Brace your wallet to stay warm this winter: these households expected to pay more than others

Heating homes in the U.S. is set to get more expensive again this winter. The National Energy Assistance Directors Association (NEADA) estimates households will pay an average of $976 for the season – up 7.6% from last year.

The squeeze comes as many families are still recovering from steep summer electricity bills and high costs for groceries and health insurance. Yet the main federal program designed to help, the Low-Income Home Energy Assistance Program (LIHEAP), is holding steady at roughly $4 billion, unchanged for two years.

Assistance demand rising

Community organisations say they are already struggling to keep up. “We’re busier than ever,” Charles Lanier, who runs the Hunting Park Neighborhood Advisory Committee in Philadelphia, told CNN, adding that many residents are hundreds or even thousands of dollars behind on their utility bills.

In Delaware, Sofya Mirvis, chief operating officer of the Energy Coordinating Agency, said to the same network that her office has received “hundreds of applications” for aid before the season has even begun.

Electric heating users hit hardest

Households relying on electric heat will feel the sharpest pinch. NEADA projects an average winter bill of $1,205, up more than 10%, with parts of the South seeing increases above 20%. Analysts point to AI data centres and costly grid upgrades as drivers of rising power prices.

Midwest braces for gas hikes

Natural gas users – about 60 million households – will also see higher bills. NEADA forecasts an 8.4% increase to $693, with Midwesterners facing hikes of more than 16%.

Oil and propane offer a rare break

Roughly 11 million homes using heating oil or propane are likely to spend less, with prices expected to fall 4% and 5% respectively.

“Customers should be prepared for this being a new normal,” Mark Wolfe, NEADA’s executive director, told CNN. Since 2021, heating costs for electricity have risen 31% and natural gas nearly 27% – trends he said show little sign of reversing.

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