How to combat energy poverty?

As winter approaches, the topic of energy poverty is on everyone's lips. Whether it's the French government or the European Commission, everyone wants to prevent this phenomenon and find solutions to address it. The adoption of a new recommendation on October 20, 2023, on energy poverty demonstrates to everyone that we must do more to promote a fair and equitable energy transition for all. Enerfip takes stock with you of what energy poverty is, its challenges, and its solutions.

What is energy poverty?

The law of July 12, 2010, on the national commitment to the environment defines energy poverty in a few lines.

“Is in a situation of energy poverty a person who experiences particular difficulties in their home in obtaining the energy supply necessary to meet their basic needs due to the inadequacy of their resources or their living conditions.”

Since 2015, the ONPE (National Observatory of Energy Poverty) has proposed adding indicators of energy poverty to this definition. To assess this phenomenon, we must now take into account:

• the Energy Effort Rate (EER);
• the perceived discomfort due to the cold (COLD);
• the “Low Income High Expenditure” indicator (LIEH).

Key figures

• 20% of French people report having suffered from the cold during the winter of 2020-2021, for at least 24 hours. 40% believe it is due to poor thermal insulation in their homes and 36% for financial reasons.
• In 2020, 10.5% of French people, or 3 million households, spent more than 8% of their income to pay their home's energy bills, and are among the most modest.
• In 2021, before taking into account the energy check, 11.9% of households are in a situation of fuel poverty, an increase of 1.4 points (around 440,000 households) compared to 2020.
• In 2023, these are more than 5.6 million households benefit from the energy check.

Figures from the survey, “Energy poverty monitored by ONPE within ADEME”, conducted by ADEME Expertises for the Ministry of Ecological Transition and Territorial Cohesion, as well as for the Ministry of Energy Transition, updated July 3, 2023.

What are the challenges?

Fighting energy poverty, the vocation of Énergie Solidaire
Created in 2017, Énergie Solidaire was born from the observation of the Friends of Enercoop: the energy transition must benefit everyone and no one should be without heating in winter or fall ill because of a drafty home. Énergie Solidaire's main mission is to promote this endowment fund in order to support associations fighting against energy poverty.
Find out more: www.energie-solidaire.org and www.energie-solidaire.org/occitanie.

Energy poverty creates several problems, whether individual, collective, or related to social, economic, and environmental issues. Among the main issues, the impact on health is undoubtedly the most serious. Why? Because households in energy poverty have difficulty maintaining adequate heating conditions, which can lead to health problems such as respiratory illnesses or infections. Often, the people most affected by this phenomenon are the most vulnerable (low-income people, the elderly, people with disabilities, etc.). This further accentuates social and economic inequalities (debt, energy cuts, etc.). These often precarious living conditions and unequal access to energy resources contribute to inefficient energy consumption and a larger carbon footprint.

In short, all the issues surrounding energy poverty, whether they are a social or environmental emergency, prove that it is important to act today. This is what the French government is promoting by proposing policies and initiatives aimed at improving the energy efficiency of housing and ensuring equitable access to energy services.

Actions implemented by the government to combat energy poverty

To address the challenges of energy poverty, the French government is adopting a policy of support for the most disadvantaged. Among the various measures taken, we can notably cite:

• financial aid and subsidies such as the energy check, the energy transition tax credit (CITE), zero-interest eco-loans (eco-PTZ);
• energy efficiency programs to improve the energy efficiency of housing;
• energy saving certificates (CEE) dedicated to the fight against poverty;
• housing solidarity funds (FSL) and protection against supply interruptions;
• awareness campaigns on ways to reduce energy consumption, on available aid, etc.

Action is essential to combat energy poverty. Talking about it isn't enough! Enerfip understands this. Committed by nature, we offer new solutions to address the challenges of energy transition, transparency, and investment accessibility. Through a meticulous selection of green projects, your investment portfolio will become a driver of positive change while optimizing your financial return.