can be useful, especially when considering disaggregated statistics, but should – at least for a subset of the data – be validate <mark>d by traditional data sources.</mark>

**To operationalize the measurement of energy poverty, Bulgaria could follow the model previously explored in Belgium.** In Belgium, the King Baudouin Foundation has developed an Energy Poverty Barometer, considering the multidimensional nature of energy poverty (Meyer et al., 2018).<sup>46</sup> The barometer considers several complementary measures of energy poverty and considers that different subsets of the population might suffer from different aspects of the overall concept of energy poverty (ibid). The Energy Poverty Barometer considers the following dimensions of energy poverty: measured energy poverty, hidden energy poverty, and perceived energy poverty measured, respectively, by the share of households reporting excessive energy bills compared to available income, restriction in energy consumption below basic needs, and self-reported difficulties to heat the housing adequately.

**In addition, Bulgaria could learn from success stories and challenges identified in other countries, such as France, when operationalizing energy poverty.** The EU Energy Poverty Observatory (EPOV) 47(2019) published a case study outlining France's successfully implemented energy poverty measures. This initiative relied on two complementarity measures: the energy stress indicator, based on household energy expenditure and income ratio, and the indicator on the ability to keep the home adequately warm. The main challenges identified in the case study were little awareness of energy poverty, lack of data, insufficient evaluations of existing energy poverty policies to identify what works and does not work, and lack of coordination between the involved stakeholders.

**Moreover, the chosen indicator tracked to measure progress in the fight against energy poverty should reflect the aspect of energy poverty that the government aims to address.** Suppose the government aims to implement long-term approaches to address energy poverty via renovation programs, for example. In that case, observational indicators about the square meters renovated or the energy efficiency of buildings and consensual metrics on the share of households experiencing leakages might be most appropriate. If governments are most interested in tackling the income component of energy poverty via social protection programs, for example, a measure incorporating total household income might be most appropriate. Similarly, if policymakers wish to address the dimension around low access to high-quality energy, measures that track connectivity to energy might be most suited.

**Regarding expenditure-based approaches, we recommend relating energy expenditure to the measure used to define monetary poverty.** This means that countries should use total household expenditure to scale energy expenditure in the case of relative measures when they also use consumption to define poverty. If their welfare measures rely on income-based approaches, they should relate energy expenditure to household income. Nevertheless, this approach should only be applied if income information from expenditure surveys is reliable. If income is unreliable, researchers and statisticians can explore alternative approaches to combine information on expenditure and

> 46 For more information, see the website: <u>https://kbs-frb.be/fr/barometre-de-la-precarite-energetique-2009-2017</u>

> 47 The European Energy Poverty Observatory (EPOV) initiative receives funding from the European Commission and is executed by a consortium of 13 diverse organizations, including universities, advocacy groups, think tanks, and representatives from the business sector. The University of Manchester leads this consortium. EPOV has several objectives, including enhancing information transparency and policy effectiveness by consolidating diverse data and knowledge sources existing across the EU. Additionally, it aims to offer an easily accessible resource that fosters public engagement and supports well-informed decision-making for local, national, and EUlevel authorities. The Observatory strives for a comprehensive understanding of energy poverty in the European Union and intends to aid various stakeholders in their efforts.

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