Winter Energy Costs Surge: Millions Struggle as Utility Debt Tops $23 Billion
By Stacey Bailey, Vice President
Home energy costs continue to rise, according to the National Energy Assistance Directors Association (NEADA), which released its 2025/2026 Winter Outlook recently. The most significant increase is hitting those who rely on electricity for home heating, with prices expected to jump by 10.2%, from $1,093 to $1,205 this winter. Natural gas isn’t far behind, as NEADA predicts the average cost will climb from $639 to $693. Since the 2021/2022 winter season, electricity and natural gas costs have risen 31% and 26.5% respectively.
According to the August 2025 Consumer Price Index, electricity and natural gas prices have been rising at more than twice the rate of inflation over the past year.
The consequences for both consumers and utilities are staggering. Household utility debt has surged, with NEADA reporting that energy arrearages have risen by about 31% since December 2023—from $17.5 billion to $23.0 billion as of June 2025.
According to NEADA data, 21 million households—one in six—are behind on their energy bills.
In 2025, 17.4% of Canadian respondents to Chartwell’s annual Residential Consumer Survey, and 19.3% of US respondents, stated that they had paid utility bills late in order to prioritize other important bills.
A recent US Census Bureau Pulse Survey found that 23% of US households couldn’t pay an energy bill during at least one month in the past year; for those earning less than $50,000, that number jumped to 37%.
The map below, using data from a recent US Census Pulse Survey, shows the percentage of households by state in the US that were unable to pay an energy bill or the full bill amount for at least one month in the past year.
Chartwell’s consumer survey shows a 75% increase since 2022 in households relying on financial assistance or payment extensions to manage their energy bills.
👉 On the blog: Executive Issue Paper No. 09 – Energy Affordability in a Changing Policy Landscape
As energy costs continue to rise, energy affordability is front and center for utilities as they seek to help customers keep the lights and heat on, while at the same time trying to manage increasing arrearage levels as they soar past $23 billion in the US. Chartwell continues to see billing options, payment programs, and credit and collections strategies, coupled with customer-focused communications, continue at the top of utilities’ priority lists as we enter the winter season.
➡️ Learn more about the Vulnerable Customer Council by contacting Tim Herrick.
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