An empirical critique of the low income low energy efficiency approach to measuring fuel poverty

Abstract

Fuel poverty is a complex socioenvironmental issue of increasing global significance. In England, fuel poverty is assessed via the Low Income Low Energy Efficiency (LILEE) indicator, yet concerns exist regarding the efficacy of this metric given its omission of households based on Energy Performance Certificate (EPC) ratings, rather than the ability of occupants to afford energy. To assess the potential shortcomings of the LILEE metric, we perform quantitative analyses of fuel poverty and energy security in London, UK. A spatial analysis of London exposes discrepancies between deprivation and expected fuel poverty incidence, demonstrating that a significant proportion of households are currently classed as “not fuel poor” (4.4% of the city's stock, around 171,091 households) but remain likely to be energy insecure. Subsequently, we analyse primary survey data (n = 2886) collected in London using a Random Parameters Ordered Probit modelling framework. 28.2% of respondents were energy insecure, which is 145% higher than the LILEE estimate for London. Surprisingly, no significant variation in energy insecurity rates was found between the most and least efficient homes surveyed. Model estimation results reveal the key characteristics of respondents impacting energy security in the London. Our results can be used to inform a new or amended approach to measuring fuel poverty in England.