A new report warns that heating costs will jump 9.2 percent compared to last year.
The National Energy Assistance Directors’ Association (NEADA) released an updated winter outlook on Monday showing that surging electricity and natural gas prices, combined with colder-than-average weather conditions, will push the average household heating cost to $995 this winter, an increase of $84 from the previous year.
Families relying on electricity for heating will experience the most dramatic impact, with costs climbing 12.2 percent to $1,233 this winter. Natural gas users will also see substantial increases, with heating bills rising 8.4 percent from $650 to $704. However, households using heating oil and propane are expected to see prices remain relatively stable compared to last year.
Residential electricity prices have climbed to their highest level in a decade when adjusted for inflation. Since January 2025, the average monthly electric bill has increased by nearly 10 percent, far outpacing wage growth and overall inflation. Over a longer period, the average cost per kilowatt-hour has risen 27.9 percent since 2021, while monthly electric bills have climbed 29.2 percent.
Several factors are driving the surge in electricity costs, including high interest rates that increase grid financing expenses, greater reliance on natural gas for power generation, surging demand from data centers, aging infrastructure, and regional capacity shortfalls.
Natural gas prices have risen nearly 50 percent over the past year, driven partly by rapidly expanding liquefied natural gas (LNG) exports that are increasingly tying U.S. prices to volatile global markets. The Energy Information Administration projects LNG exports will increase 37 percent next year, further tightening domestic supply.
The impact of rising natural gas prices extends beyond direct heating costs. Natural gas provides approximately 40 percent of the fuel used to generate electricity and heats about 46 percent of households, meaning price increases affect consumers through both higher heating and electric bills.
NEADA estimates that one in six U.S. households is already behind on energy bills, owing utilities a combined $23 billion. As many as four million households could face power shutoffs in 2025, nearly 500,000 more than last year.
Low- and moderate-income families now spend 6 to 10 percent of their income on energy—three to five times the share paid by higher-income households. Even small rate increases can force families to choose between heat, food, rent, and medicine.
Although $3.7 billion in Low Income Home Energy Assistance Program (LIHEAP) funding was released in late November, rising prices and colder weather have sharply reduced its effectiveness. Currently, only 17 percent of eligible households receive assistance, and overall LIHEAP funding has declined from $6.1 billion in 2023 to about $4 billion in 2025.
NEADA is urging Congress to increase LIHEAP funding to $6.1 billion and expand investments in weatherization, grid modernization, and clean energy while ensuring affordability protections are built into utility rate structures.
