Americans Jolted By Electricity Bill
Americans are going to be surprised this summer.
Summer is almost here and that means our air conditioners will be on full blast. The bad news however is that the cost of energy is expected to rise this year resulting in higher costs than in summer 2021.
According to Fox, the U.S. Energy Information Administration (EIA) has estimated that the average increase for the price of electricity will be around 3.9% for an average American household this summer. For the entire summer the EIA has predicted that the cost of electricity will rise 0.9% compared to the year before.
Vice president of public policy for C3 Solutions Nick Loris explained, “The higher price is largely driven by supply and demand. Particularly with natural gas, which provides 38% of our electricity needs, we’ve been operating in an environment of constrained supply and higher demand.”
Loris further explained, “When the pandemic hit prices were low and remained low, so there was not much of an incentive to supply more. As the economy opened back up, demand increased and outpaced supplies. Russia’s invasion of Ukraine made things worse.”
