Heating bills expected to be 15% higher

ByABC News
October 7, 2008, 10:46 PM

— -- Consumers will pay about 15% more an extra $150 on average to warm their homes this winter, with those that rely on heating oil hit even harder, the Energy Department said Tuesday.

The average household will spend $1,137 on heating from October to March, says the department's Energy Information Administration. The increase reflects higher oil and natural gas prices and a forecast for colder weather than last winter.

Projected monthly household outlays are $15 less than the government's forecast last month and $45 less than its August estimate due to falling oil and natural gas prices.

"There's slowing economic growth, and based on that we're seeing lower demand and a further push downward on prices," says Jeff Pillon of the National Association of State Energy Officials.

Still, higher prices will further weigh on Americans already struggling with higher gasoline and electricity prices, plummeting home prices and a fraying economy.

"Energy is becoming less and less affordable for lower-middle-class and poor families," says Mark Wolfe, head of the National Energy Assistance Directors' Association, which represents programs that subsidize energy bills.

Congress last month boosted funding for the Low-Income Home Energy Assistance Program to $5.1 billion from $2.57 billion last winter. Still, Wolfe says, "The affordability problem will be so serious we might need to go back to Congress for more funding."

More than half of U.S. households heat their homes with natural gas. They'll pay an average of 18%, or $155, more this winter, EIA says, for a total bill for the winter of $1,010.

Consumers who rely on electricity for heating 35% of households will face a 10% increase, or an average $89. And the 6% of homes that use propane will pay 11% more, or an additional $188, for a total of $1,861.

The 7% of households that use heating oil will have to dig deepest into their pockets. They can expect to shell out an extra 23%, or $449, for $2,388 per household.