A new report from the Economic and Social Research Institute (ESRI) has found that 14% of Irish households in 2024 reported being unable to afford adequate heating or to fully pay their energy bills, highlighting ongoing pressures linked to energy costs and income levels.
The study shows an improvement compared with the 25% peak recorded during the financial crisis that began in 2008, but researchers caution that affordability challenges remain widespread when broader measures are taken into account. Using multiple indicators of energy hardship, the ESRI estimates that around 30% of households experience some form of difficulty affording basic energy needs.
Energy poverty is defined in the report as a situation where households cannot afford essential services such as adequate heating, lighting, cooking, or powering household appliances. The ESRI attributes this condition to a combination of low disposable income, high energy prices, and inadequate housing. It also notes strong links with unemployment, income inequality, and social deprivation.
The findings are based on data collected before the recent surge in energy prices linked to the conflict involving Iran, meaning current pressures may be higher than reflected in the study.
According to the ESRI, targeted supports aimed at lower-income households are the most cost-effective way of addressing energy poverty. The report estimates that individuals affected would require an average income boost of about €480 per year to move out of fuel poverty. Delivering such support across affected households would cost the State approximately €370 million annually, significantly less than the €575 million spent on universal electricity credits in 2024.
ESRI Postdoctoral Research Fellow Dr Andrés Estévez said policy should prioritise those most in need. He explained that while universal measures like electricity credits can help in the short term, targeted assistance is more efficient over time. He also pointed to the need for longer-term investment in energy systems that reduce reliance on fossil fuels and improve resilience against global price shocks.
Dr Estévez noted that Ireland compares relatively well with other European countries on a single measure of energy poverty, where about 9.2% of households across Europe report difficulty affording adequate warmth. However, he warned that rising global energy costs and wider economic uncertainty could increase pressure on households in the period ahead.
