Household Energy Affordability

Energy is one of the top expenses for millions of households, making energy affordability an important policy concern for governments. The impacts of the global energy crisis on consumer prices have been significantly felt in household budgets. Despite coming down from their peak in 2022, prices remain elevated compared to pre-crisis levels and households continue to grapple with higher living costs.

This report sets out to identify key trends that are shaping the state of energy affordability around the world today. It explores how system drivers and household energy consumption influence the makeup of energy bills and opens a wider discussion on the social implications of energy affordability for households. Based on a review of over 120 energy affordability policies introduced in 2025 that were tracked by the IEA, it also provides an overview of how governments are addressing energy affordability in different contexts and discusses existing policy options and best practices.