Households bracing for winter may want to brace for a hit to their wallets, too. A new analysis from the National Energy Assistance Directors Association (NEADA) estimates the typical US household will shell out an average $995 to heat their home this winter, a jump of 9.2% (or $84) from last year. That's about three times the overall rate of inflation, a NEADA press release points out. Those relying on electric heat face an estimated 12.2% increase, while natural gas users are looking at an 8.4% rise. The squeeze comes from two directions: pricier electricity and gas, plus forecasts for colder-than-usual weather in parts of the country, reports the New York Times.
At the same time, federal help is shrinking. Funding for the Low-Income Home Energy Assistance Program sits at $4 billion this year, down from $6.1 billion two years ago; only about 17% of eligible households participate in the program and currently receive aid. "These increases may not sound dramatic to higher-income households, but for families already struggling, they are devastating," NEADA executive director Mark Wolfe said of the higher bills, warning that millions are being pushed deeper into utility debt and closer to disconnections. The group says utility shut-offs hit 3.5 million accounts in 2024 and could reach 4 million this year.
Higher home energy costs have been building for years as utilities pour money into grid upgrades after extreme weather and wildfires, catch up on deferred maintenance, and prepare for a surge in electricity demand from AI data centers. Since 2021, residential power prices per kilowatt-hour have climbed 27.9%, per the press release. The Energy Information Administration says a typical household using 1,000 kilowatt-hours a month paid about $181 in September, up 7% from a year earlier.
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