Summer is approaching, but millions of Americans will think twice before turning on their air conditioning units.
The high prices of essential goods, especially food and housing, have made it difficult for many families to cope with the rising cost of their energy bills.
This has contributed to an increase in the number of families with overdue utility payments to nearly 20 million in March of this year, up from 17.6 million the previous year, according to the National Association of State Energy Officials. These families owe a total of $19.5 billion, up from $15.7 billion in March 2022.
In recent years, Americans have faced high prices for natural gas, heating oil, and electricity, along with colder winters and hotter summers in many parts of the country.
Summer electricity bills will remain high
Experts predict that household electricity bills this summer will be similar to or higher than last year. The average cost is expected to be $529, up from $517 last year and $445 two years ago, according to the US Energy Information Administration. This varies by region, with customers in New England paying about $13 more than the national average, while those in parts of the South paying about $8 less.
Less federal assistance available
The peak in overdue bill payments comes at a time when there is less federal funding available for energy assistance.
The Low-Income Home Energy Assistance Program, known as LIHEAP, has about $6 billion in funding for fiscal year 2023, which runs through September. This is down from the $8 billion that Congress provided last year. Additionally, pandemic-related rental assistance money that could have been used for overdue energy bills has also dried up.
Utility companies offer payment plans, but the system is not set up to handle this level of debt. Therefore, a significant increase in utility shutoffs is expected in the coming months.
Some states are trying to help their residents deal with these overdue bills. New York, for example, is providing $672 million to help 478,000 residential customers and 56,000 small businesses pay off their overdue utility bills.
Last fall, California helped 1.4 million residents pay off $647 million in overdue energy bills. It eliminated all debt accumulated by residential customers between March 2020 and the end of 2021.
Source: CNN