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.
August 2024 Energy Hardship Report
It has been nearly 11 months since Congress cut $2 billion from the Low Income Home Energy Assistance Program (LIHEAP) budget, and 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.
The price of energy is volatile—and it hit record levels this summer driven by natural gas costs and periods of extreme heat—but energy affordability has proven to be a persistent problem that spans seasons. According to three years of data collected by NEADA, more than one in five households report being unable to pay their energy bill at least once during the year.
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.
August 2024 Report Highlights
- Utility debt has increased by 8.4% to almost $17.4 billion since December 2023.
- The $17.4 billion in debt is spread across 17.4 million electric and 11 million natural gas households.
- Due to budget cuts, the number of households served by LIHEAP has been reduced by close to one million households.
- 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.
- Utility shut offs are projected to increase by 300,000 households, to 3.5 Million, by the end of 2024:
- 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
April 2024
June 2023
November 2022
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