Image by Elizaveta Maximova from Pixabay
The largest change is for families using electricity to heat their homes increasing by 13.6% from $1,063 to $1,208. Electric prices are increasing due to continued high cost of maintaining and upgrading the grid and colder weather leading to increased consumption. In fact, electricity is the second fastest growing index in the September 2024 Consumer Price Index. In addition, NEADA predicts higher prices for natural gas, one of the main fuels used in electricity production, primarily due to increased exports of liquified natural gas with the average cost increasing from $601 to $644.
For those using heating oil, prices are expenditures are estimated to increase by 6.1% from $1,851 to $1,963, reflecting increased usage due to colder weather in the Northeast. Households heating with propane can expect a 7.3 % increase in expenditures, from $1,343 last winter to $1,442 this year for similar reasons.
In order to help families pay their increasingly high home energy billsNEADA has asked Congress to increase funding for LIHEAP from $4.1 billion to $6.1 billion, the same level of funding that was provided in FY23. In addition, NEADA has asked Congress to provide an additional $1 billion for emergency assistance, which would help to provide supplemental LIHEAP assistance for some of the nation’s poorest families
In the short-term, we need to support the millions of families across the country who are struggling to keep up with monthly utility payments,” said Mark Wolfe, Executive Director of NEADA. “Long-term, it is critical that federal and state officials fund weatherization and retrofits for low-income households, so that low-income families are protected from–both from winter weather conditions and increasingly extreme summer temperatures and from the global energy market’s price fluctuations.
Utility Arrearages Remain High: For those using electricity, arrearages increased from $12.5 billion in June 2023 to $13.5 billion in June 2024 while those using natural gas, arrearages declined from $7.4 billion to $6.1 billion, in part because of the decreased cost of natural gas during this period. About one out of six households are behind on their utility bills.
Tables illustrating average cost of home energy nationally and by region as well as arrearage data are shown here
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The National Energy Assistance Directors Association (NEADA) represents the state directors of the Low Income Home Energy Assistance Program (LIHEAP) and serves as the program’s representative to the Federal government as well as providing training and educational programs.
Source: NEADA
