Five Reasons Why Electricity Bills Are So High Right Now
If you’ve found yourself drained by your electricity bill this winter, you’re not outpacing inflation. The average monthly residential electricity bill increased from about $121 in 2021 to $156 in 2025, a nearly 30 percent rise. And from last January to October alone, electricity bills rose 12.7 percent.
Brace yourself: Things are likely only going to get more expensive.
The average U.S. household is projected to spend nearly $1,000 this winter to heat its home, according to data from the National Energy Assistance Directors Association (NEADA). The rising costs come as more Americans are finding themselves unable to afford their utility bills. NEADA estimates that up to 4 million households experienced utility disconnections in 2025, nearly 500,000 more than in 2024. Meanwhile, total funding for federal heating assistance is on the decline —falling from $6.1 billion in 2023 to about $4 billion in 2025.
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