- Americans should expect higher energy bills for heating this winter.
- Consumers can reduce energy bills by integrating energy efficiency in heating and lighting.
According to the U.S. Energy Information Agency(EIA) released this week, Americans should expect higher energy bills for heating this winter. However, the increment will vary with the energy source used for heating. For example, homes using natural gas for heating will have a 28% increase, propane heat will have a 5% increase and homes heated with electricity will have a 10% increase in price compared to the last winter. Also, an EIA survey showed that about 27% of households in the country keep their homes at unsafe temperatures to avoid higher energy bills or difficulty paying their energy bills.
The Biden administration launched programs worth over $3 billion to help low-income households energy-efficiently retrofit their homes, particularly in preparation for the winter. The Department of Energy encouraged consumers to reduce their energy bills by adopting energy efficiency for heating and lighting. According to the EIA, the fuel supplies are low compared to demand justifying the price increase, especially with the challenges that winter could pose in delivering fuels where needed.
The CEO and Principal Energy Markets Consultant for RBN Energy, Rusty Braziel, said that several factors affect energy prices, creating a different kind of turmoil with energy prices in the market. He added, “We’ve got a hot war in Europe, we’ve got sky-high prices, and Russia’s use of energy as a weapon. We’re still recovering from a global pandemic. Our markets are absorbing a massive new energy transition, and this economy is shaky; the Recession could be just around the corner. National politics are wacky, and producer discipline has reset the shale supply curve. So if that ain’t wild, I don’t know what is.” Finally, given the National Oceanic and Atmospheric Administration’s forecast for a colder-than-average winter in some parts of the country, energy demand could change if the temperature decreases.