Tens of millions of homes in the U.S. are behind on electric payments, which has led to power companies shutting off their utilities, a Bloomberg report said Wednesday (Aug. 24).
The issue is the “worst crisis” the National Energy Assistance Directors Association (Naeda) has documented, propelled by higher electricity prices and a soaring natural gas costs.
About 20 million U.S. households — roughly 1 in 6 — have fallen behind on utility bills.
The power bill crisis is worse in Europe, where natural gas prices have spiked because of the Russian invasion of Ukraine. Policymakers have started aid programs for struggling families to help them pay the bills.
But in the U.S., there has been no such attempt at a similar program, and much of the focus has been on the price of gas at the pump.
There have been a lot of utility shut-offs, a dire possibility as the summer dragged on and the heat shattered records. The Bloomberg article noted the number of Americans who have had to make hard choices between using their tighter wallets for food, housing or electricity.
The report also said that California’s PG&E Corp. saw an over 40% jump in the number of residential customers behind on payments since February 2020, while New Jersey’s Public Service Enterprise Group saw a boost of over 30% for those who are at least 90 days late.
But the economic woes of the past several months have been almost universal, with the U.K. seeing a 10.1% jump in inflation in the year to July.
Read more: UK’s 10% Inflation Rates Stretch Consumers’ Paychecks and Patience
PYMNTS wrote that inflation has caused people to pay more attention to terms like “financial literacy” or “spend management,” as they try to focus on short-term ways to alleviate the burdens of the economy.
This has also seen a number of digital-first challenger banks, including Monzo, Revolut and Starling, debuting features to help with money management.
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