This winter many families will have a major strain on their household budget: soaring utility bills. A dramatic rise in energy prices in the U.S. is causing utility bills to soar, with many left wondering, what is driving the rise and how long will this last? The federal government expects the price of electricity will continue to rise into 2023. The rising utility bills are being driven by the surge in the price of natural gas, which generates about 40% of the United States' electricity.
Baby it’s cold outside….Utility Costs Are On The Rise
This winter many families will have a major strain on their household budget: soaring utility bills.
A dramatic rise in energy prices in the U.S. is causing utility bills to soar, with many left wondering, what is driving the rise and how long will this last? The federal government expects the price of electricity will continue to rise into 2023.
The rising utility bills are being driven by the surge in the price of natural gas, which generates about 40% of the United States' electricity. The U.S. Energy Information Administration expects this surge to last through the winter.
But what is behind this surge, and how does it impact you?
There's much less natural gas in the world these days because of Russia. For years, Russia supplied Europe with cheap natural gas to power its factories and heat its homes.
But after the West imposed sanctions for the war in Ukraine, Russia slashed its supplies, effectively weaponizing its natural gas. While the global supply has dropped, demand has remained high. In the U.S., half of homes use natural gas for heating or cooling.
Prices are expected to keep climbing. Even though the country's inventory of liquid natural gas is low, this hasn't stopped the U.S. from exporting large amounts to Europe to help fill the void left by Russia. Your bills could go up, a lot.
The National Energy Assistance Directors Association (NEADA) estimates the average family may pay more than $1,200 to heat their home this winter. The good news is that even if it’s an extremely cold winter, the United States is not going to run out of natural gas. That’s in large part because America is the world’s leading producer of the fuel. And while natural gas inventories are lower than usual, they are not at alarming levels.
Folks are already feeling the stress of their budgets being stretched too far, especially with the cost of most consumer products increasing. (When did the price of a dozen eggs surge to $5.99?) For those that are really struggling, contact your state’s Department of Human Services. There are programs in place to help eligible low-income households pay their heating bills through federal grants.
Follow the links below for more information.
Low Income Home Energy Assistance Program (LIHEAP) – Rhode Island
Low Income Home Energy Assistance Program – Massachusetts
https://www.mass.gov/how-to/apply-for-home-heating-and-energy-assistance
The Connecticut Energy Assistance Program (CEAP) – Connecticut
It doesn’t have to cost a lot of time, money, or effort to lower utility bills.
Here are some tips from the U.S. Department of Energy and various New England utility companies on how you can keep heating costs down this winter in your home.
If you're looking for more ways to cut down on utility costs, a quick google search on “how to lower your utilities bills” will provide you with plenty of other ways to save money. Also, utility providers will often conduct a home energy audit, sometimes for free, and can identify additional ways to reduce your energy usage.
Many Americans may be planning on using space heaters as a quick fix this winter, but experts warn these portable devices can cause massive fires if left on for long periods of time, and can use up lots of electricity. Which again, is also expected to become more expensive this winter.
Although the rising costs are out of our hands, we can still do a lot to help reduce our costs. Even if it means lowering the heat, added an extra blanket to your bed, or putting on a warm sweater. Brace yourself, it’s going to be a tough winter.
Remember, good advice is only a text, phone call, or email away. Keep safe and stay warm!
