Heating Bills Are Set to Rise Nearly 10% This Winter

Americans should expect higher heating bills this winter, as colder weather and rising energy prices drive up costs across the country.

The average household is expected to spend close to $1,000 to heat their home, about 9.2% more than last winter, according to a group that represents state energy assistance officials.

The main reasons are higher electricity and natural gas prices and forecasts calling for colder-than-usual temperatures in many regions.

For families already struggling to pay bills, the increase could be serious. Energy assistance officials warn that more people may fall behind on utility payments or face shutoffs simply because they cannot afford to keep their homes warm.

At the same time, the Trump administration has reduced federal support for low-income households struggling to pay heating bills. Funding for the Low-Income Home Energy Assistance Program has been cut by about one-third this year, compared with two years ago. As a result, only about 17% of eligible households are receiving help, leaving millions with fewer options as heating costs rise.

Energy costs have been rising for years. Utility companies say prices are going up because they are spending more to repair aging power systems, protect grids from extreme weather, and expand capacity as electricity demand grows — including demand from data centers that power artificial intelligence services.

Electricity prices have climbed much faster than inflation. Since 2021, the average price per unit of electricity has risen nearly 30%. A typical household now pays about $181 per month, up 7% from a year ago.

This winter:

• Households using electric heat are expected to see costs rise about 12%

• Households using natural gas are expected to see increases of about 8%

As bills rise, more households are being disconnected for missed payments. Utilities shut off service to 3.5 million customers in 2024, and experts expect that number to reach 4 million this year.