Household Energy Costs Projected to Rise This Winter | Healthiest Communities Health News

Americans can expect a higher-than-normal spike in household energy costs this winter, according to nonprofit data center USAFacts and the U.S. Energy Information Administration’s Winter Fuels Outlook.

Due to an increase in fuel prices, along with a slightly colder forecast for this winter season, U.S. average household expenditures are expected to increase by 28% for natural gas, 27% for heating oil, 10% for electricity and 5% for propane.

Altogether, according to USAFacts, the forecast projects the second-largest year-over-year increase in per household energy costs in the last eight years.

(The rates of change above are not adjusted for inflation. According to the Bureau of Labor Statistics, the 12-month energy inflation rate as of November was 13.1%.)

Natural gas is used as the primary source of heat for 46% of American households, including 64% of households in the Midwest. This season, the residential price for natural gas is projected to increase 22%, while the average household consumption is expected to increase 5% for those who use primarily natural gas for heat, driving the uptick in projected expenditures.

Another 41% of American households, largely in the South, rely primarily on electric heat. The EIA baseline forecast projects a more modest increase for these households as a result of a 6% increase in the residential price of electricity and 4% higher consumption among households who use electricity as their primary source of heat. Notably, the EIA notes that its projections reflect energy expenditures for all uses – such as to power appliances or lighting – not just heating alone.

A separate EIA report found that the cost of heating oil – the primary heating source for 4% of American households, most commonly in the Northeast – rose 65% from October 2021 to October 2022. Heating oil is a petroleum distillate typically produced entirely from crude oil.

Data from the EIA’s 2020 Residential Energy Consumption Survey indicates that 27% of households across the nation experienced “energy insecurity” – meaning they faced issues related to energy costs such as difficulty paying bills or keeping the home at unsafe temperatures.

On the other hand, just 15% of homes in Vermont were estimated to be energy insecure, as well as 17% in Minnesota and Nebraska, and 18% in Iowa.

According to the survey, energy insecurity is a more pronounced problem for demographic groups including Black (52%), multiracial (46%) and Hispanic (47%) households.