Commentary on Sections Meaning of extreme fuel poverty Section 4
39.Section 4 defines the term “extreme fuel poverty”. This forms part of both the 2040 targets and the interim targets. The test for whether a household is in extreme fuel poverty is largely the same as the test for whether it is in fuel poverty other than that the threshold is different: for extreme fuel poverty, the cost of meeting the household’s assessed fuel needs must amount to more than 20% of the net income that the household has after it has paid its housing costs (rather than the 10% which is required for fuel poverty). The rules set out in section 3(2) to (10) apply, meaning that any adjustments to the defined terms in section 3(10) would carry through to this definition.