Households that heat their residences with electricity could see a 10.2% increase in their winter heating bills to an average of $1,205 this year, up from $1,093 last winter.
According to a forecast from the National Energy Assistance Directors Association (NEADA), this increase is due to electricity prices that are rising more than twice as fast as the overall inflation rate – a situation attributed to utility investment in transmission and distribution systems, the rising cost of natural gas (a primary fuel for power generation) and rapid growth in large data centers that created increased demand for electricity.
NEADA is also predicting higher natural gas costs, with the average household gas bill increasing from $639 to $693, driven by higher wholesale gas prices and strong LNG export demand. In comparison, households using heating oil are expected to see a 4% decrease in winter expenditures (from $1,515 to $1,455), while propane users will likely see a 5% decrease (from $1,316 to $1,250), the result of softer petroleum prices and the easing of last winter’s supply constraints.
“Arrearages for electricity and natural gas are also increasing,” said NEADA in a statement. “Since Dec. 31, 2023, household energy arrearages have risen by about 31%, from approximately $17.5 billion to $23.0 billion by May 31, 2025. The
increase reflects rising home-heating costs and greater summer air-conditioning use amid higher temperatures. About one in six US households is already behind on their utility bills before winter starts. Higher heating costs, particularly for households with electric heat, will make them fall further behind.”
NEADA represents the state directors of the Low-Income Home Energy Assistance Program (LIHEAP), which helps low-income households meet their home energy needs.
