well in alleviating domestic energy poverty are not necessarily those who are progressing well in alleviating transport energy poverty. A clear divide exists, between Western/Northern and Eastern/Southern-Eastern countries, in the progress made in alleviating domestic energy poverty. However, the overall scoring changes when progress made in alleviating transport energy poverty is included. The EEPI scoring argues for a better consideration of the transport and domestic energy poverty nexus in policy design.

 

Alleviating domestic energy poverty requires making each single building or cluster of buildings positive energy to ensure buildings produce more energy than they consume annually. Positive energy buildings: 1) reduce energy needs; 2) protect consumers from the rise of energy prices; and 3) protect first income quintile citizens from tariff design that penalise those consuming less energy. Overall, positive energy buildings will ensure access to domestic modern energy services for all regardless of income by reducing the annual cost of energy bills to zero. The expected global warming and its impact on summer domestic energy poverty must be seriously considered when buildings are made positive energy.

 

This report was commissioned by the European Climate Foundation and targets a broad range of actors interested by energy poverty including policy-makers and advocates at different levels of governance.