Portugal and Spain face rising energy poverty in the EU

In 2023, Portugal and Spain reported the highest levels of energy poverty in the European Union, with 20.8% of their populations unable to adequately heat their homes. This alarming statistic was highlighted in the State of the Energy Union report released by the European Commission, which also noted a general increase in energy poverty across the EU, rising by 1.3 percentage points from the previous year. The report emphasized the need for stronger protections for vulnerable consumers amid an ongoing energy crisis and inflationary pressures. The report indicated that Bulgaria and Lithuania followed closely behind Portugal and Spain in energy poverty rates, while countries like Luxembourg and Finland reported significantly lower percentages. The average across the EU stood at 10.6%, underscoring the disparity in energy access among member states. The European Commission pointed out that member states have the ability to implement measures to protect families from excessive energy costs. To address these challenges, the EU has introduced new energy market legislation aimed at safeguarding vulnerable households from disconnections and providing emergency measures during gas price crises. A notable initiative is the establishment of a Social Climate Fund, which is expected to generate at least €86.7 billion to support a socially equitable transition to climate neutrality. As the EU continues to shift towards renewable energy sources, half of its electricity production in the first half of 2024 came from renewables. Additionally, the EU has made significant strides in reducing its dependency on Russian gas, with imports dropping from 45% in 2021 to 18% by mid-2024, reflecting a broader strategy to enhance energy security.