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Fuel Poverty and the 2022 Energy Crisis

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  • Paul Simshauser

Abstract

The Ukraine war has increased coal and gas prices during 2022. Consequently, spot prices in Australia's National Electricity Market rose from $75 to $225/MWh, year‐on‐year. Households are shielded from spot prices, but as energy retailer hedge contracts mature, they are replaced by higher cost contracts, and end‐use retail tariffs will then rise. In this article, fuel poverty levels in Queensland are analysed. Model results forecast that fuel poverty rises from 6.8 per cent to 10.5 per cent of households. However, changes to energy concessions policy in 2016‒2017 materially enhanced horizontal and vertical efficiency, with successful targeting rising from 51 per cent to 69 per cent of vulnerable households.

Suggested Citation

  • Paul Simshauser, 2022. "Fuel Poverty and the 2022 Energy Crisis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(4), pages 503-514, December.
    • Handle: RePEc:bla:ausecr:v:55:y:2022:i:4:p:503-514
    DOI: 10.1111/1467-8462.12492
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    References listed on IDEAS

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    Cited by:

    1. Gu, Jiafeng, 2023. "Energy poverty and government subsidies in China," Energy Policy, Elsevier, vol. 180(C).
    2. Mei Song & Jia Zhang & Xiaohao Liu & Liyan Zhang & Xuguang Hao & Mengxue Li, 2023. "Developments and Trends in Energy Poverty Research—Literature Visualization Analysis Based on CiteSpace," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    3. Armin Pourkhanali & Peyman Khezr & Rabindra Nepal & Tooraj Jamasb, 2023. "Fuel Price Caps in the Australian National Wholesale Electricity Market," CAMA Working Papers 2023-39, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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