An exclusive survey conducted by CNET Money has revealed that 78% of Americans are increasingly worried about their escalating energy bills.
The survey, which covered all regions of the U.S. including the Northwest, Midwest, South, and West, found that approximately 80% of U.S. adults feel their finances are strained by higher home energy costs. In response, 32% of Americans are resorting to borrowing, using payment plans, or seeking assistance programs to manage their energy expenses. Meanwhile, 39% are reducing non-essential purchases, and 24% are cutting back on essential items to cope with the increase. Additionally, 15% are tapping into their savings to pay their energy bills.
The survey also highlighted that groceries, gas, dining out, and utilities are the top four areas where Americans are experiencing financial strain. More than 90% of respondents are also concerned about inflation.
Looking ahead, the Energy Information Administration (EIA) has projected a slight increase in residential electricity bills this summer. According to the EIA, the average monthly electricity bill is expected to rise to $173, up from $168 last summer. This increase is partly due to higher energy consumption from expected hotter temperatures, though lower electricity prices in many areas may provide some relief.
Despite declining costs for generating electricity, transmission and distribution expenses continue to rise. The National Energy Assistance Directors Association (NEADA) anticipates that residential electric utility costs will reach their highest level in a decade this summer. The cost of cooling homes is projected to increase by 7.9%, averaging $719 from June through September, compared to $661 during the same period last year.
NEADA noted that the cost of summer cooling has surged from $476 in 2014 to an estimated $719 in 2024, driven by unprecedented summer temperatures and increased rates of extreme heat events over the past decade.