As winter approaches, those who rely on oil to heat their homes may find themselves bracing for rising energy costs. The National Energy Assistance Directors Association estimates that the cost of home heating will rise by 17.8% from $1,025 to $1,208 this winter; the highest level in more than a decade.
Inflation is one of the reasons for the rising prices. Russia’s war in Ukraine has played a pivotal role in the dramatic rise in energy prices. To punish Moscow for the invasion, the United States banned Russian oil imports, while the European Union intends to impose a gradual embargo. Crude oil prices on the worldwide market soared from roughly $76 per barrel at the start of January 2022 to more than $110 per barrel on March 4, 2022. When the Ukrainian war ends, the cost of oil will drop drastically. Please
The average cost of home heating is expected to rise by 17.8% from $1,025 to $1,208 this winter heating season, while in New England, households typically keep their homes warm with heating systems powered by natural gas and oil. Natural gas, which heats nearly half of all U.S. households, is expected to increase heating bills by 28% this winter according to the Energy Department. According to the agency, heating oil will be 27% more expensive and electricity will be 10% more expensive.
In response to this resource crisis, Congress increased funding for the Low-Income Home Energy Assistance Program, also known as LIHEAP, by $1 billion, making it at least $4.8 billion. This program assists in covering a portion of the cost of a household’s primary source of heat, such as oil, electricity, natural gas, propane, kerosene, wood, coal, and so on.
Homeowners, renters, and households with heating costs included in the rent are eligible to apply. The applications for the upcoming heating season opened on October 1. Applying for the program is completely free. Households can apply online, in person at a LIHEAP agency in your area, or by mail. Eligibility considers the household size, combined gross annual income of household members, and several other factors.
Household income cannot exceed 60% of Massachusetts’ estimated State Median Income to be eligible for the program. In 2023, the median income for an individual is $42,411, for a family of two is $55,461, and for a family of four is $81,562. According to Kathy Tobin, Energy Director at Action for Boston Community Development (which operates a LIHEAP site), ABCD has received over 12,000 applications for the LIHEAP program as of the beginning of November, which is slightly higher than that of last year at the same time. She said, “LIHEAP is a lifesaving program in many ways, helping households survive through extreme cold winters in periods of crisis. We are working hard to expand to accommodate a larger population since the 60% median income restriction can alter person’s enrollment to the program.” If household’s income exceeds 60% of Massachusetts’ projected median income, the Massachusetts Good Neighbor Energy Fund is available to any Massachusetts citizen who, due to temporary financial difficulties, is unable to cover a month’s energy bill and is ineligible for state or federal energy assistance. Income must be between 60% and 80% of the state’s median income. For example, a household of two should have a total gross yearly income between $55,462-$73,948.
The Coordinator of AACA’s Multiservice Center told this reporter that the average home heating costs for clients reaching out to AACA for heating assistance in 2020 was $50 to $100. The average costs seen so far in 2022 are $80 to $180…and the costs are expected to continue to dramatically increase. She said, “This is in line with what the media and energy providers in Massachusetts predicted as the season turns. Residents will be seeing their home energy bills get extraordinarily expensive. National Grid warned that its base electricity rates in Massachusetts would double beginning Nov. 1, meaning the average customer will see their monthly electric bill jump 64% compared to last winter. As a result, the number of clients seeking heating assistance at AACA is already increasing.”
If you are experiencing difficulty in paying your fuel bills, please contact AACA for assistance. Call 617-426-9492 or email flio@aaca-boston.org.
