Energy costs expected to rise 17% this winter, low-income households will be hit hardest, report finds

SAN ANTONIO – A new report from the National Energy Assistance Directors Association (NEADA) says home heating costs for the upcoming winter season are expected to be 17% higher than last year.

The report states that lower-income households will be hit hardest by the additional costs.

According to Mark Wolfe, Executive Director of NEADA, the rise in home energy costs this winter will put millions of lower-income families at risk of falling behind on their energy bills — leaving them no choice but to make difficult decisions between paying for food, medicine and rent.

In response to this, NEADA officials sent a letter to congress last week asking for a supplemental increase for the Low Income Home Energy Assistance Program.

NEADA requested that congressional leadership supplement the program with $5 billion to help cover the cost of heating, in addition to higher cooling costs as a result of record heat over the summer.

Heating bills this winter are expected to reach a 10-year-high of about $1,200 per home.

Estimated winter heating costs in the table below were provided in the report. The numbers assume the same consumption in 2022-2023 as 2021-2022.

Winter Heating Season Natural Gas Electricity Heating Oil Propane All Fuels
2020-2021 $573 $1,191 $1,212 $1,158 $888
2021-2022 $709 $1,242 $1,876 $1,587 $1,025
2022-2023 $952 $1,328 $2,115 $1,828 $1,202
% Difference, 22-23 vs. 21-22 34.3% 6.9% 12.8% 15.2% 17.2%
% Difference, 22-23 vs. 20-21 66.1% 11.5% 74.5% 57.8% 35.3%

NEADA’s report states that estimated costs for heating will increase from $127.9 billion last winter to an estimated $149.9 billion this winter.

This is the second year in a row that homeowners have seen major price increases. Between 2020-2021 and 2021-2022, the cost of home energy increased by more than 35%.

Estimated Winter Heating Costs by Year (National Energy Assistance Directors Association)

KSAT has reached out to CPS Energy for comment about estimated cost increases this winter and will update this article when we receive a response.

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