SOC2: Share of household income spent on fuel and electricity Brief Definition Share of household disposable income (or private
consumption) spent on fuel and electricity (on
average and for the 20% of the population with the
lowest income)
Units Percentage
Alternative Definitions Share of income needed to satisfy minimum
household commercial energy requirements for
household income group
Agenda 21 Chapter 3: Combating poverty
POLICY RELEVANCE (a) Purpose: This indicator provides a measure of energy affordability for the
average household and for the poorest segment of households.
(b) Relevance to Sustainable Development: From a sustainable development
perspective, it is important to examine income, wealth and in particular affordability
of modern energy services across the population. A country may have a high per
capita gross domestic product (GDP), but its income distribution may be so skewed
that a large percentage of the population has no possibility to meet their needs for
commercial household energy at current energy prices and private income levels.
Therefore, there is a need to decrease the burden of expenditure on fuel and electricity
in household budgets for the lower-income groups of the population in developing
countries, so as to promote social and economic development. (c) International Conventions and Agreements: None.
(d) International Targets/ Recommended Standards: None.
(e) Linkages to Other Indicators: This indicator is linked to energy prices and to
several indicators of the social dimension, such as income inequality, shares of
households without access to electricity or heavily dependent on non-commercial
energy servicesand energy use relative to income level.
