Soaring Electricity Prices Lead 20 Million US Households To Fall Behind On Utility Bills

The United States is facing a “tsunami of shutoffs” as 20 million households, or about 1 in 6 American homes, can’t afford to pay for their power bill, according to Bloomberg. The soaring price of electricity, amid a global energy crunch, has led to what the National Energy Assistance Directors Association (Neada) is said to be the worst-ever crisis in late utility payments.

The average price of household electricity surged 15% in July from a year earlier, marking the biggest 12-month hike since 2006.

Via Bloomberg

The rising power costs, coupled with shrinking purchasing power from inflation, have pushed the collective utility bill balance to $16 billion in June, compared to $8 billion in December 2019, and $11.7 billion in December 2020.

Via Bloomberg

According to Bloomberg, California’s PG&E Corp. (NYSE: PCG) reported a 40% jump from February 2020 in the number of households behind on their payments. New Jersey’s Public Service Enterprise Group (NYSE: PEG) meanwhile reports a spike of 30% for households that are at least 90 days late.

“I expect a tsunami of shutoffs,” Jean Su, a senior attorney at the Center for Biological Diversity, told Bloomberg. The center tracks utility disconnections across the US. These shutoffs can have dangerous, sometimes deadly, consequences, especially as summer heat continues to shatter records.

Via Bloomberg

The urgency of the situation has caused an uptick in calls for states and the federal government to offer assistance. In early August, about 60 US representatives and senators asked for additional emergency funding on top of the $4 billion allocated for Liheap for the fiscal year 2023. California, meanwhile, has just passed a budget that allocates $1.4 billion to assist residents with past-due utility bills.

But temporary government assistance won’t end the pain of rising electricity costs. With rising prices, and heat waves pushing the need for more energy, the crisis in late utility payments may just be getting started.


Information for this briefing was found via the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Did Germany’s Economy Minister Just Accuse The US Of Profiteering Gas Revenues From The War?

Germany’s Economy Minister Robert Habeck has come close to accusing the United States and other...

Wednesday, October 5, 2022, 01:32:00 PM

China Faces Widespread Electricity Blackouts as Surging Coal Costs Create Supply Shortages

Just as we thought things couldn’t get worse for the world’s second largest economy— along...

Tuesday, September 28, 2021, 02:37:00 PM

Germany Sees Gas Reserves Reaching 85% A Month Ahead Of Schedule, But Is It Enough?

Germany seems to be shoring up its energy reserves faster than its emergency plan as...

Tuesday, August 30, 2022, 03:44:00 PM

Germany to Impose 33% Windfall Tax on Oil, Coal, and Gas Companies

The German government unveiled yet another windfall tax this week, this time targeting profits generated...

Wednesday, November 23, 2022, 12:56:09 PM

Olaf Scholz Mulls Nationalizing Germany’s Gas Importer to Avert Full Energy Catastrophe

You know Europe’s energy crisis is rapidly worsening when Germany’s government prepares to nationalize the...

Wednesday, September 14, 2022, 09:24:47 AM