EIA predicts that heating US homes with electricity will cost more than it did last winter
The Energy Information Administration reported on Wednesday that U.S. homes heated by electricity primarily will spend 4% more to stay warm this winter, due to forecasts of higher power prices.
The demand for electricity will likely outpace supply due to the growth of data centers, which are driving the AI boom. Also, the electrification and automation of other industries, such as transportation, should result in higher prices for American consumers.
The EIA said that households who heat their homes with electricity will have to pay more in the winter, even if temperatures are around 10% higher than the base case scenario.
The EIA stated that homes heating with propane or heating oil will pay less than homes heating with natural gas this winter.
The EIA reported that the national prices for natural gas heating will increase by an average of 1% this year, but that consumption is expected to drop by 2%. This will result in a 1% reduction in the average bill.
The EIA stated that the national average consumption of heating oil and propane is expected to drop by approximately 2%.
EIA stated that the EIA expects electricity consumption to be 1% lower than last winter, despite a 5% increase in prices nationwide.
EIA reported that the number of households using electricity for their primary fuel will increase by 2% to over 57 millions this winter, while those using heating oil are expected to decrease by 4%.
The U.S. Northeast is the main area where heating oil is used. It causes a lot of pollution. Regulators are pushing for homes to switch to cleaner burning sources such as gas or electricity.
The EIA warned that consumption and spending will be affected by how harsh winter is, and the commodity price movements over the next few months.
It said that the agency would update its winter fuels predictions each month until March 2026 in order to reflect these changes. Reporting by Shariq KHAN in New York Editing Bernadette BAUMA
(source: Reuters)
