NEADA Report: Assistance applications up as home energy prices coming down – Daily Energy Insider

Published on February 01, 2023 by Liz Carey

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In its midwinter energy update released Monday, the National Energy Assistance Directors’ Association (NEADA) said the increase in energy assistance applications was the highest since 2009.

The report said that the number of households receiving energy assistance is approximately 6.2 million, up 1.3 million from last year’s 4.9 million. NEADA officials said it was the largest one-year increase since 2009. The numbers don’t take into account applications from this summer, the report said, when families applied for assistance to deal with rising temperatures due to climate change.

The report said that states have sufficient funds to provide that assistance, but they could run out of funding if the rate of new applications continues to increase. States are also concerned, the report said, that they will run out of funding to assist families in the coming summer months when temperatures rise again. The report noted that the increase in assistance applications coincides with increased prices for other goods and services, making it harder for residents to pay for higher energy bills.

The report found that the national rate of utility arrearages was consistent at about $16.6 billion. An estimated 20.8 million households (about 16.5 percent) owe an average of $791. That number is up slightly from June 2022, when total arrearage was $16.3 billion, or about $783 per household.

NEADA said its analysis found that households will face significant increases in their home heating bills this winter when compared to last winter. Households will pay an estimated 12.7 percent more for home heating this winter, as heating oil sees a nearly 26 percent increase over last year, and natural gas sees a 14.5 percent increase.

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