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Home Heating Cost Projected to Increase by 10.5%

Lootpress News Staff by Lootpress News Staff
Wednesday, October 2, 2024 6:37 am
Home Heating Cost Projected to Increase by 10.5%

(LOOTPRESS) – As colder temperatures loom for much of the U.S. this winter, home heating expenses are expected to climb by 10.5% on average, according to the National Energy Assistance Directors Association (NEADA). The Northeast and Midwest are forecasted to experience particularly cold winters, driving up costs for households trying to keep warm.

Those relying on electric heating will face the steepest increase, with costs projected to rise 13.6% to an average of $1,208 for the winter season. The rising expense of maintaining and upgrading the electric grid, particularly in the West where wildfires have caused extensive damage, is contributing to these higher costs. In some areas, electric heating prices could soar nearly 23%.

Propane and Natural Gas Costs Rising Too

For households heating with propane, costs are expected to increase by 7.3%, pushing the average winter bill to $1,442. Meanwhile, natural gas users will see a 7.2% rise to $644, with prices stabilizing but expected to climb further as U.S. exports grow.

However, those who heat with oil will catch a slight break. After a costly winter last year, oil heating expenses are expected to rise by only 6.1% this season, to an average of $1,963, thanks to a weak oil market that has lowered prices.

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While many might expect climate change to bring warmer winters, that’s not necessarily the case, according to NEADA’s Executive Director Mark Wolfe. “Extreme cold can still occur even if winters warm overall,” Wolfe said, noting that winter heating costs could remain high despite long-term climate trends.

Millions Falling Behind on Utility Bills

The rising cost of utilities is leaving more households struggling to keep up with payments. As of June, around 21 million households owed a total of $13.5 billion on their electric bills, up from 20.4 million households who owed $12.5 billion the previous year.

Though a drop in natural gas prices helped reduce overall debt on gas bills, more than 17.4 million households — over one in five — were still behind on payments in June, an increase from 15.2 million a year earlier. Utility shutoffs have also risen, with an estimated 3.8 million households experiencing service disconnections during the past fiscal year, up from 3.5 million the year before.

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Federal Assistance Falling Short

Compounding the issue is a reduction in federal assistance for low-income families. Congress provided just $4.1 billion for the Low Income Home Energy Assistance Program (LIHEAP) in the past fiscal year, down from $6 billion the previous year. NEADA has requested $6.1 billion for the upcoming fiscal year, along with an additional $1 billion for emergency aid, to help struggling families keep up with rising utility costs.

“We need to support the millions of families across the country who are struggling to keep up with monthly utility payments,” Wolfe said, urging lawmakers to take action as winter approaches.

As heating bills rise and federal support dwindles, many families are bracing for what could be another difficult winter following an already challenging summer of high cooling costs.

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