Depending on where you live in the US, your electricity bill has likely risen at a rate higher than at the same time in 2021.
According to the US Bureau of Labor Statistics, electricity bills rise 15.8% in August, 2022 compared to August, 2021. Natural gas bills rose even higher in August, at a 33% clip compared to the same period in 2021.
Costlier household electric bills in the U.S. still compare favorably with most foreign countries — for now.
New data from insurance provider William Russell provides more clarity on the issue.
“The US has lower residential electricity costs than most prosperous countries, however, due to the increased use of solar and wind power and generations-long trend toward lower prices reversed around the turn of the century: the prices are only going to go up,” the William Russel report stated.
For example, the cost of running household appliances in the U.S. is still lower, on a monthly basis, than in countries with higher utility costs like Bermuda, Denmark, Germany, and the Netherlands.
In Bermuda, for instance, households pay $14.80 per month just to run a washing machine. In Germany, that price stands at $12.10. In the U.S., the cost of running a washing machine is only $5.80 per month.
The Russell report noted that a number of factors, most notably Russia cutting supplies of gas to Europe, have driven up costs.
“Other considerations include the rebound in worldwide demand for electricity following Covid, as well as the impact of the collapse of major energy suppliers,” the study stated.
What to Expect Going ForwardAs most of the cost issues cited by William Russell aren’t going away anytime soon, how much of a cost-hike can Americans expect this winter?
A big part of the answer lies in what’s happening in Europe right now.
“While energy prices are rising globally, Europe is in a particularly difficult situation,” said Scottish Heritage’s senior investment manager Jason Porter. “In addition to droughts and heat waves, its excessive reliance on Russian gas has increased electricity costs and contributed to the greatest inflation in decades.”
Due to the same issues, energy costs will continue to rise in the U.S., Porter noted.
“Our data indicate the typical American household might spend around $1,200 on heating their home this winter,” he said. “That’s $175 more than the previous winter,
which is significant given that almost 40% of families already experience financial hardship.”
Some U.S. states are feeling the pinch already.
“In Florida, where we’re located, we’ve seen a pretty noticeable increase of about 13% in our electricity bill without making any major changes to our usage,” said Wealthcare Financial managing partner Shaun Tarzy.
“That’s a lot considering the average electricity bill in 2021 was about $122 in the US, Tarzy added.
Use These Tips to Save on Energy Bills This Fall and WinterDon’t take rising energy prices lying down. Leverage these tips to tamp down electric and heating prices.
Install energy-efficient light bulbs. “LED bulbs use up to 75% less energy than traditional incandescent bulbs and can last up to 25 times longer,” Life Insurance Finder CEO Linda Chavez said.
Invest in energy-efficient appliances. Take a closer look at ENERGY STAR-certified appliances, which are designed to use less energy than standard models.
Weatherize your home. “Sealing air leaks and adding insulation can reduce your heating and cooling costs by up to 30%,” Chavez noted.
Switch to a programmable thermostat. Save about $180 per year on your energy bills by using a programmable thermostat to automatically lower the temperature in your home when you’re sleeping or away from home.