In an era of U.S. energy abundance, the persistently high energy bills paid by low-income households is troubling. After decades of weatherization and bill-payment programs, low-income households still spend a higher percent of their income on electricity and gas bills than any other income group. Their energy burden is not declining, and it remains persistently high in particular geographies such as the South, rural America, and minority communities.

This study presents three cost-optimal calculations. The overall aim is to provide a deeper analysis and to provide additional guidance on how to properly implement the cost-optimality methodology in Member States. Without proper guidance and lessons from exemplary case studies using realistic input data (reflecting the likely future development), there is a risk that the cost-optimal methodology may be implemented at suboptimal levels.