Mar Reguant discussion of: Policy responses to energy price shocks

In this paper, the authors undertake a large microdata collection effort to quantify the energy shock households faced in England and Wales during the energy crisis, examining the incidence across demographics and building characteristics. Understanding the equity impacts of the energy crisis and transition is crucial. The UK context is particularly relevant, as many households struggled with energy poverty during the crisis due to a combination of severe price increases and poor building insulation. While energy use is lower for low-income households, it represents a disproportionate burden on their income. As in other countries, this crisis hit low-income households the hardest in relative terms. The Annual Fuel Poverty Statistics report estimates that while fuel poverty only increased slightly in 2022, reaching 13.4% of households in England, the monetary gap required to relieve households from energy poverty increased by 37% (Department for Energy Security and Net Zero & Department for Business, Energy & Industrial Strategy, 2023).