Energy poverty reduced by compensation and energy savings

On top of low income, households in energy poverty face high energy costs and live in buildings with low energy efficiency. This occurs when a home has poor heating (e.g. due to poor insulation) and/or when there are no opportunities to generate energy (e.g. with solar panels). A low household income is limited to a maximum of 30 percent above the low-income threshold.

Compensation measures dampened rise in energy poverty

In the report entitled Energy Poverty in the Netherlands which was published in July 2024, TNO and CBS examined how energy poverty has changed between 2019 and 2023. Figures for 2023 are based on a provisional estimate, as not all data was available at the time of compilation. The figures for 2019 to 2022 are based on the 2019-2022 Energy Poverty Monitor.

According to provisional estimates, an average of 400 thousand households faced energy poverty in 2023, which is 4.8 percent of all households in the Netherlands. The analysis shows that compensation measures have greatly dampened the rise in energy poverty.

In 2022 and 2023, low-income households were entitled to an energy allowance. In addition, a price cap for energy was introduced in 2023. Without these financial support measures, the number of households touched by energy poverty would have been larger: an estimated 10.7 percent of households in 2023. In other words, nearly 500 thousand households have been lifted from energy poverty as a result of energy payments being provided.

Energy poverty declined between 2019 and 2023

The share of households affected by energy poverty has declined in recent years. In 2020 in particular, it dropped relatively sharply compared to 2019, from 8.6 to 6.4 percent. This was due to a decline in energy prices, a decrease in the number of homes with low energy efficiency, low inflation and a decrease in the number of households with an income below the low-income threshold.

In 2021, energy poverty remained at approximately the same level (6.3 percent). This was followed by a strong decrease in 2022, to 4.0 percent, due to unprecedented energy savings by households in response to the high energy prices, combined with energy allowances by the government.

According to provisional estimates, a higher proportion of households faced energy poverty in 2023 than in 2022, at 4.8 percent. Prices rose to a peak in the beginning of the year and remained at levels well above those of 2021 and 2022. The compensation measures have greatly mitigated the impact of higher prices, but did not eliminate them.

'Hidden energy poverty' has risen sharply

The report by TNO and CBS also discusses hidden energy poverty – households that until now were under-reported in statistics because they kept their energy bills affordable by, for example, lowering the temperature of their heating (energy underconsumption). An estimated 116 thousand households (1.4 percent) faced hidden energy poverty in 2022. These are low-income households living in homes with low energy efficiency, representing 39 percent of all of these households. In 2021, this amounted to 24 percent (80 thousand homes).

Energy costs are rising

Energy costs of households in energy poverty are estimated to have increased by an average of 89 euros per month, from 49 euros to 138 euros between 2022 and 2023. This means that in 2023, households in energy poverty spent an average of 8.5 percent of their income on energy costs, while in 2022, this energy ratio was only 3.8 percent.

Most energy poverty among people living in housing corporation dwellings

Over two-thirds of households affected by energy poverty (65 percent) live in housing corporation dwellings. Nearly a quarter (23 percent) rent from a private owner and around an eighth (12 percent) own their home. Single-person households and single-parent households are heavily overrepresented among households in energy poverty.

In 2023, energy poverty was relatively the most common in the regions of northeast Groningen and Zuid-Limburg, and in the cities of Rotterdam, The Hague, Arnhem and surrounding areas, Almelo and Enschede. The financial support measures mainly helped households in these regions, assuming that all households that were entitled to energy allowance also applied for it.

The National Energy Poverty Research Programme

The research programme Energy Poverty in the Netherlands is part of the multi-year National Energy Poverty Research Program, which s conducted by TNO in cooperation with the ministries of the Interior and Kingdom Relations (BZK), Social Affairs and Employment (SZW), and Economic Affairs (EZK), the provincial executives of Noord-Holland, Zuid-Holland, Flevoland and Noord-Brabant, Netherlands Enterprise Agency (RVO, the Association of Netherlands Municipalities (VNG) and CBS.

In addition, on behalf of the Ministry of Economic Affairs and Climate, CBS annually publishes the Energy Poverty Monitor, a set of tables and microdata with the latest available information on the affordability of energy costs for households. Because the necessary data are not available until 14 months after the end of a reporting year, the most recent monitor covers 2022. These microdata have been used by TNO to calculate the situation for 2023.