This paper aims to critically analyse and compare the definition and measurement of energy poverty reflected in the national policy strategies in Portugal and Spain and propose recommendations for their enhancement. The analysis is supported by a systematic literature review of indicators in the Iberian context. Results highlight that both definitions can benefit from broadening the scope and increasing the representativeness of energy services and types of vulnerability. Measurement can be enhanced using available data and indicators for increasing comprehensiveness, reducing redundancy, and considering depth and persistence. Higher effectiveness in energy-poor households’ identification requires increased indicator intersectionality and alternative indicators.