Report: Over 20 million U.S. households are behind on utility payments

The National Energy Assistance Directors Association (NEADA) have predicted that over 20 million U.S. families are currently behind on paying their utility bills.

NEADA executive director Mark Wolfe said he believes these statistics are “historic,” adding that, “looking ahead – all signs point to continued growth in arrearages.” 

NEADA’s chief told Fox News that the debt currently owed to energy companies is sitting at $16 billion. This is nearly double the figure at the end of 2019, which was $8.1 billion. The average outstanding bill increased from $403 to $792.

NEADA’s summer electricity report also suggested that things are likely to get worse before they get better. “Electricity prices are expected to increase significantly this summer as result of rapidly rising natural gas prices, a primary feeder fuel for electricity and a warmer summer creating additional demand for electricity,” they wrote.

The data provided by NEADA suggests that the arrears are caused by the increasing energy prices and that many households are on the brink of losing power.

The Associated Press reported that low-income homes have been hit the hardest by increasing electricity costs with 40% of them reporting that they have fallen into arrears with their utility bills. One in three households have also reported that they have sacrificed either food, medicine or other household products to pay their bills.

Jean Su, who is a senior attorney at the Center for Biological Diversity, informed Bloomberg News that the increasing energy costs are likely to trigger a “tsunami of shutoffs.”

Andrew Lipow, who is President of Lipow Oil Associates said this week that “the consumer is going to pay more for their heating bills this winter,” adding that “whether they use natural gas or home heating oil, most will have sticker shock.” Lipow went on to say that “natural gas futures prices are now more than double what they were a year ago.”