Americans Already Struggling to Pay Bills Amid Inflation Brace for a Surge in Winter Heating Costs

Americans Already Struggling to Pay Bills Amid Inflation Brace for a Surge in Winter Heating Costs
A homeless man rests above a warm air vent near the White House during a winter storm in Washington, D.C., on Jan. 13, 2019. Brendan Smialowski/AFP via Getty Images
Naveen Athrappully
Updated:
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With the winter season only a few weeks away, Americans are facing the prospect of having to pay high heating costs in order to stay warm, something which many believe will add pressure on people who are already struggling with elevated inflation rates.

According to Mark Wolfe from the nonprofit National Energy Assistance Directors Association (NEADA), around one in six households are estimated to be behind paying their utility bills following a hot summer that forced them to keep air conditioners running for longer than usual. Households now are being forced to balance energy bills against the rising prices of food, gas, and medicine. “We’re looking at a potential public health crisis,” Wolfe said to USA Today.

The NEADA estimates that the average cost of home heating will rise by 17.8 percent this winter compared to the last—jumping from $1,025 to $1,208. This will be the second straight year of a major price increase.

Between the winter seasons of 2020–21 and 2022–23, the cost of home energy is calculated to rise by 36 percent. Experts believe higher heating costs will put at risk older people with fixed incomes, those who are sick, and the very young.

A survey by LendingClub published last month found that one in six Americans who were living paycheck to paycheck and facing difficulties paying their monthly bills noted significant increases in the prices of utilities during the previous 12 months.

In September, the NEADA sent a letter to congressional leaders seeking a supplemental increase of $5 billion for the Low Income Home Energy Assistance Program (LIHEAP) to help cover the higher cost of home heating and cooling.

“About 20 million families now owe on average about $16 billion to their local utilities, or about $800 per family, up from about $8 billion, or $400 per family, prior to the start of the pandemic,” the letter stated.

The Northeast Situation

Households in the Northeast regions are expected to shoulder the highest energy bills in decades this coming winter.

In New York, for example, heating-oil deliveries have hit their priciest-ever level. In New England, stockpiles of heating oil and diesel are only a third of the normal levels. In Connecticut, retailers are reportedly rationing heating oil.

“It’s going to be pretty bad,” Marcus McGregor, head of commodities research at Conning Inc., told Fortune. “Diesel, heating oil, and natural gas prices are through the roof. When you’re on a fixed salary, how does it impact your overall budget? It has to be bad.”

Republicans have blamed the tight energy situation facing America on the policies of the Biden administration, including scrapping the Keystone pipeline, ending certain fuel subsidies, and doing away with a significant amount of new oil drilling leases.

The Republicans insist that Washington must focus on reimplementing the Trump administration’s energy independence policy.

Officials from the oil industry have also indicated that the Biden administration’s actions have created an environment that is discouraging new investments in oil technologies and refineries.

Naveen Athrappully
Naveen Athrappully
Author
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.
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