'I had no electricity for six months': American families struggle with soaring energy prices

By Danielle Kaye BBC Business (Finance) 11 January 2026

For six months last year, Kristy Hallowell’s home in Greenwood Lake, New York, was dark. After losing her job, the 44-year-old single mother watched her monthly energy bill triple to an unmanageable $1,800. Her utility provider cut off her gas and electricity, forcing her, her two children, and her mother to rely on a generator for basic light and heat. While a local non-profit has since helped restore her electricity, Ms. Hallowell remains without gas and faces a mounting debt of around $3,000, living in constant fear of another shut-off. "This has been traumatic, to say the least," she said.

Ms. Hallowell’s experience is a stark illustration of a burgeoning crisis across the United States. Millions of American households are falling behind on their energy bills, caught between soaring prices and stagnant incomes. The issue has escalated into a primary cost-of-living concern for consumers and a significant political challenge for President Donald Trump's administration, which is facing growing voter anxiety over the economy.

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The Scale of the Debt Crisis

Recent data paints a grim picture of household financial distress driven by energy costs. An analysis of consumer credit data reveals a significant uptick in utility arrears, signaling that a growing number of families are unable to keep up.

• At-Risk Households: A report from the Century Foundation and Protect Borrowers found that nearly one in 20 U.S. households is at risk of having its utility debt sent to collections as winter deepens.
• Rising Delinquency: The same analysis showed the number of households with severely overdue utility debt rose by 3.8% in the first six months of President Trump's second term.
• Soaring Balances: Non-profits on the front lines report a dramatic increase in the size of the debt. Laurie Wheelock, executive director of the Public Utility Law Project of New York, noted that before the pandemic, her clients typically owed between $400 and $900. Now, it is common for them to owe upwards of $6,000.

A Political Flashpoint

The spike in energy costs has not gone unnoticed in Washington. Official economic data from November showed electricity prices climbing 6.9% from the year prior—a rate far exceeding overall inflation. This reality stands in sharp contrast to the administration's public messaging.

President Trump, who campaigned on a promise to cut energy bills in half, has insisted that costs are declining. "Costs under the TRUMP ADMINISTRATION are tumbling down, helped greatly by gasoline and ENERGY," he posted on social media in November.

The White House has officially blamed lingering economic pain on the policies of former President Joe Biden and interest rate decisions by the U.S. central bank. However, following Democratic victories in recent state and local elections and polls showing a decline in consumer confidence, the administration has begun to shift its messaging to focus more on affordability.

This pivot comes as the federal government has proposed deep cuts to the funding it provides states for low-income utility bill assistance, creating a potential policy collision.

"This is going to be a huge deal, both as a policy matter and a political matter," said Alex Jacquez, chief of policy and advocacy at the Groundwork Collaborative, a progressive economic think tank.

The Drivers Behind Higher Bills

Analysts point to a confluence of market forces and policy decisions that are pushing residential energy costs higher.

• Natural Gas Prices: The price of natural gas, a critical fuel that generates nearly half of all electricity in the U.S., has jumped significantly over the past year. Analysts note that the industry's push to export more production overseas is tightening domestic supply and contributing to higher prices at home. John Quigley, a senior fellow at the Kleinman Center for Energy Policy, stated that electricity generation was "being saddled with ever-increasing costs of fuel."
• Clean Energy Rollbacks: The Trump administration's policy of rolling back clean energy initiatives is also cited as a major contributing factor. A recent decision to pause new leases for offshore wind projects near the Atlantic coastline is one prominent example. A report from the advocacy group Climate Power claims the administration's cancellation of renewable projects—which would have produced enough electricity to power 13 million homes—has directly contributed to rising costs.

A Difficult Winter Ahead

As colder weather sets in, the pressure on household budgets is expected to intensify. The National Energy Assistance Directors Association (NEADA) is forecasting a sharp increase in heating expenses for the current season.

• Winter Forecast: NEADA projects that winter heating costs will jump by an average of 9.2%, driven by the dual impact of rising electricity and natural gas prices, compounded by predictions of unusually cold weather.
• National Strain: While the northeast U.S. traditionally sees some of the nation's highest energy bills, households from California to Georgia to South Dakota are all reporting significant strain from rising costs over the past year.

For families already struggling, the combination of higher bills, mounting debt, and the potential for reduced federal aid creates a perfect storm. Ms. Wheelock of the Public Utility Law Project observes that her clients are being forced into impossible choices, letting utility bills slide as they prioritize rent, food, and healthcare. "There's been this difficult mix of increased costs and financial instability," she added. As winter continues, the financial stability of millions of American families will depend on whether relief arrives before the lights go out again.