Energy poverty rose to 6.1 percent in 2024

In the report entitled Energy Poverty in the Netherlands, and in the Energy Poverty Monitor, TNO and CBS examined how energy poverty has changed between 2019 and 2024. The figures for 2024 are based on a provisional estimate  made by TNO, because not all data is available yet.

More households in energy poverty due to discontinuation of the energy allowance

According to the provisional estimate, an average of 510 thousand households were affected by energy poverty in 2024, or 6.1 percent of all households in the Netherlands. The analysis shows that the increase in energy poverty was mainly due to the withdrawal of financial support. In 2022 and 2023, when energy prices were high, low-income households were entitled to an energy allowance. In addition, a price cap on energy prices was applied for all households in the Netherlands, setting a maximum price for the first 1,200 cubic metres of natural gas and the first 2,900 kWh of electricity.

In 2024, variable energy prices were the same as in 2022, while fixed tariffs were higher. However, in 2024, low-income households were no longer entitled to an energy allowance. For most households, the energy allowance had been 1,300 euros per year in 2022 and 2023. This led to an increase in energy costs, particularly for low-income households, compared to the previous two years.

Less energy poverty than in 2019

Despite the increase in the share of households in energy poverty, the picture was still more favourable than in 2019 when energy prices were much lower. The main explanation for this is that the quality of housing improved significantly between 2019 and 2024. In addition, households have reduced their energy consumption - particularly since the start of the energy crisis - and incomes have risen in recent years, resulting in fewer low-income households.

Energy costs and ‘energy ratio’ on the rise again

Average monthly energy costs in 2024 were at their highest since 2019, both across all households (171 euros) and for households living in energy poverty (184 euros). These costs were lower for the latter group, due to financial support provided in 2022 and 2023. One of the reasons for the rise in average energy costs in 2024 was the withdrawal of financial support by the Dutch government.

‘Hidden energy poverty’ has increased since the energy crisis

Households have started using much less energy to keep their energy bills affordable. As a result, the number of low-income households living in energy-inefficient homes and underconsuming energy rose from 1 percent in 2021 (around 80 thousand households) to 1.4 percent in 2024 (approximately 119 thousand). Among people in low-income households living in energy-inefficient homes, this rose from 24 percent in 2021 to 49 percent in 2024.

Single-person households are more likely to face energy poverty

People living in energy poverty are more likely to be single and to be living on pensions or benefits. Their lower income means that they are more likely than average to live in social housing. Energy poverty is mainly concentrated in a number of large cities and in the regions of Noordoost Groningen and Zuid-Limburg.

People at risk of energy poverty are more likely to own an energy-inefficient home