Even though this winter is regarded as warm winter, more Americans are still struggling with their energy bills.
In the previous 12 months, more than one-third (33.9%) of American households report that they delayed or cut necessities like food or medicine to pay an energy bill. Nearly a quarter (23.1%) of American households say they haven’t been able to pay their entire energy bill in the last 12 months.
What’s your neighbor paying for electricity? What’s the average electric bill of a business in Texas? Or Pennsylvania? Where is it more expensive to live — the southeast or southwest? We’ve analyzed the numbers (electricity rates broken down by state/month for the first part of 2016) and came up with answers to those questions — plus more!
A recent Bank of America survey estimates that 20% of American families skipped or paid their electricity bill late in the previous month. Unsurprisingly, families making $50,000 or less have the hardest time paying for rising energy prices.
The Russia-Ukraine war’s increased energy costs are partially to blame for the late or missed payments, according to BofA. According to the data, customer utility bills increased by roughly 16% in August compared to the same month last year.
LIHEAP Application: Energy Assistance Up To $1,200
The National Energy Assistance Directors’ Association (NEADA), the primary educational and policy organization for state directors of the Low Income Home Energy Assistance Program (LIHEAP), wants congressional leaders to add another $5 billion to the Build Back Better Act so that LIHEAP can help Americans cover rising energy-related costs.
According to the policy group National Energy Assistance Directors Association, the number of households receiving energy assistance this winter increased by an estimated 1.3 million, from 4.9 million to 6.2 million. This is the largest one-year increase since 2009 and the highest total rate of applications since 2011.
Each state’s Low Income Home Energy Assistance Program is where individuals can apply for energy assistance.
Mark Wolfe, National Energy Assistance Directors Association’s executive director said that these figures don’t even take into consideration the potential rise in applications this summer to assist families with financing air conditioning as they cope with the warmer temperatures brought on by climate change.
Why do Americans have trouble paying their energy bills?
High energy bills and other growing expenses for necessities like food and rent are making it difficult for families to keep up with inflation. These prices are rising faster than the rate of inflation as a whole. While overall inflation jumped by 6.5% in December, rent increased by around 7.5% and food prices increased by 10.4% yearly.
Energy costs increased last year as demand increased as economies all over the world recovered from the COVID-19 epidemic and supplies decreased as a result of Russia’s invasion of Ukraine. One of the world’s top producers of energy is Russia.
The energy assistance association reported that the cost of home heating is at its highest point in ten years. The cost of home heating will increase by 12.7% on average for households this winter. The biggest increase from the previous year is anticipated for heating oil, up 25.9%, or about $500 more than the winter heating season of 2021–2022. The energy assistance association forecasted a 14.5% increase in natural gas prices or a price increase of more than $100.
How far behind on their utility bills are Americans?
According to the National Energy Assistance Directors Association (NEADA), as reported by Bloomberg, more than 20 million households, or roughly 1 in 6 American homes, are currently behind on their power bills.
About 20.8 million households, or one in six, had average debts of $791, a little increase from the average debt of about $783 in June 2022.
Families around the country owe over $16.6 billion in gas and electric bills.
Read More: Renewable Energy Tax Credit: Taxpayers May Get Up To $8,000 If They Fill Up Form 5695
