Heating costs are expected to increase this winter, particularly for those who use electricity to heat their homes. The National Energy Assistance Directors Association predicts that U.S. home heating expenses will rise by 8.7% to an average of $941 for the season. This is mainly attributed to the rising electricity prices and forecasts of colder weather in the Midwest and Northeast. A winter storm in these regions has caused casualties, travel disruptions, and power outages for hundreds of thousands of households.
Households relying on electricity for heating may see the largest spike in bills, with an expected increase of 14.2% to an average of $1,189, up from $1,040 last winter. The rise in electricity costs was 3.1% in the past year, exceeding the general inflation rate of 2.7%. Families who already faced high electric bills due to summer heat are now dealing with increased winter expenses.
The Low Income Home Energy Assistance Program received $3.7 billion in funding from an appropriations bill signed by President Joe Biden, falling short of the requested $6.1 billion. The program, originally designed to assist with winter heating costs, has been stretched thin by increased demand for air-conditioning aid during hotter summers. Advocates argue for more funding to meet evolving needs and prevent high consumer debt levels that could result in power shutoffs and difficult choices between utility bills and essentials like food and medicine. Despite calls for increased funding, there has been no new influx of resources from policymakers so far.
“Once again, protect our energy jobs, and bring down the cost of living for working families,” spokeswoman Karoline Leavitt said in a statement.
Already, NEADA estimates that 1 in 6 households are behind on their utility bills. The total amount of money owed in arrears has swelled by roughly 30% over the past 12 months for electricity and natural gas customers, reaching around $21 billion by the end of September. NEADA attributes much of the debt increase to historically high home-cooling expenses over the summer.
Midwestern households are expected to experience the largest utility bill increases this winter, rising by an average of 14.6% for all energy sources since last season, according to NEADA. Bills in the Northeast are projected to rise less steeply, by 5.1%, while customers in the South and West should see the smallest upticks, at 1.6% and 3.2%, respectively.
Experts suggest several ways consumers can reduce their heating costs. The website https://www.energystar.gov/saveathome offers a rebate finder to help locate any savings local utility providers are offering. It also outlines tax credits for energy-saving home improvements, including up to $3,200 for specific upgrades such as installing a heat pump or adding new windows or insulation, under President Biden’s signature Inflation Reduction Act.
The Energy Department estimates that insulation improvements and sealing leaks around doorframes, windows, ductwork, and other areas where heat can escape can save 11% a year on home energy costs. It also recommends relocating thermostats away from drafty windows or direct sunlight to maintain a consistent baseline temperature and lowering them by 7 to 10 degrees Fahrenheit when asleep or away.
Agency officials highlight that water heating is typically the second-largest energy expense, so setting your water heater to 120 degrees — any higher could result in additional costs of several hundred dollars per year — and insulating any exposed hot water pipes with foam sleeves are recommended. For those with a dishwasher, consider forgoing the drying cycle and allowing plates to air-dry with the door slightly open. When it comes to washing machines, water heating accounts for most of the system’s energy use; simply switching from the hot setting to warm can reduce energy consumption by half.
