And now climate change America’s PantryIn fact, one-third of American households are cutting back on grocery shopping to make up for energy bills, and 75% of households expect increased expenses over the summer to be a “financial burden,” according to a survey of 2,000 U.S. adults. Power Setteris an energy comparison platform that provides consumers with information about different energy plans and options. Incidentally, July 22 was the hottest day ever recorded on Earth. Satellite data.
“Extremely hot weather is causing increased energy consumption. During extreme heat, homes tend to turn on their air conditioners more often, increasing energy consumption and associated costs,” said Mark Feigin, founder and CEO of Powersetter. luck. “But that’s not the only problem. Power companies are being forced to raise rates to keep up with inflation. Many consumers are using less electricity because they can’t afford the rising bills, but they may still end up paying higher bills than last year.”
In the hottest states in the U.S., including Texas, Oklahoma, Arkansas and Louisiana, consumers can expect to pay an average of $858 on their bills from June through September, according to the National Association of Energy Assistance Administrators (NEADA). predictionIn West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida, Delaware, Maryland and Washington, D.C., people can expect to pay $723, which represents 16% to 23% of the average salary in those states.
According to the survey, not only are Americans cutting back on their grocery budgets to pay for rising utility bills, but one in three households are also cutting back on spending on outdoor dining, entertainment like concerts and events, and streaming services to save on air conditioning. Additionally, about 20% have canceled summer vacations, and about 50% are cutting back on other budgets to make ends meet.
Why have air conditioner electricity bills become so high?
Consumers’ energy bills have risen nearly 30% year-to-date over the past decade alone, with 2022 seeing the largest annual increase in average residential electricity bills since the early 1980s. U.S. Energy Information AdministrationBased on a typical monthly energy usage in the United States, Americans spend over $151 on their electricity bill alone.
Several factors are contributing to rising energy bills. Experts say that global warming and climate change are definitely contributing to rising energy bills, as rising temperatures outside mean more energy is needed to cool your home.
“Weather is becoming more volatile and extreme,” says Andrew Meyer, CEO of Home Energy Advisory. Arbor Helping consumers find cheaper energy prices, luck“When it’s hot, we use a lot of electricity to cool our house. When it’s cold, we use a lot of gas to heat our house.”
But global warming and climate change “are certainly contributing to higher energy bills, but not necessarily in the way that you might think,” Meyer said. But the big problem for utilities is that increased demand is also causing higher energy prices.
“Consumers are using and paying more per unit of energy,” Meyer explains. Energy units are measured in kilowatt-hours (kWh), which “can have a big impact on the total amount of your bill at the end of the month,” he adds.
Indeed, electricity demand from both the consumer and industrial sectors has more than doubled from last year, “putting pressure on energy prices as utilities race to put in place the appropriate infrastructure to support it,” said Robert Brook, the company’s senior vice president. NyalaA company that uses machine learning to help improve public infrastructure luckExtreme weather events also impact monthly energy bills, something Brook calls one of the “downstream effects of global warming” that drive up energy costs.
“Our already aging infrastructure is increasingly crumbling under sustained environmental pressures,” Brook says. “Preventing blackouts requires greater vigilance than ever before,” but that comes at a cost that will be reflected in consumers’ electricity bills.
How to save money on your energy bills
Experts say there’s no surefire way to lower your energy bills, especially where you live. Regulated Energy MarketsIt’s a system in which utilities own all the associated infrastructure, including the power lines, poles, wires, transformers, etc. These companies generate electricity and sell it directly to customers, meaning consumers can’t shop around for a better tariff. Only 13 states in the US have deregulatedIt allows customers to choose where they buy their electricity.
“It’s essential to closely monitor how much you’re being charged per kilowatt-hour,” Meyer says. “In deregulated states (13 in total), all customers have the option to shop around for rates, which can be a great way to lower your overall energy bill.”
But consumers who live in regulated energy markets have options to reduce their energy costs.”
“If you live in an area served by a monopoly utility, you have a lot of other options,” Feigin says. Some utilities charge higher rates during peak hours, so Feigin suggests adjusting your consumption based on those times.
“Using less energy during peak times, usually early evening, could save hundreds of dollars a year,” Meyer says. “Households with smart thermostats or electric vehicles can program those devices to avoid peak usage times, making savings even more likely.”
Meyer also suggests considering community solar programs, where consumers can sign up for solar farms in remote areas and receive credits that can save them 5 to 10 percent on their monthly bills.
Besides buying less food at the grocery store each week, there are other “easy tricks” to make up for rising energy costs: Switching to energy-efficient lightbulbs and appliances “can make a big difference,” Feigin said, as can running a full load of your washing machine and letting your clothes and dishes air dry.
“Save a little here and there and it adds up to a lot of money and doesn’t take a lot of effort,” Feigin says.
