Home heating costs this winter will remain unaffordable for millions of lower-income families across the nation, according to projections released Oct. 2 by the National Energy Assistance Directors Association (NEADA).
“In the short-term, we need to support the millions of families across the country who are struggling to keep up with monthly utility payments,” said NEADA Executive Director Mark Wolfe. “Long-term, it is critical that federal and state officials fund weatherization and retrofits for low-income households, so that low-income families are protected from both winter weather conditions and increasingly extreme summer temperatures and from the global energy market’s price fluctuations.”
NEADA, which represents the state directors of the Low Income Home Energy Assistance Program (LIHEAP), released its projections of home heating costs for the upcoming winter heating season, estimating that prices for home heating this winter on average are estimated to increase by about 10.5 percent from $889 to $982 compared to last year’s winter heating season.
This is due to expected colder winter weather in the Northeast and Midwest states, said NEADA, which expects the largest change will be for families using electricity to heat their homes, increasing by 13.6 percent from $1,063 to $1,208.
Electric prices are increasing due to the continued high cost of maintaining and upgrading the grid and colder weather leading to increased consumption, according to the association.
In fact, the September 2024 Consumer Price Index says that electricity is the second fastest growing index.
In addition, NEADA predicts higher prices for natural gas, one of the main fuels used in electricity production, primarily due to increased exports of liquified natural gas, with the average cost increasing from $601 to $644.
For those using heating oil, prices are estimated to increase by 6.1 percent from $1,851 to $1,963, reflecting increased usage due to colder weather in the Northeast, said NEADA.
Households heating with propane can expect a 7.3 percent increase in expenditures, from $1,343 last winter to $1,442 this year for similar reasons, the association said.
At the same time, NEADA said that utility arrearages remain high with roughly one out of six households behind on paying their utility bills.
For instance, among those using electricity, arrearages increased from $12.5 billion in June 2023 to $13.5 billion in June 2024. Comparatively, for those using natural gas, arrearages declined from $7.4 billion to $6.1 billion, in part because of the decreased cost of natural gas during this period, said NEADA.
To help families pay their increasingly high home energy bills, NEADA has asked Congress to increase funding for LIHEAP from $4.1 billion to $6.1 billion, the same level of funding that was provided in fiscal year 2023.
NEADA also has asked Congress to provide an additional $1 billion for emergency assistance, which would help to provide supplemental LIHEAP assistance for some of the nation’s poorest families.
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