As the cost-of-living crisis continues to bite, millions of American households are falling behind on their energy bills, with some facing devastating consequences. Kristy Hallowell, a 44-year-old from Greenwood Lake, New York, is one such example – she lost her job last year and saw her monthly electricity bill triple to $1,800, leading to her gas and electricity being cut off for six months.
Hallowell is far from alone. According to a recent report, nearly one in 20 US households are at risk of having their utility debts sent to collections heading into the winter months. The analysis, compiled by the Century Foundation and Protect Borrowers, found that the number of households with severely overdue utility debt rose by 3.8% in the first six months of former President Donald Trump’s second term.
Residential energy bills have emerged as a key cost-of-living concern, as many Americans buckle under the weight of rising prices. Official data from November shows electricity prices rose 6.9% from the year before – much faster than overall inflation. While Trump claimed during his campaign that he would cut energy bills in half, he has since blamed former President Joe Biden and interest rate hikes for the lingering economic pain.
Experts warn that the Trump administration’s rollback of clean energy projects, including a pause on offshore wind leases, could drive electric bills even higher. Additionally, the boom in energy-hungry data centres is straining the power grid, pushing up prices for everyone.
Some state-level initiatives, such as Virginia’s plan to ensure tech companies “pay their fair share”, offer hope. But any relief for consumers is likely to take time, with residential energy prices expected to remain elevated in the coming months.
Ibrahim Awadallah, a 30-year-old in Charlotte, North Carolina, is one such concerned resident. Despite installing solar panels to reduce his energy costs, he has seen his bills rise by around 10% recently, a trend he fears will only worsen if a proposed data centre project in his area is approved.
As the winter months approach, the struggle for many American families to keep the lights and heat on shows no signs of abating. Policymakers at all levels will need to grapple with this pressing issue to provide much-needed relief.