As winter approaches, homeowners are bracing for a significant rise in heating costs. According to a recent report from the NEADA, which is the National Energy Assistance Directors Association, home heating costs in the U.S. are expected to increase by 10.5% this winter compared to last year.
What will this increase in the cost of heating mean?
This jump will bring the average seasonal bill to $982, up from $889 in 2023. The silver lining? This increase isn’t as steep as the hikes we saw in 2021 and 2022.
Colder weather in the Northeast and Midwest is a major factor behind the higher average bills. Households that rely on electricity for heating will be hit the hardest, with an estimated 13.6% increase in their bills, reaching $1,208.
- High maintenance costs
- Upgrades to the grid
- Environmental factors such as forest fires in Western states
These factors collectively contribute to the rising costs, particularly impacting those regions that have faced significant environmental challenges.
As winter approaches, energy prices are expected to jump by a staggering 22.8%, according to recent reports.
Heating Costs on the Rise
Every form of heater is anticipated to see an increase in costs this winter. Here’s a breakdown of what to expect:
- Propane: An average increase of 7.3%, reaching approximately $1,442.
- Natural Gas: Users can expect a 7.2% hike, bringing average costs to about $644.
- Oil Heaters: A 6.1% rise, totaling around $1,963. This is an improvement compared to last year when prices were surging.
Impact on Households
The higher energy bills come at a time when a growing number of people are struggling to afford their utility payments. The National Energy Assistance Directors Association (NEADA) has urged Congress to take action.
Call for Increased Assistance
NEADA is advocating for an increase in funding for the Low Income Home Energy Assistance Program (LIHEAP) from $4.1 billion to $6.1 billion, matching last year’s provision. Additionally, they are requesting $1 billion to be earmarked for emergency assistance to support the nation’s poorest families.
“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 Mark Wolfe, executive director of NEADA.