New study from Economic and Social Research Institute (ESRI) sheds fresh light on scale and complexity of energy poverty in Ireland, thus revealing the issue is far more widespread than traditional measures suggest.
€480 Could Make a Critical Difference.
According to the research, households experiencing energy poverty would need an average income boost of €480 per year to escape the condition. This relatively modest figure highlights how targeted financial supports could significantly improve living conditions for vulnerable groups, at a fraction of the cost of broader, universal schemes.
The study estimates that delivering this targeted support would cost approximately €370 million, notably less than the €550–€575 million spent on universal electricity credits in 2024, suggesting more efficient policy solutions are within reach.
Energy Poverty Affects More Households Than Expected.
While official figures indicate that just over 10% of households spend more than a tenth of their disposable income on energy, the ESRI warns this measure alone understates the reality.
When multiple indicators are considered, the findings show that:
- Around 14% of households report being unable to afford adequate warmth or fully pay utility bills.
- More than 30% of households experience some form of energy affordability challenge.
This aligns with broader ESRI research showing energy costs place a disproportionate burden on lower-income households, where energy spending takes up a larger share of income.
Why Current Measures Fall Short.
The report emphasises that relying on a single metric—such as income share spent on energy—fails to capture the full picture. Energy poverty is driven by a combination of:
- Low disposable income.
- High energy costs.
- Poor housing quality.
A household may not appear “energy poor” by one definition, yet still struggle to heat their home adequately or cut back on essential energy use.
A Call for Smarter Monitoring.
To better understand and address the issue, the ESRI recommends adopting a multidimensional monitoring system, focusing on three key indicators:
- Inability to afford adequate warmth.
- High energy costs relative to income.
- Unusually low energy usage (often due to under-heating homes).
This approach would provide policymakers with a more accurate and actionable picture of need.
Who Is Most Affected.
The research identifies several groups at higher risk of energy poverty, including:
- Low-income households.
- Renters.
- Households with unemployed members.
- Female-headed households.
- Rural communities.
- Single-adult families.
These findings reflect long-standing evidence that energy poverty is closely tied to income inequality and housing conditions, with disadvantaged groups often living in less energy efficient homes .
Policy Implications: Targeted Action Over Blanket Measures
Experts behind the study stress that better coordination between social protection, housing, and energy policy is essential. Dr Andrés Estévez noted that tackling energy poverty requires recognising the multiple ways it is experienced, while Dr Miguel Tovar Reaños highlighted the importance of integrated policy responses to strengthen protections for vulnerable households.
Conclusion.
This latest ESRI report makes one thing clear: energy poverty in Ireland is both more widespread and more complex than headline figures suggest. However, it also shows that targeted, data-driven interventions could deliver meaningful relief, efficiently and effectively.
As Ireland continues its transition toward a cleaner energy future, ensuring that no household is left behind will require smarter measurement, sharper policy focus, and sustained investment in those who need it most.
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