The report ‘Household Energy Affordability’ by the International Energy Agency (IEA) provides a detailed snapshot of the pressure households continue to face in the wake of the 2022 energy crisis. Although bills have fallen from their peak levels, in 2024, they remained, in real terms, above pre-pandemic levels, consolidating energy as the third-largest item of household expenditure after housing and food. Growing electrification — with electricity surpassing one trillion dollars in global residential spending for the first time — places tariff design, network costs, and taxation at the centre of public policy considerations.

The analysis highlights a persistent gap: in advanced economies, lower-income households devote more than 20% of their income to energy, twice the share of median households, despite consuming less. At the same time, 730 million people still lack access to electricity, and 2 billion do not have access to clean cooking solutions, broadening the global dimension of the challenge. The report also links affordability to impacts on health and education, showing that energy poverty is not solely a matter of prices, but also of housing quality, access to services, and the design of targeted policies.