[LUM#19] 20% of households report feeling cold in their homes
Turning down the heat isn’t just an environmental choice; above all, it’s an economic necessity for the 12 million French people living in energy poverty who are bearing the brunt of rising energy prices. How do we define and measure this specific form of energy poverty? Sandrine Michel, an economist at the ART-Dev* research lab, explains.
How is energy poverty defined?
S.M.: The very concept of energy poverty emerged in the United Kingdom in the 1990s, following the deregulation of the energy sector. The European Parliament defines it as a situation in which a household is forced to spend more than 10% of its income on heating and lighting its home to an acceptable standard. There is also a French definition established in 2010 by the Grenelle 2 Environmental Act, which states that a person is in a situation of energy poverty if they experience particular difficulties in their home in securing the energy supply necessary to meet their basic needs due to insufficient resources or inadequate housing conditions.
Does this 2010 definition still reflect the current situation?
S.M.: The context at the time was quite different, partly because in 2010 energy prices did not fluctuate to the extent they do today, but also because inflation was, so to speak, under control at that time, whereas today its resurgence is causing a sharp decline in purchasing power. Furthermore, it should be noted that this definition overlooks the issue of transportation, even though half of household energy spending goes toward housing and half toward mobility.
What factors contribute to this precariousness?
S.M.: It stems primarily from economic insecurity and is therefore linked to poverty. But energy poverty also involves fluctuating energy prices, household income levels, household habits, as well as the quality of housing and heating systems. This is, in fact, a key point, given that according to the Phebus survey conducted by the French Environment and Energy Management Agency (ADEME) in 2018, 7.4 million households live in homes with an energy performance rating of F or G—the so-called “energy-leaky” homes. A figure that rises to as many as 11 million households according to the Abbé Pierre Foundation! To address this, the first law on energy-efficient renovation was enacted in 2015, but it must be acknowledged that with 50,000 housing renovations per year, the project is moving at a snail’s pace—even on Prozac.
Can we quantify the economic impact on the residents of these energy-inefficient buildings?
S.M.: It is estimated that for a “thermal sieve” building, average annual heating costs range from 5,000 to 6,000 euros. In effect, this creates a double burden of poverty: the poorest households tend to live in the least well-insulated homes, and they are the ones hardest hit by rising energy prices.
Who are the French people today who are struggling with energy poverty?
S.M.: 73% of people experiencing energy poverty are renters, and the majority live in the private rental market. 43% are single individuals who tend to be younger than average and live in urban areas. But we should treat this idea of a typical profile with caution. Take, for example, a retired couple living in an older home built before 1975 and therefore poorly insulated; they may face a substantial energy bill even though they own their home.
In practical terms, how does this energy poverty affect the daily lives of those affected?
S.M.: 36% of the households in question report having cut back on heating at home to avoid high bills, and these are 2021 figures that therefore do not fully reflect the full extent of the rise in energy prices. In 2020–2021, 20% of households reported feeling cold in their homes—that’s 40% more than in 2018! There are significant impacts on quality of life: 48% of adults experiencing energy poverty suffer from migraines, 41% from anxiety and depression, and 22% from chronic bronchitis. Exposure to energy poverty increases the incidence of wheezing in children by a factor of 4. It also increases the risk of mold in the home by a factor of 3.5.
You emphasize the importance of accurately measuring energy poverty. Why?
S.M.: Precisely because one-dimensional measures that take only income into account do not reflect this reality. There is a second way to measure energy poverty—a multidimensional one—that incorporates not only financial factors but also housing comfort, residents’ perceptions, their safety, their health, and the environment, providing a more complex and nuanced assessment. This multidimensional approach is certainly more difficult to implement, but it provides a more precise definition and clearly shows that the challenge of energy poverty is considerable. A better definition would also allow for more targeted outreach to specific groups and improve the effectiveness of policy measures.
*Art-Dev (CIRAD, CNRS, UPVM, UPVD, UM)
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