Unraveling Energy Insecurity In the Home

By Litzy Gastelum Arguelles, Marketing Intern Summer 2020 & Spring 2021

     Patriotism and pride emblazoned the streets of Boston when I first moved to the city of champions. The streets were a kaleidoscope of blue, white, and red as people made their way to a nearby bar or their neighbor’s house to watch a Patriots football game. At first, I didn’t know that this was not an anomaly, New England pride is vibrant and present in the everyday lives of Bostonians. As a marketing intern at All In Energy, I learned that it even existed within energy efficiency conversations. “Massachusetts is proud to be recognized as leading the nation in energy efficiency for the ninth year in a row, and reflects the state’s efforts to reduce energy use and greenhouse gas emissions while saving residents and business money on their energy bills,” Governor Charlie Baker stated in 2019. Unfortunately, while there is a constant effort by community organizations like All In Energy and Massachusetts state legislators to promote energy efficiency, there continue to be disparities in the energy sector that affect minority communities’ wellbeing. 
     Energy insecurity is more complex than the economics behind it. In technical terms, energy insecurity in a household results when the money spent on fuel and electricity is greater than 10% of a household’s income. The financial burden of energy-related costs on a low-income family is one dimension associated with energy insecurity. Late payments on utility bills reflect financial hardship but can also be linked to billing issues, landlord improprieties, and seasonal variations as well as building-level inefficiencies that increased costs. When families fall behind on their utility bills, oftentimes they stay in a constant cycle of playing catch-up because they try to prioritize more important necessities. This within the industry is considered the “heat or eat” dilemma where low-income constituents are made to decide between food and energy, often sacrificing one for the other. 
    Some may argue that income assistance helps outset energy costs and solves the issue of energy insecurity. However, this is not the case. On average, it's reported that monthly bills can be between $100 and 300 dollars, with considerable variations by season and housing type. To put this economic burden in perspective, according to Massachusetts State guidelines in 2012 a household of four receiving public assistance would net $691 in cash assistance, a portion of which would need to be allocated to utility expenses. At $200 per month, utility bills would represent nearly thirty percent of this assistance, and therefore a significant and likely unaffordable expense. This would also render those at the federal poverty line ($23,050 for a family of four in 2012) as energy insecure using the 10 percent threshold. 
This issue is emphasized in energy insecurity disparities when looking at it through race across the commonwealth. A recent study found that the efficiency programs successfully reduced energy consumption statewide between 2013 and 2015, but the demographic analysis found that communities with the lowest participation in Mass Save have, on average, proportionally higher percentages of renters, low- and moderate-income people, and households with English as a second language. Whilst having more energy expenditures and less reach in Massachusetts’ nationally recognized programs, energy insecurity is still a possibility for many underrepresented groups.
    This has become more relevant due to COVID-19. Unemployment and reduced working hours due to the pandemic are statistically associated with all forms of energy insecurity. According to a study done by the peer reviewed scientific journal Nature Energy, there are short-term and long solutions available to address these issues. Additional assistance programs, extensions of state-level protections, and the establishment of a national moratorium on electricity disconnections would prevent household energy insecurity through the duration of the pandemic. In the long term, potential government interventions might include investments in energy efficiency programs to help households afford energy. All In Energy working with Mass Save’s program is an example of an energy efficiency program that is pushing to address disparities in low-income and minority communities. Through community outreach programs, we are supporting immigrant and low-income families access energy efficiency programs by signing up for no-cost home energy assessment which opens the door to access incentives and benefits to reduce the costs of energy and use their saving for their needs. The World Health Organization (2006) affirms that “energy is essential to meeting our basic needs: cooking, boiling water, lighting, and heating. It is also a prerequisite for the good health-a reality that has been largely ignored by the world community.” Therefore, it is the responsibility of the commonwealth to determine holistic solutions to address energy disparities and further increase research in this field. All In Energy is proud to be part of that equation in bettering the lives of communities in the commonwealth and reducing energy insecurity.