Energy as a Fundamental Right ~ EFRI ~ Simulation Model

The EFRI Simulation Model aims to answer the question: > “What would be the optimum residential free electricity amount which would reduce the energy poverty issues most?”

Background

Electricity has become a basic need for almost every individual considering its effect on health, security, and even education. Many low-income households suffer from energy insecurities, reduce basic needs to afford energy bills, and live in in unhealthy conditions. Although social tariffs and energy assistance programs alleviate these issues to a certain extent, a considerable number of households still suffer from energy poverty. Additionally, due to the interdependent nature of the electricity market, the excess electricity usage of other households increases the electricity unit prices and exacerbate the energy poverty issues.

As a solution, a certain amount of residential electricity can be provided for free to the households. The examples of Flanders, Belgium, and Delhi, India are the first implementations of such a policy. On the other hand, it is very difficult to determine the optimum amount of free electricity considering many socio-economic parameters such as energy consumption habits, electricity prices, number of residents and income levels.

The Simulation Input Data

The input for the EFRI simulation should include at least the following 4 columns:

• The Number of Residents in a Household
• Annual Household Income
• Annual Energy Consumption
• Energy Unit Price

The following columns and others can be added optionally:

• Statistical Multiplier: Showing how many households are represented by a specific data row
• Location: Can be used to determine energy unit price
• Energy Assistance: Can be used for filtering the households who do not receive any financial aid

The Simulation Output Data

All the EFRI simulation output tables include following 9 columns:

- EPR: Free Electricity per Resident (kWh): Annual free electricity amount to be provided for each resident of a household - EPH: Free Electricity per Household (kWh): Annual free electricity amount to be provided for each household - PSIM: Simulated Residential Electricity Unit Price (cent): The calculated new electricity unit price to compensate the simulated free electricity amounts - RIIAVE: Average Ratio in Income – Whole Population: The average share of electricity expenditure in income for all the households in the population - RIIAVELOW: Average Ratio in Income – Lowest Income Quintile: The average share of electricity expenditure in income for the lowest-income households - RIIMED: Median Ratio in Income – Whole Population: The median share of electricity expenditure in income for all the households in the population - RIIMEDLOW: Median Ratio in Income – Lowest Income Quintile: The median share of electricity expenditure in income for the lowest-income households - NPR: Number of Energy Poor Residents: Number of residents whose share of electricity expenditure in income is more than 10% - NPH: Number of Energy Poor Households: Number of households where the share of electricity expenditure in income is more than 10%

> Let's find optimum free energy amounts for a future without energy poverty ...

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