Following a moratorium, regulators could also consider debt forgiveness as households recover. And state regulators could prevent utilities from charging late and reconnection fees while the pandemic persists and people remain unemployed. For example, Congress could pass legislation imposing a universal moratorium on utility shutoffs. Some may try to cope without important energy uses, such as air conditioning, fans and refrigeration.įederal and state governments can help. We expect that this trend will move a whole new population of households into energy insecurity. The combination of rising energy use and falling incomes is likely to increase low-income households’ energy burdens – the proportion of their incomes they spend on energy. And, as the school year begins, students attending school from home will need to power computers and other devices. They are running air conditioners, refrigerators, cooking appliances and electronic and medical devices. Approximately 22% of respondents reported that in the previous month they had reduced or put off expenses for basic needs like medicine or food in order to pay their energy bills.Īs people spend more time at home through the hot summer months, many are using more energy for essential services. Households facing such hardships must choose between covering energy costs and other expenses. Before the pandemic, 22% had already lacked health insurance. Of those with a change in employment status, approximately 15% lost their health insurance, and an additional 10% experienced a reduction in benefits. It included questions about energy expenses, household energy behavior and activities since the onset of the COVID-19 pandemic.Ībout a quarter of survey respondents had lost jobs, had their hours reduced or been placed on furlough without pay since the start of the pandemic. The survey was taken by 2,381 respondents. YouGov, a private polling and market research firm, conducted the survey online from Apthrough for our Indiana University research team.
We surveyed a nationally representative sample of households at or below 200% of the federal poverty line, which is about US$51,500 for a family of four. Many households will struggle to cover monthly expenses such as energy bills, along with necessities such as rent and groceries. Power shutoff moratoriums in many states are reaching their expiration dates. Now the COVID-19 pandemic presents an additional, unprecedented challenge. Risks include exposure to dampness, mold and humidity dangerous practices, such as using stoves for space heating and feelings of chronic stress, anxiety and depression.īefore 2020, energy insecurity was expected to worsen due to rising energy costs, coupled with more frequent heat waves and cold spells due to climate change. When families cannot afford to keep their lights on, or heat or cool their homes to comfortable temperatures, they suffer physically and mentally. Our survey is the first to try to quantify it among low-income households. It disproportionately affects those at or below the poverty line, Black and Hispanic households, families with young children, people with disabilities and those who use electronic medical devices. As scholars who study energy policy, the environment and energy justice, we believe energy assistance should be a central part of ongoing state and federal relief efforts.Įnergy insecurity is already a widespread problem in the U.S. Still, extrapolating our findings to the national level suggests that approximately 800,000 low-income households may have recently had their electricity disconnected.Īnd the problem could get worse as the economy continues to struggle. More than half of the states temporarily barred utilities from disconnecting customers who were unable to pay their bills due to financial hardship in the early months of the economic downturn. We found that 13% of respondents had been unable to pay an energy bill during the prior month, 9% had received an electricity utility shutoff notice and 4% had had their electric utility service disconnected. low-income households to measure energy insecurity. We ran a nationally representative survey in May 2020 of U.S. That’s a big concern during extreme events like summer heat waves, which can be deadly – especially for elderly people, young children, people of color and the poor. Several months into the COVID-19 pandemic crisis, lower-income families are struggling to pay their energy bills.
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