Your electric bill is rising faster than inflation. Here’s why
PA Consulting renewable valuation expert, Akshat Kasliwal, spoke to The Wall Street Journal about the expected rise in residential power bills.
US electricity bills are rising faster than grocery prices due to higher natural-gas costs, infrastructure upgrades, soaring power demand from data centres, and utility investments. Summer bills are expected to increase 4% from last year, pressuring households, with price hikes likely to continue into next year, outpacing inflation.
The article notes: Electricity prices across the country have increased 4.5% in the past year, according to Labor Department data released Wednesday, topping the 2.2% jump in the price of groceries. More broadly, consumer prices rose 2.4% in May from a year earlier.
Electric bills are expected to keep climbing this summer along with the temperatures.
Power bills include the cost of producing and delivering electricity. “On both fronts, there is little reason to believe that ratepayers will see easing pressure on their pocketbooks,” said Akshat Kasliwal of PA Consulting, who expects elevated electricity costs for the next 12 to 18 months.
Read the full article in The Wall Street Journal.
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