Abubakar Ismail and Muhammad Kamil Qaddus

Energy poverty is a critical challenge that leaves millions of households unable to secure essential services such as cooking, heating, cooling, and lighting at an affordable cost. While global discussions on energy access have intensified, Pakistan remains far behind, struggling not only with affordability but also with the fundamental issue of access.

According to the European Commission Advisory Hub, energy poverty rates in Europe surged from 6.9% in 2021 to 10.6% in 2023, meaning over one in ten households now struggles to meet basic energy needs. If these figures are alarming for developed nations, the situation in Pakistan is even more dire. Beyond affordability, Pakistan lacks accurate data on electricity and clean cooking fuel access, making it difficult to design effective interventions.

Pakistan’s energy subsidy framework is deeply flawed, as it benefits only those connected to the main grid, either electricity or gas, while completely neglecting millions living in off-grid areas. The current model is akin to defining poverty solely by income, overlooking those with no income at all. This creates a huge gap in support. It is like trying to fight poverty by only helping people who already have some money, and forgetting about those who have nothing at all. This limited approach keeps inequality alive and fails to solve the real problem, making sure everyone, no matter where they live, has access to affordable and reliable energy.

In remote areas disconnected from the SSGC/SNGPL network, households rely on expensive LPG or wood for cooking, often spending more than urban consumers who have greater affordability. Yet, subsidy structures ignore this disparity, reinforcing energy poverty rather than alleviating it.

Several well-intentioned experts have proposed linking energy subsidies to the Benazir Income Support Program (BISP), assuming that energy poverty and income poverty are interchangeable. However, energy poverty is not just about financial constraints; it is about access, consumption patterns, and regional climatic differences. Treating energy poverty as a mere extension of income disparity risks further alienating vulnerable communities rather than empowering them.

Instead, policymakers must recognize that tackling energy poverty requires a multi-sectoral approach, integrating social policies rather than relying solely on energy policies. Ensuring affordable energy access is crucial, but sustainable solutions demand collaboration across housing, infrastructure, and finance sectors. This means improving living conditions through better building insulation, expanding public transportation that relies on clean energy, offering financial support for energy-efficient appliances, and designing inclusive housing and utility subsidy programs. True energy security is not just about the supply of electricity; it is about empowering communities with the tools and support to access, afford, and benefit from it. Without addressing these interconnected sectors, efforts to eliminate energy poverty will remain fragmented and ineffective.

Energy poverty stems from a complex interplay of factors, including high energy costs relative to household income. The rising cost of living, stagnant wages, and inflation in essential goods have exacerbated the crisis. Vulnerable groups, including unemployed individuals, pensioners, and single-parent families, face disproportionate financial strain.

Additionally, poor energy efficiency compounds the problem. Most buildings in Pakistan are energy-inefficient, leading to excessive energy consumption for heating and cooling. Many low-income households reside in outdated structures with inadequate insulation and inefficient appliances, making energy-saving measures nearly impossible.

Despite global advancements, Pakistan faces several barriers to overcoming energy poverty:

1. Short-term vs. Long-term Interventions: While direct subsidies offer immediate relief, they fail to address structural inefficiencies in energy systems and infrastructure.

2. Limited Access to Subsidies: Many vulnerable households are unaware of available support or face bureaucratic challenges in accessing aid.

3. Policy Fragmen-tation: Incoherent policies across provinces hinder the implementation of effective solutions tailored to local conditions.

Tackling energy poverty requires a dual approach; offering immediate relief while investing in long-term solutions. Financial aid, such as targeted subsidies and social tariffs (A social tariff is a subsidized pricing mechanism where certain eligible consumers, such as those with limited income, the elderly, or other marginalized groups, pay reduced rates for basic utility services.), is essential for short-term support. However, without investments in new infrastructure for accessibility and energy efficiency, home insulation, modern cooling and heating systems, and efficient appliances, energy costs will remain unsustainable.

A just energy transition must also include policies that provide alternatives to utility disconnections, ensuring that struggling households retain access to essential energy services. Consumer awareness programs and tailored advice can enhance the adoption of energy-saving measures.

While addressing energy poverty is critical, the goal must go beyond just alleviating hardship, it is about building energy equity, where every household has fair, reliable, and affordable access to clean energy. Energy equity, ensuring the fair distribution of resources and subsidies, is just as crucial as addressing energy poverty. Without equity-focused policies, subsidies will continue benefiting grid-connected, wealthier households, leaving marginalized communities to bear the brunt of high tariffs and inefficient supply chains.

A national energy equity framework should guide policies to ensure clean, affordable, and reliable energy access for all, particularly underserved communities. This framework must prioritize inclusive decision-making, equitable resource distribution, and community-driven initiatives.

Addressing energy poverty without focusing on energy equity will yield limited progress. Pakistan must first define energy poverty, conduct thorough research, and design a proper subsidy framework aligned with energy equity principles. Only by integrating these elements into long-term policies can Pakistan ensure universal access to clean and affordable energy, not as a privilege, but as a fundamental right.

(Engineer Abubakar Ismail is an expert in the energy sector. With a passion for energy, sustainability, and emerging technologies. He can be approached at [email protected]. Muhammad Kamil Qaddus is an EDF Climate Corps fellow and an energy policy practitioner. He can be reached at [email protected])