More Than 20 Million American Households Can't Afford To Pay Their Electricity Bills As Rates Surge

With US electricity prices surging, more people than ever are struggling to pay their power bills. As per Bloomberg report, more than 20 million American households have fallen behind on their utility bills, i.e. about 1 of every 6 homes, and the amount they owe has doubled since the one before the covid pandemic.

With more people owing more money, utilities are getting more aggressive about cutting off delinquent customers. Many states imposed shutoff moratoriums during the pandemic, but those policies wound down just as record inflation made power and in fact almost everything else, more costly.

That¡¯s going to trigger a ¡°tsunami of shutoffs,¡± Jean Su, a senior attorney at the Center for Biological Diversity, reportedly told Bloomberg.

The basic problem is that electricity is more expensive, with prices up 15% from a year ago, and there's no sign of relief. That¡¯s because power prices are linked to the cost of natural gas, which has more than doubled in the past year and is expected to remain high at least into next year, i.e. 2023.

shutterstock

Meanwhile, making things go bad to worse is climate change, which has triggered extreme heat around the world, driving up power consumption, and power bills, as people seek refuge in air-conditioning. And in many hot regions, cooling isn't just for comfort, as people who lose power during a stifling heat wave can die. While 41 states have some kind of protection against winter shut-offs for exactly this reason, only 19 have similar policies for the intense summer months.

But that help is just a band-aid that masks the underlying issue, according to Mark Wolfe, executive director of the National Energy Assistance Directors Association, Bloomberg report mentioned. Low-income families already face a high energy burden, with a greater portion of their income needed to cover utility bills than wealthier families. For some, electricity is becoming too expensive to afford at all. The bills just aren¡¯t affordable, added Wolfe.

shutterstock

Additional Emergency Funding Needed

Government aid is helping avert some shutoffs, and Congress this month asked for additional emergency funding on top of the $4 billion already set aside for a federal assistance program this year. Many states also have assistance programs, and utilities are generally willing to work with struggling customers. Most will agree not to shut off power to people who have applied for assistance or signed up for some kind of payment plan, as per the Bloomberg report.

Also Read: UK Unveils ?15 Billion 'Cost Of Living' Support Package

For more of such interesting and latest financial news, keep reading Indiatimes Worth. Click here