While energy poverty has received increasing policy focus in Europe, in Latin America, energy poverty has only recently emerged in the public agenda. Although energy efficiency policies have been implemented in some countries in the region, these typically lack an understanding of the complexities related to energy poverty. In southern Chile, the case study of this article, energy efficiency interventions have been focussed on tackling air pollution from residential firewood combustion. This approach fails to consider the energy poverty condition of households such as the lack of equitable access to high-quality energy services and the cultural aspects of firewood use and preference. This not only hinders efforts around energy efficiency but also in overcoming the environmental problem (i.e. air pollution). Therefore, the concept of energy poverty in middle-developed countries such as Chile needs reframing to have a better contextsensitivity and cultural understanding of this phenomenon.The concept of energy poverty in this article is understood as a context-sensitive three-dimensional approach that considers quality, access, and equity giving special importance to local energy cultures. This understanding is fundamental to foster a just energy transition and re-scope the air pollution problem. To do so, we examined the economic and political backdrop of energy poverty in south Chile to discuss the sitespecific sociocultural factors that must be recognised and included in the energy efficiency policies for developing effective and more responsive local solutions to energy poverty and air pollution. We argue that local energy culture has turned into an air pollution problem that is being tackled by policies that do not consider, for example, the multifunctionality of heating and cooking appliances, the habits related to indoor thermal comfort and the whole culture around firewood use embedded in the everyday life in southern Chile.