As summer heats up, prepare for your wallet to melt down.
Residential electricity rates could soar 40% higher this summer compared with 2021, according to an estimate from Barclays PLC, Bloomberg reports. Meanwhile, the U.S. Energy Information Administration projects that retail residential rates will rise more in 2022 than they have in any year since 2008.
If you have the misfortune of living in a place that has hot summers, the cost of air conditioning your home could blow a major hole in your budget in the coming months.
Although summer has yet to arrive officially, many places already are feeling the heat from higher energy prices.
Bloomberg reports that the following cities saw their energy spending skyrocket between April 2021 and this April, based on consumer price data compiled by the U.S. Bureau of Labor Statistics (BLS):
- Miami: 38% higher
- Dallas: 28%
- Minneapolis: 27%
In fact, 19 of the 23 metro areas surveyed by the BLS saw their energy spending jump by double digits year over year in April.
Several factors appear to be behind the spike in energy prices, ranging from tight supplies of natural gas and coal to drought in the West, according to Bloomberg.
Before you panic over the prospect of sky-high summer bills, know that there are many things you can do to lower your energy costs.
Get a fast start on slowing down those summer bills by checking out “22 Mistakes That Send Energy Bills Soaring.”