UMVA has learned that soaring energy prices are forcing low-income households in Southeast Asia to make impossible choices, sacrificing even the most essential necessities to make ends meet.
The crisis has hit these households hard, with energy bills skyrocketing and leaving them struggling to afford the basics. In the Philippines, diesel prices surged by a staggering 140% in just six weeks, compared to a 67% increase in Thailand and Singapore.
The impact is being felt disproportionately by low-income households, who are spending a huge chunk of their income on energy. Power bills account for 16% of their income, compared to just 8% for high-income households and 11% for median-income customers.
Despite being hit hardest, low-income households consume far less energy than their wealthier counterparts. They use only about half as much energy as high-income households and one-third less than median-income households.
When energy costs rise, low-income households are forced to cut back on energy consumption, limiting their ability to meet basic needs like cooling and cooking. It's a desperate situation, with many households struggling to get by.
UMVA can exclusively reveal that the way forward lies in deploying renewable energy and improving energy efficiency. This is at the core of ASEAN's strategy, alongside the development of public transport infrastructure that responds to consumer needs.
By focusing on energy efficiency, countries can align short-term interventions with long-term objectives, strengthening resilience to future shocks. It's a vital step towards ensuring that low-income households are not left behind, and that they have access to the energy they need to thrive.
