This 2023 may be considered a mild winter season, but Americans are still struggling to make ends meet with their energy bills.
Higher Energy Bills: Americans Still Struggling Despite Winter Season (PHOTO: Wall Street Journal)
Winter Energy Bills
On Monday, the policy organization National Energy Assistance Directors Association reveal that those households who are receiving energy assistance this winter season increased to an estimated 1.3 million, from 4.9 million to 6.2 million, the enormous one-year boost since 2009 and the highest total rate of applications since 2011.
The energy assistance application is created through the federal social services Low Income Home Energy Assistance Program in each state. Mark Wolfe, National Energy Assistance Directors Association’s executive director stated that “These numbers don’t even account for possible increases in applications this summer to help families pay for air-conditioning as they deal with rising temperatures due to climate change.” Wolfe also said that if present trends still escalating then it will hit record levels of applications this year.
Americans Are Struggling With Energy Bills
American households are struggling to pay high energy bills along with other rising costs for essential goods, like food and rent, that is increasing at a faster rate than the overall rate of inflation. Grocery prices increased 10.4% annually in December and rent expenses grew about 7.5%, while overall inflation increased by 6.5%.
Energy prices soared last year as demand jumped because economies around the world reopened after the COVID-19 pandemic, even as energy supplies dwindled after Russia invaded Ukraine. Russia is one of the largest energy producers in the world.
The energy bills assistance association claims that home heating expenses spiked to a level in 10 years, and on average, households will pay 12.7% more for home heating this winter season. Heating oil is expected to rise the most from last year, up 25.9%, or nearly $500 more than the 2021-22 winter heating season. Natural gas was forecast to rise 14.5% or more than an additional $100, the energy assistance association said.
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