Energy Insecurity and the Impact on Families

If your electric bill seems higher than usual this summer, you’re not alone. The National Energy Assistance Directors Association projects that the average U.S electric bill for the 2024 summer months will be 8% higher than last year. 

Households in Kentucky along with other Southeastern states are facing some of the highest electric bills in the country with the average household expected to spend around $774 on electricity from June through September. 

As temperatures rise so does the cost of utilities for families. When utility costs exceed 6% of a household’s income, it can become a significant burden, making it harder for families to keep up with their bills and increasing the risk of disconnection. Energy insecurity, a term that describes the inability to meet basic household energy needs, is becoming an increasingly prevalent public health concern, affecting about 1 in 4 U.S households. 

For households struggling to pay their utility bills, the consequences can be severe. 

Once disconnected, utility services are not typically restored until the debt is retired or a substantial payment plan is established. Households can incur various penalties such as late fees, disconnection fees, and reconnection charges that make repayment difficult. Utility shut-offs and the financial strains of associated penalties, deposits, and fees can prompt recurring shut-offs and even eviction

Energy insecurity is especially common among low-income households, people of color, families with children under 5 years of age, individuals who rely on electronic medical devices, and those living in poor, inefficient housing conditions.

Energy insecure households are more likely to have to resort to risky coping strategies to meet their energy needs, such as: 

  • Seeking high-interest payday loans
  • Sacrificing basic needs such as food and medicine
  • Keeping their homes at uncomfortable and even unsafe temperatures
  • Relying on dangerous cooling or heating sources like space heaters or ovens

The impact of energy insecurity extends beyond the financial strain on a household. Energy insecurity is linked to:

Loss of utility service can be dangerous and even life threatening during extreme weather events, particularly for young children, the elderly, and those needing access to medical equipment. Residents of housing without proper heating and cooling are at a higher risk of heat-related illness and death, including hypothermia and heat stroke. 

Bill assistance can help protect households from the multitude of adverse effects that come from overdue utility bills, but these programs are often difficult for individuals and families to access. The federal Low-Income Home Energy Assistance Program (LIHEAP), which helps low-income households with their energy costs, has historically reached only 10-20% of eligible households due to funding limitations and recent federal funding cuts and programs ending could mean, even fewer households will receive help this year.

In response to these challenges, states have implemented temperature-related disconnection standards to protect households from losing access to utility service during extreme heat and cold due to non-payment. Several states including Georgia, Arkansas, and Texas have recently established summer protections. Kentucky is one of only 7 states without winter protection standards. 

There have been recent efforts in Kentucky to address these issues with previous bills receiving bipartisan support. We hope that Kentucky will follow the lead of other states enacting legislation to establish temperature-related disconnections standards, protect those with medical needs, and ease the financial burden of reconnections. 

As the temperature – and your electric bill – continues to rise, it’s crucial to stay informed about your rights and the available resources. Together, we can advocate for policies that ensure every Kentuckian has access to the essential energy services they need.

Shared from https://kyyouth.org/energy-insecurity-and-the-impact-on-families/?sourceid=&emci=a37cdd5a-225b-ef11-991a-6045bddbfc4b&emdi=d8045a81-ba5b-ef11-991a-6045bddbfc4b&ceid=2279829