Is Spain's energy voucher lighting the way for the poor? A microeconomic evaluation of the Bono Social Eléctrico

Energy poverty refers to the inability of households to afford adequate energy services, with negative impacts on health, well-being, and economic opportunities. In Spain, energy poverty has become an increasing concern, with many low-income households struggling to meet their energy needs despite social protection mechanisms. This paper analyses the effectiveness of the Bono Social Eléctrico (BSE), a Spanish social energy voucher aimed at alleviating energy poverty. Departing from a microeconomic theoretical framework and applying a Stochastic Frontier Analysis (SFA) approach, the study evaluates the gap between actual and potential energy poverty levels using Spanish household panel data from 2021 to 2023. The findings indicate that the BSE contributes to reducing energy poverty, but its effectiveness is constrained by insufficient coverage and limited impact on the poorest households. Education and computer access also play a significant role in addressing energy poverty. Our study suggests policy recommendations to enhance the voucher's targeting mechanisms and improve effectiveness. • Spain has implemented a social energy voucher to alleviate household energy costs. • We propose a new microeconomic framework to analyse energy poverty and its drivers. • We assess the voucher's impact using Spanish household panel data from 2021 to 2023. • The voucher reduces energy poverty, but limited coverage and impact weaken results. • Education and computer access play a significant role in reducing energy poverty.