Rising Electricity Bills Force Americans to Skimp on Essentials

06 November 2026

Consumers struggle to keep lights on, stay warm, and eat as prices surge without end in sight.

Electricity bills are becoming unaffordable for many Americans, driving them to cut energy usage and scrimp on necessities like food and heating. According to a Consumer Reports survey, 81% of homeowners say their power bills have increased in the past three years. About three-quarters of respondents say the higher costs have strained their finances.

For many, the choice comes down to electricity or food. PowerSetter found 31% of households are spending less on groceries to afford utilities. A Consumer Reports survey found similar numbers, with about one in five Americans saying they've cut back on food to pay their electric bills. All that as prices keep climbing: federal data shows electricity costs have jumped 14% in major cities in just three years.

The Vanishing Middle Ground

The country's poverty problem has long been expected to grow because of high prices in general. But it now appears that certain key areas of the budget are disproportionately borne by the middle class. Consumer Reports found that lower-income Americans (incomes below $85,000 annually) are more than twice as likely to say rising electricity bills are causing a serious financial squeeze. Some households may qualify for federal energy assistance, but many middle-income households are applying too - with little success due to tightening income requirements.

The Consumer Reports results highlight how the affordability crisis spans all income levels. Nearly half of respondents suspect utility profits are the biggest factor in rising rates. Bank of America data shows that electric and gas prices surged 10% and 18% respectively from January 2024 to mid-2026, outpacing overall inflation at the same time, as policymakers grapple with a green transition.

Some figures are eye-popping: The Century Foundation reports a 35% increase in typical monthly energy bills from 2022 to 2025, nearly three times the inflation rate over the same period. PowerSetter's survey adds details on how this is playing out in people's lives, with 80% cutting somewhere in their budgets in anticipation of higher summer utility costs. A quarter of respondents have cut entertainment spending. One in five are skipping vacations.

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The outlook for the most vulnerable remains bleak. The National Energy Assistance Directors Association projects that one in six US households will fall behind on utility bills by the end of 2026, with a combined $25 billion unpaid. Nonprofits estimate 80 million Americans are already struggling to pay or are behind on bills, leaving some to live uncomfortably hot in summer and cold in winter to keep the lights on.

Some are scaling back on usage too. Reports note a rise in inflation and widespread consumer frustration. Surveys show that one in five Americans are making food-power tradeoffs, with some cooking less or skipping laundry. The average monthly electricity cost stands at nearly $200, with total utilities close to $300. It's unclear what it will take to reverse these trends.

Americans are being pushed and pulled by competing pressures - green energy mandates versus basic needs at home. The frustration of average consumers is reaching an all-time high, as most find ways to live within means while facing costs that outpace incomes. Middle-class households feel particularly squeezed, with many abandoning hope of assistance from either government or private industry.

The situation reflects deeper economic tensions. Rising costs are outpacing wages, with energy expenses growing faster than overall inflation. The burden falls heavily on families already stretched thin, forcing difficult choices between basic necessities. Without meaningful relief, millions will continue facing impossible decisions about which essentials to sacrifice each month.