In a report recently submitted by the Energy Information Administration (EIA), it warns that by this summer electricity bills will increase by about 2%, even though energy costs have fallen.
Since last year, inflation has skyrocketed utility prices and more Americans are being penalized for debt piling up on household bills, according to EIA this year, average US households owe about $19.5 billion compared to with $15.7 billion in 2022.
Mark Wolfe, executive director of the National Association of Energy Assistance Directors noted that “many utilities buy natural gas in the fall and try to spread it out over time so that consumers are not hit with a big bill right away“, said.
Although wholesale energy prices have fallen this year, “those lower costs may not be apparent in retail prices until later this year or in 2024“, highlighted the EIA study.
About 40% of electricity in the United States is produced by burning natural gas, a resource that has skyrocketed in cost over the past 14 years, before returning to normal levels this year, so that price regulatory lag on consumer bills is often confusing.
“Consumers look at gas and say, well gas is down, why am I still paying more money for heat and power?” Wolfe said. Average costs vary across the country; however, it is estimated that invoices for electric service is at $529 dollars this year.
Source: La Opinion