So what’s behind the rise in energy bills?
What’s happening with energy prices?
The amount you pay for gas and electricity services at home have been on a rapid rise since 2020.
This is in contrast to a decade of relatively slow growth preceding it.
Lafakis said that the same measure rose only 8% from 2010 to 2020.
“That’s translating to very high bill amounts,” Spalinger said.
This has in turn left consumers feeling more unsatisfied with the value they get from utility services.
“This is just another thorn in the side of the consumer,” Spalinger said.
Why are energy prices going up so much?
This rise in energy prices has far exceeded the inflation rate the country has seen in the post-pandemic years.
Well, there are a few reasons.
All of that contributes to higher rates.
“It’s a service, it’s not an energy good,” Lafakis said.
“That’s a commodity.
If it’s a service, service prices are stickier,” Lafakis said.
Plus, consumer energy rates are highly regulated by state governments, Lafakis notes.
“This is almost like catch-up,” Lafakis said.
Will energy prices drop when inflation comes down?
Probably not by much.
But there are still things you’re free to do to deal with high bills.
you’ve got the option to also upgrade your old appliances for models that are more energy efficient.
Ironically, you might also turn to your utility company for help.
Most energy companies have programs for low-income residents, especially.
That might look like budget billing, or even payment assistance.
“There is help out there,” Spalinger said.
Reach out to your utility and ask what pop in of assistance might be available.
