Do unemployment benefits and economic aids to pay electricity bills remove the energy poverty risk of Spanish family units during lockdown? A study of COVID-19-induced lockdown

Abstract

The COVID-19 pandemic has triggered serious economic crises in many countries. In Spain, millions of individuals have been ordered to remain at home and many are unemployed. The increased use of electrical appliances and low incomes make energy poverty highly likely. This study thus analyses the effectiveness of unemployment benefits and social measures to help Spanish family units pay their electricity bill during the COVID-19-induced lockdown in Spain (March–May 2020) and during a hypothetical lockdown in winter and summer. The results showed that the unemployment aids can contribute to alleviating energy poverty, especially if the unemployed individual worked in a poorly-paying job or for just a few hours. However, the social measures were found insufficient to avoid energy poverty. The application of a variable discount percentage in the electricity bill based on income and the month of the year would reduce energy poverty risk during further incidences of lockdown.