Many Americans find it difficult to keep the lights on as energy costs and consumption rise

With the Cost of things Just as food and housing continue to strain people’s budgets, many U.S. households have had to cut spending on basic necessities over the past year just to keep the lights on at home.

That’s according to a recent Lending Tree study that analyzed data from the U.S. Census Bureau’s Household Pulse Survey from August 20, 2024 to September 16, 2024 to determine the percentage of Americans ages 18 and older who have the necessary expenses to pay their energy bill, the temperature in their home was unsafe or unhealthy, or they were unable to pay the full amount of their energy bill at least once in the last 12 months.

The study found that more than 34% of respondents said they had to cut back or skip spending on certain necessary expenses at least once in the past year in order to pay their energy bill.

“Even though inflation has moderated in recent months, life is still incredibly expensive, and that can make it difficult to pay your bills,” Matt Schulz, chief credit analyst at LendingTree, said in the report. “Many people have had to make difficult decisions to keep the lights on. For some, that might mean cutting back on some expenses. For others, it might mean getting a part-time job or a second job.”

Not surprisingly, households in poorer states have a harder time keeping up with their electricity bills. According to LendingTree, in Alabama and Mississippi, more than 44% of residents reported having to make sacrifices to pay their electric bill. According to the report, eight of the 11 states with the highest percentage of people struggling to pay their energy bills are in the South.

“Southern states tend to be low-income states, which means every month can be a struggle,” Schulz said. “If you then add that these are also countries with low credit ratings, the situation becomes even more difficult.”

Adding to people’s difficulties are the rising costs of utilities. Americans spent an average of $185.59 on utility bills in August, up 2.6% from $180.82 in the same month last year, according to LendingTree. However, residents in states with the highest energy rates do not necessarily pay the highest average monthly bills, said the report, which found significant differences in energy use.

For example, according to the report, Arizona still has the second-highest average monthly bill at $254.47, with an average electricity price of 42.10 cents per kilowatt hour, which is 14.7% lower than the national average of 16.63 cents. Connecticut, which has only the third-highest electric rate at 29.93 cents, or 109.7% above the national average, has the highest average monthly bill in the country at $254.47.

Schulz assumes that both electricity costs and electricity consumption will continue to rise.

“For one thing, climate change and that extreme weather “That can lead to higher usage, both in the heat of the summer and the cold of the winter,” he said. “In addition, many utilities are attempting to increase their rates in response to growing demand and other issues, and in many cases they are prevailing. All of this poses some challenges for people on tight budgets.”