Household Energy INTERNATIONAL ENERGYAGENCY of energy issuesincluding oil, gasand coal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement and muchmore. Through its work, BelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungary ChinaEgyptIndiaIndonesia without prejudice to thestatus of or sovereigntyover any territory, tothe delimitation ofinternational frontiers andboundaries and to the participates in thework of the IEA Source: IEA.InternationalEnergy Agency Website: Abstract Energy is one of the top expenses for millions of households, making energyaffordability an important policy concern for governments. The impacts of theglobal energy crisis on consumer prices have been significantly felt in household This report sets out to identify key trends that are shaping the state of energyaffordability around the world today. It explores how system drivers and householdenergy consumption influence the makeup of energy bills and opens a widerdiscussion on the social implications of energy affordability for households. Based Acknowledgements This study was prepared by the Energy Efficiency and Inclusive Transitions Office(EEIT) in the Directorate of Energy Markets and Security (EMS) and the Office oftheChief Energy Economist(OCEE)in the Directorate of Sustainability,Technology and Outlooks (STO). The study was designed and directed byBrian The other main authors of the report were Lucas Boehlé, Juliette Denis-Senez,Ana Lepure, Jemima Storey, and Fabian Voswinkel. Key contributions came fromJacopo Pasqualotto, Naomi Rossetti, Doriane Senat and Örs Sümeghy. Valuableanalysis, feedback and data were additionally provided by Yasmine Arsalane,Heymi Bahar, Alexandre Bizeul, Federico Callioni, ErenҪam, Julie Dallard, Emma The report draws on household expenditure and end-use data from the IEAEnergy Data Centre, the development of which was led by Alexandre Bizeul withguidance from Agnieszka Koscielniak and Roberta Quadrelli, and support from Laura Cozzi, Director of Sustainability Technology and Outlooks, and KeisukeSadamori, Director of Energy Markets and Security, provided expert guidance. Valuable comments and guidance were also provided by Amos Bromhead, PaoloFrankl, Dennis Hesseling, Maria Sicilia, Brent Wanner, and Daniel Wetzel. Jethro Mullen,Head of the Communications and Digital Office (CDO) was key tothe publication process along with his team, including Astrid Dumond, Liv Gaunt, Elspeth Thomson edited and copyedited the report. Caroline Fedrine provided Table of contents Executive summary……………………..…………………………………………………………9 Chapter 2: Electricity supply and affordability................................................................ 23 2.1 What drives electricity bills? ...............................................................................232.2 Affordability challenges for electricity access in Africa ........................................302.3 Supply-side options to reduce costs and improve electricity affordability ............32 Chapter 3: Demand-side focus on household energy affordability.............................. 37 3.1 Household energy affordability: drivers and opportunities...................................373.2 Policy trends.......................................................................................................45 4.1 Measuring energy poverty and affordability ........................................................534.2 High energy bills are not the only way in which affordability affects households .564.2.1 Energy poverty and health...............................................................................56 Annex................................................................................................................................... 69 Executive summary Household energy affordability continues to be a keypriority for governments as energy bills remain elevated Household energy bills globally have come down from the peaks seenduring the global energy crisis in 2022, but on average they were still around4% higher in real terms in 2024 than they were in 2019.Household energy billssoared in many parts of the world as a result of the Covid-19 pandemic andRussia’s full-scale invasion of Ukraine in 2022, which introduced a period of Household bills are sensitive to movements in underlying fuel prices; oilprice pressures eased in 2025, but natural gas markets remained relativelytightin many parts of the world.Benchmark oil prices were aroundUSD 15/barrel lower at the end of the year than at the start, reflecting a largeglobal supply surplus and bringing gasoline prices back to pre-crisis levels.Meanwhile, relatively slow growth in supply kept natural gas import prices elevated The prices paid by households for energy vary widely from country-to-country, reflecting not just the cost of supply but also various additionallevies, taxes and subsidies