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Energy Poverty: Millions Struggle to Pay Bills in US, Germany, and Canada

High energy prices and financial strain leave millions vulnerable to power disconnections. It's time to address energy poverty.

In this image we can see sheds, transformers, electric poles, electric cables, fences, street pole,...
In this image we can see sheds, transformers, electric poles, electric cables, fences, street pole, street light, trees and sky with clouds.

Energy Poverty: Millions Struggle to Pay Bills in US, Germany, and Canada

Power disconnections due to unpaid bills are a significant issue in many countries. While data is inconsistent in the US, Germany and Canada face substantial challenges with households struggling to pay their energy bills.

In Germany, around 350,000 households, or 0.9% of the total, had their power shut off in 2015 due to unpaid bills. This is a notable figure, but it's important to note that only 0.9% of German households had their power cut off, while 4.2% were in arrears on their monthly utility bills in 2014, according to Eurostat.

In Canada, a bank survey found that 40% of households with incomes of at least 50,000 CAD had trouble paying monthly energy bills at least once in 2014. This highlights the financial strain many households face.

High energy prices can incentivize conservation and efficiency, but it's crucial that the poor are protected from these prices through social policy. The term 'energy poverty' is a subset of poverty and should not be the primary focus of social policy.

In the US, consistent statistics on power disconnections are not available. However, in 2015, approximately 4 million households experienced electricity shutoffs due to non-payment of bills. Germany and Canada face significant challenges with households struggling to pay their energy bills, with Germany ranking seventh out of 33 countries in 2014 for households unable to pay monthly energy bills on time. It's clear that more needs to be done to support households struggling with energy poverty.

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