At least 20 million households (about 1 in 6 American homes) are behind on their power bills. Soaring electricity prices are going to spark what is said to be the worst-ever crisis in late utility payments and result in a “tsunami of shutoff” just as the colder months of winter approach.
According to a report by Bloomberg, which was citing data from the National Energy Assistance Directors Association (Neada). Neada said electricity prices had increased significantly since 2020 after a decade of stagnation. The steep rise has resulted in billions of dollars in overdue power bills.
Electricity inflation is being propelled by soaring costs of fossil fuels, such as natural gas, coal, and petroleum.
Source: Bloomberg
NatGas fuels about 40% of the US power grid and soared to the highest levels since 2008 on Tuesday.
Source: Bloomberg
The chart below shows for the two decades, real electricity prices were relatively flat, except for the commodity boom times around the 2008 GFC. Now CPI less energy has peaked, though electricity continues to rise to a blistering 30% year on year.
Source: Bloomberg
Utility shutoffs have become more common across the US as some lower-tier households are thousands of dollars behind on their power bills. Coupled with the rising food prices, things are not looking up for those who are barely getting by. Many have maxed out credit cards or are close and still cannot manage to pay all of the bills. Households are making the choice between heating their homes or feeding their kids.
Across the country, power companies reported a surge in non-payment customers. California’s PG&E Corp said there had been a 40% jump in the number of residential customers behind on payments since February 2020. New Jersey’s Public Service Enterprise Group said customers at least 90 days late have risen 30% since March.
“People on the bottom, they can’t pay” their electricity bills, said Mark Wolfe, Neada’s executive director.
As ZeroHedge said:
It’s only a matter of time before the Biden administration starts handing out stimmy checks for electricity bills.
Of course, that will only exacerbate the already massive problem.
The ruling class looks like their goal is to take everything from everyone and own it all by impoverishing as many as they can. After all, their endgame is “you’ll own nothing and be happy.”
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