What?s Behind the Nationwide Increase in Utility Bills?

This winter might prove particularly cold and expensive, with utility hikes rising. Many U.S. consumers, hit with higher heating bills this winter, wonder what is behind the nationwide surge in energy costs. 

A combination of inflation taxes, pandemic crises, and energy legislation is likely to make your heating bill jump this winter. 

What’s Behind Nationwide Utility Hikes?

Inflation, rising energy commodity prices, and current “green energy” government policies have caused utility bills to increase for a lot of people in the United States.

1.    Inflation

Inflation plays a critical role in how much you will pay to heat your home this winter. In December 2021, the U. S. economy’s inflation hit a 40-year high. The last time inflation surged this high was during President Jimmy Carter’s administration.

All energy numbers tell a grim story.

Almost half of U. S. households that rely on natural gas can expect to spend 30% more on average than they did last winter. 

According to the Winter Fuels Outlook 2021 report from the U. S. Energy Information Administration, 41% of households who use electrical heating are projected to spend 6% more this year.

Oil is 60% more expensive than in 2020. Natural gas went up over 25%, while electricity increased 6.5%. Additionally, crude oil prices also doubled.

If you’re one of the 10% of Americans who heat their homes with oil or propane, you’re likely to face even bigger bills (43% to 54%) unless you take steps to protect yourself this winter.

Inflation cuts deep since many families experience reduced work due to the global pandemic. Some are forced to choose between food or medicine and keeping the heat on.

2.    Energy Commodity Prices Have Escalated

According to the Bureau of Labor Statistics, due to high inflation and crippling energy policies, overall energy source prices increased by 50% this past year. Natural gas, according to CNCBC, has been at an all-time high since 2014. That’s a 90% increase in just one year.

Pandemic shortages, transportation penalties, high global demand, and federal regulations impeding American fuel exports have caused skyrocketing energy commodity costs.

3.    Government Policies

Currently, there are government administration policies that are driving surging energy costs.

These include adopting new EPA oil and gas rules that control methane emissions during gas and oil production, storage, transportation, and distribution.

The administration also stopped new gas and oil leases in federal lands and waters, such as the Keystone XL pipeline and the Arctic National Wildlife Refuge.

Meanwhile, red tape, onerous energy agreements, energy cost impositions, raised taxes, and anti-energy funding continue to raise prices on transportation cars and trucks. Furthermore, they tie up energy production and distribution for American consumers.

Overturning previous regulations exacerbates energy poverty and increases consumer cost burdens.

5 Ways to Lower Energy Costs This Winter

Despite the grim weather and price forecast, there are several things that you can do to keep your family warm while keeping your wallet full in the coming months.

1.    Check Your Windows for Leaks

Locating and sealing any cracks in your windows is critical if you’re serious about cutting down on your heating bill.

According to energy and window experts, 15-20% of your heat is lost through your windows.

If you find wind whistling around your doors and windows, that means that your heating system is working harder to keep your house warm.

You can fight heat loss and help heat your home more efficiently by sealing these areas with various removable caulks, sprays, or films.

When you’re looking for a long-term energy solution, look into investing in energy-efficient windows that can save you hundreds of dollars in utility bills each year.

2.    Turn Down Your Thermostats

We get it. It’s hard to sleep if you’re cold. If you’re unable to afford rising heating costs this winter, try turning down your house thermostat a couple of degrees at night.

You can compensate by going to bed with extra clothes, blankets, or a hot water bottle.

Another less painful way to save on energy costs is to turn down your water heater temperature at night. If you turn it back on in time to heat up in the morning, you can cut costs and still get a hot shower.

3.    Move Furniture Away from Heat Vents

One fast and free way to help heat your house for less is to ensure that furniture, drapes, or other items aren’t blocking your floor registers or return vents.

4.    Remove Air Conditioner Units

It’s easy to forget about air conditioner units left in windows over the winter. This is especially true if you live in a climate such as the upper southern United States that can fluctuate between warm and cold temperatures during early winter.

Remove air conditioner units to keep heat from escaping from your home and save money on your utility bills.

5.    Get a Free Energy Audit

If you’ve done everything you can and still can’t get ahead on your energy bill, you can get an energy audit.

Some gas and electricity companies in certain states may offer a free review that compares your energy usage to your neighbors in the same area.

If you consistently use more energy than others in the same zip code, it might be a good idea to pay for or score a free home energy audit.

Securing your home, cutting back on costs, and getting a furnace tune-up after an energy audit can help you survive the winter while saving money and keeping your family warm.