Rising Home Heating Costs Will Be ‘Devastating’ for Some
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Households preparing for winter heating season may also need to prepare for higher energy bills. A new report from the National Energy Assistance Directors Association (NEADA) projects that the average U.S. household will spend about $995 to heat their home this winter—an increase of 9.2%, or roughly $84, compared with last year. NEADA notes that the jump is nearly three times the current inflation rate.
Costs are expected to rise unevenly depending on heating type. Homes that rely on electricity could see bills climb by about 12.2%, while those using natural gas may face an 8.4% increase. According to the New York Times, the higher expenses are being driven by rising electricity and gas prices, along with forecasts calling for colder-than-normal conditions in parts of the country.
At the same time, federal assistance is declining. Funding for the Low-Income Home Energy Assistance Program has dropped to $4 billion this year, down from $6.1 billion two years ago. Only about 17% of households eligible for the program currently receive help. NEADA executive director Mark Wolfe warned that while the increases may seem manageable for higher-income families, they are “devastating” for households already struggling, pushing many deeper into utility debt and closer to service shutoffs. The organization reports that utilities disconnected service to 3.5 million accounts in 2024, a figure that could climb to 4 million this year.
Rising energy costs have been building for several years as utilities invest heavily in grid upgrades following extreme weather events and wildfires, address long-delayed maintenance, and prepare for increased electricity demand from data centers supporting artificial intelligence. Since 2021, residential electricity prices have risen nearly 28%, according to NEADA. The Energy Information Administration reports that a typical household using 1,000 kilowatt-hours per month paid about $181 in September, up 7% from the same period last year.
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