Heating costs are expected to increase once again this winter, particularly for households that rely on electricity for warmth. 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 rise is attributed to the continual escalation of electricity prices, alongside forecasts of colder temperatures in the Midwest and Northeast. Some areas in these regions are currently facing a severe winter storm, resulting in casualties, travel disruptions, and power outages for many homes.
Households using electricity for heating, rather than more common sources like natural gas or heating oil, are likely to see the most significant increases. Their bills are projected to jump by 14.2% to an average of $1,189, up from $1,040 last winter. Data indicates that electricity costs rose by 3.1% in the twelve months leading up to November, surpassing the overall inflation rate of 2.7%.
Mark Wolfe, Executive Director of NEADA, expressed concern for families facing high electricity bills following a scorching summer and now anticipating higher winter costs. The federal Low Income Home Energy Assistance Program (LIHEAP), which offers aid to eligible households, was allocated $3.7 billion in September, falling short of the $6.1 billion requested by LIHEAP officials. This funding gap poses challenges in meeting the increasing demands for assistance due to shifting weather patterns and extreme climate events.
Wolfe emphasized the critical need for additional resources to support households struggling with energy costs, warning of potential power shutoffs and difficult choices between utility payments and essentials like food and medicine. Despite calls for increased funding, policymakers have yet to address the growing needs of programs like LIHEAP.
The Trump administration’s transition team did not provide specific comments on LIHEAP funding but indicated intentions to reduce energy expenses for consumers. The future funding landscape remains uncertain, with advocates urging for a reevaluation of support levels to address the evolving challenges faced by low-income households.
“Once again, protect our energy jobs and bring down the cost of living for working families,” spokeswoman Karoline Leavitt emphasized in a statement. The National Energy Assistance Directors’ Association (NEADA) has estimated that one in six households is currently behind on their utility bills. The total amount of outstanding debt has surged by approximately 30% over the past year for both electricity and natural gas customers, reaching a staggering $21 billion by the end of September. NEADA attributes much of this increase in debt to the exceptionally high costs of home cooling during the summer months.
Households in the Midwest are anticipated to bear the brunt of rising utility bills this winter, with an average increase of 14.6% across all energy sources compared to the previous season, as per NEADA’s projections. Conversely, the Northeast is expected to see a more modest increase of 5.1%, while customers in the South and West should experience the smallest upticks at 1.6% and 3.2%, respectively.
Experts suggest several strategies for consumers to mitigate their heating costs. The website https://www.energystar.gov/saveathome provides a rebate finder tool to help individuals locate any savings being offered by local utility providers. Additionally, the site outlines tax credits for energy-efficient home upgrades, including incentives of up to $3,200 for specific improvements such as heat pump installations, new windows, or enhanced insulation, all under President Biden’s Inflation Reduction Act.
The Department of Energy highlights that bolstering insulation and sealing up leaks around doorframes, windows, ductwork, and other areas prone to heat loss can lead to significant savings of up to 11% annually on home energy expenses. They recommend adjusting thermostat placement away from drafty windows or direct sunlight to maintain consistent temperatures and lowering it by 7 to 10 degrees Fahrenheit during periods of sleep or absence.
Notably, water heating represents a substantial portion of most households’ energy costs. Experts advise setting water heaters to 120 degrees Fahrenheit, as exceeding this temperature could result in several hundred additional dollars in expenses annually. Insulating exposed hot water pipes with foam sleeves is another cost-effective measure. For those with dishwashers, opting to skip the drying cycle and allowing dishes to air dry with the door slightly open can lead to savings. Furthermore, in washing machines, the bulk of energy usage stems from water heating. Transitioning from hot to warm water settings alone can halve the energy consumption of the system.
By adopting these energy-saving practices and taking advantage of available rebates and tax credits, consumers can not only reduce their utility expenses but also contribute to the preservation of energy jobs and the alleviation of financial burdens on working families.”
