Energy price fluctuations can affect whether a low-income family can afford to pay their energy bills. Through the Energy Hardship Project, the National Energy Assistance Directors Association (NEADA) tracks energy prices, energy bill arrearages, and the toll unaffordable energy costs take on struggling families.
February 2026 Energy Hardship Report
Electricity costs have risen sharply for American households since 2021, far outpacing inflation and accelerating again this year. According to the U.S. Energy Information Administration, the average monthly residential electricity bill increased from about $121 in 2021 to roughly $156 in 2025, a rise of nearly 29 percent. This report outlines the urgent policy actions needed to protect vulnerable households from rising energy prices and ensure equitable access to essential utility services.
The price of energy is volatile, we estimate the cost of winter heating will be up 9.2 percent this winter driven by rising electricity and natural gas costs and periods of extreme heat—but energy affordability has proven to be a persistent problem that spans seasons.
The tables and charts in this report highlight the difficulties families are facing in paying their home energy bills, with many falling behind.
Data in this report come from various sources, including the US Bureau of Labor Statistics, Health and Human Services, Energy Information Administration, and Census Bureau, and utilities, state agencies and other data sources.
Download the report here.
February 2026 Report Highlights
- Electricity costs have risen sharply since 2021. The average monthly electricity bill increased from about $121 in 2021 to $156 in 2025, a rise of nearly 29 percent.
- The average energy burden for low income households is about 8.6 percent, almost three times the burden on other families (3.0 percent)
- Roughly 80% of LIHEAP funds are used for heating, leaving only 20% of funds to cover the growing and urgent need for home cooling assistance.
- About 21.5 million U.S. households—roughly 1 in 6—are behind on their energy bills. These numbers are expected to worsen as families face the double impact of costly winter heating and summer cooling. Household utility debt is reaching crisis levels.
- While families are protected from shut offs during cold months, 33 states do not have shut off protections for the summer months, leaving families vulnerable to extreme heat.
- Shutting off power is a ruthless and effective debt collection strategy, forcing roughly more than a third of families to prioritize utility payments over other basic necessities.
- “Low-income families feel the volatility of the global energy market most acutely, and it feels like living under the threat of getting your power turned off or living indebted to a faceless utility. It’s a real indignity that low- and middle-income families are dealt. It doesn’t have to be this way.” – Mark Wolfe, NEADA Executive Director
Past Energy Hardship Report Publications
August 2024
April 2024
June 2023
November 2022
Our Latest Posts From The Energy Hardship Project
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Winter Heating Costs Expected to Jump 9.2%
The National Energy Assistance Directors’ Association (NEADA) today released an updated winter outlook showing that U.S. home heating costs are projected to rise 9.2 percent this winter, about three times the overall rate of inflation, driven by surging electricity and natural gas prices and colder-than-average weather conditions.
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Energy Price Update – November 2025
Electric Prices Up by 10.5% Since January 2025 Average Electric Bills Continue to Rise Rising Winter Heating Prices: Electricity Costs Lead the Surge
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Summer Residential Cooling Outlook: Record High Home Cooling Prices
Today, the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate (CEPC) released their annual Summer Residential Cooling Outlook. We have found that consumers are going to be hit with record high prices for home cooling this summer, as the average cost of electricity is projected to reach $784, a…
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Press Release: Summer Residential Cooling Outlook Shows Record High Prices
Consumers are going to be hit with record high prices for home cooling this summer, as the average cost of electricity is projected to reach $784, a 6.2% increase from $737 last year and the highest cost of electricity on record. Prices are rising for two reasons: the cost of electricity is rising faster than…
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Press Release: Utility Bills This Winter Will Cost More Than Christmas
Home heating costs this winter will remain unaffordable for millions of lower income families. NEADA estimates an 8.7% increase from last year’s home heating costs for the full winter season. According to NEADA’s research, the cost of home heating is, on average, going to come to $941 for the whole winter. This cost is an…
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Press Release: As LIHEAP Funding Runs Dry, Utility Debt Increases by 8.4% to $17.4 Billion
The latest quarterly analysis by NEADA shows the extent to which the combination of high energy costs, high temperatures, and reduced federal support is setting millions of families back financially.