Families across the United States are dreading the next winter due to rising energy expenses and limited fuel sources.
The Department of Energy predicts steep price hikes for home heating compared to last winter, and some are concerned about the ability of heating assistance programs to make up the difference for low-income families. The situation is much more dire in Europe, where Russia’s continuing natural gas restrictions are driving up prices and producing severe shortages.
Aaron Raymo in Maine noticed the writing on the wall and began stockpiling heating oil in 5-gallon increments during the summer as prices increased. He used a heating aid program to top off his 275-gallon oil tank as winter approached.
His family is attempting to avoid being forced to make a difficult choice between food and house heating.
“It’s challenging,” he remarked. “What are you going to choose for meals, and how much fuel oil would you choose to keep warm?”
What is causing rising heating costs?
Several forces are converging to create an unfavorable situation: Global energy consumption has increased since the beginning of the pandemic, and the supply was barely keeping pace with demand before the Ukraine conflict further curtailed supplies.
This winter, according to the National Energy Assistance Directors Association, energy expenses will be the highest in more than a decade.
Natural gas is utilized by over half of U.S. households for heating, and the Energy Department predicts that their heating expenditures would increase by 28% this winter. The agency projects that heating oil will be 27% more expensive and electricity will be 10% more expensive.
This is despite the fact that inflation rates surged last month, with consumer prices increasing by 6.6%, the strongest rate in four decades.
In addition, the OPEC+ alliance of oil-exporting nations decided earlier this month to drastically curtail output in an effort to prop up declining oil prices, a move that might increase both home heating expenses and gas prices.
In New England, which relies heavily on heating oil to keep houses warm, the impact will be particularly severe. The energy agency estimates that it will cost more over $2,300 to heat a typical home with heating oil this winter.
Across the nation, some are pressing utilities to institute a moratorium on winter shut-offs, and Congress has already allocated $1 billion for heating assistance. However, there will be fewer federal dollars available than during the previous pandemic year.
That appears that it is insufficient.
In Jay, Maine, where Raymo lives with his partner, Lucinda Tyler, and their 8-year-old son, neighbors were already bracing for the worst before the announcement that the local paper mill would close, putting more than 200 people out of work. This has the potential to wreak havoc on the town’s budget and lead to higher property taxes, further straining the budgets of citizens.
Raymo and Tyler both hold full-time employment. He works 70 to 80 hours a week in an orthopedist’s clinic, while she performs shareholder services from home for a financial services company. They do not qualify for much assistance despite the fact that they are barely able to afford maintenance, gas, food, and to heat their 100-year-old home in a state noted for its brutal winter.
“We work long hours, but it doesn’t seem to be enough,” Tyler sobbed with relief when she realized they were eligible for even a small amount of heating help.
Congress increased funding for the Low Income Home Energy Assistance Program by $1 billion last month, bringing the total to at least $4.8 billion and making greater heating assistance available for the start of the winter season.
The third warmest summer on record has already put a strain on LIHEAP financing, “so I am delighted that we were able to obtain these fresh resources before winter sets in,” said Vermont Democrat Patrick Leahy, chairman of the Senate Appropriations Committee.
In comparison to previous year, when government pandemic aid drove the total energy assistance package past $8 billion, this figure marks a drop.
Some are seeking assistance for the first time. Mario Zullo, 72, of Auburn, Maine, stated that he worked his entire life and never requested for assistance until he received heating assistance last year. The program aided with his heating system upgrading.
Zullo stated, “It came to us at a moment when we needed it the most.”
Mark Wolfe, the executive director of NEADA, expressed concern that the federally financed program will not be sufficient due to the high cost of electricity and the continuous volatility of energy markets. He stated that it could be even worse if the winter is exceptionally cold.
He stated, “The crisis is coming.” There is a great deal of uncertainty and variables in play that could cause these prices to rise.
The state of Maine has the oldest population and is the most dependent on heating oil, presenting a double disadvantage.
“People are frightened. They are anxious. They’re dissatisfied, “Lisa McGee, who coordinates the heating assistance program in Lewiston, Maine for Community Concepts Inc., stated as much. This year, anxiety has increased.