Households across the United States are expected to face significantly higher heating bills this winter, driven by colder weather forecasts and rising electricity and fuel prices, according to estimates from a group representing state energy officials.
The average U.S. household is projected to spend nearly $1,000 to heat its home this winter, an increase of about 9.2% compared with last year. Higher prices for electricity and natural gas, combined with increased usage during colder conditions, are expected to push costs higher for millions of residents as winter settles in.
Electricity prices have risen far faster than overall inflation in recent years. Since 2021, the average cost per kilowatt-hour has increased by nearly 30%. For a typical household using about 1,000 kilowatt-hours per month, the average electric bill rose about 7% in September from a year earlier, reaching roughly $181, according to federal data.
Households that rely on electric heating are projected to see the steepest increases, with heating costs expected to rise by an average of 12.2% this winter. Those using natural gas are expected to experience an average increase of 8.4%. Rising fuel costs and higher demand are contributing factors across regions, though increases are expected to be most pronounced in colder areas of the Northeast.
The growing burden comes as federal assistance for low-income households has declined. Congress has allocated about $4 billion this year for the Low-Income Home Energy Assistance Program, down from $6.1 billion two years ago. Energy officials estimate that only about 17% of households eligible for the program are currently enrolled, leaving many vulnerable residents without help as heating bills rise.
As costs increase, utilities have continued to disconnect customers who fall behind on payments. Service shut-offs affected about 3.5 million accounts in 2024, up from roughly three million the previous year, and are expected to reach four million accounts this year. Energy advocates warn that some households may keep their homes at unsafe temperatures or go without heat at times in order to manage costs.
Home energy expenses have climbed steadily as utilities invest in grid upgrades, respond to extreme weather events, and prepare for rising electricity demand tied to data centers and other high-energy uses.
Source: CNN