Rising costs and utility uncertainty: Exploring America’s energy-fueled anxiety

Key takeaways:

Rising energy costs have become a significant source of anxiety for Americans, with 43% admitting they experience anxiety over receiving their utility bills each month.
Consumers aren’t helped by their lack of literacy regarding energy supply and cost, with 14% admitting they’re ‘poor’ when it comes to understanding electricity bills or how to understand gas bills.
With 11% of Americans having had their utility supply cut due to missed payments, 25% avoid opening their bills due to financial fears, while many are pointing the finger at utility providers for causing confusion and overcharging.
Seeking ways to save on electricity bills, 12% of Americans are considering moving cities or states.

Job prospects are dwindling, wages are falling, and purchasing power is plummeting. But do you know what is increasing? The figure on your latest utility bill, meaning the average American has less money in their pocket, yet must pay more to power their home.

The perfect storm of extreme weather, supply shortages, regulatory pressures, and supply chain disruptions have pushed prices up. Affected by the economic turbulence, utility companies are charging customers more to maintain profitability. Amid the doom and gloom, switching on the lights has become unaffordable for many.

PowerSetter surveyed 2,000 Americans on their utility bills, how they’re dealing with the additional expense, and the impact cost rises are having on their mental well-being. The results show that ever-increasing bills have become a monthly source of financial dread—taking its toll on America’s wallets and minds.

Energy consumption awareness: Turning a blind eye to utility bills

Utility costs have been rising steadily, outstripping even the current high rate of inflation, yet many Americans are unaware of how much more they’re paying out. While the majority (72%) look at their bill every month, 19% admit they only check twice a year at most.

However, 25% of Americans don't leave their bills unopened because they earn enough not to care. Rather, it’s because the unpaid bills are stacking up and their financial fears are mounting. As the saying goes, ignorance is bliss (until the payment bounces and the lights go off).

Billing betrayals: Are Americans losing trust in utility providers?

Despite spending so much energy stressing over utilities, 64% of Americans feel that their understanding of utility bills is average at best. In fact, 14% admit their abilities are ‘poor’.

Full of technical jargon, pricing structures that are constantly in flux, and costs based on estimates rather than actual usage, it’s no wonder that understanding electricity rates leaves many scratching their heads, and figuring out how to understand a gas bill is a major source of stress.

The confusion that often comes with understanding your utility bill is due to the complex energy market. Fluctuating supply and demand, changing regulations, supply chain issues, and infrastructure costs constantly influence energy prices. Boiling the numerous factors down into a number at the end of the month proves challenging.

However, many consumers aren’t convinced, with a lack of clarity fuelling distrust in utility suppliers. Some 49% of Americans believe that utility companies intentionally make their bills confusing—in an apparent industry-wide ploy to overcharge customers and avoid confrontation.

Likewise, whether due to system glitches, human error, or fraudulent practices, 36% of Americans don’t trust their utility provider to provide them with an accurate bill at the end of the month.

With good reason—24% of Americans have spotted a pricing error on a previous utility bill. And that’s only those who bother to check and can get their head around the numerous figures on their bill.

Burned out: The mental cost of America’s mounting energy bills

Sky-high utility costs aren’t just draining America’s savings accounts. Constantly worrying over whether they’ll be able to cover the costs, 43% admit receiving their utility bill causes them considerable anxiety each month. With money troubles keeping them awake at night and constantly occupying their mind throughout the day, unaffordable utilities are costing many Americans their mental well-being.

Unfortunately, the growing fear that the lights will switch off and the hot water will run dry isn’t irrational. In fact, with census data showing one in nine American households suffer from utility poverty—where their income isn’t enough to keep on top of energy, fuel, and water costs—11% of Americans admit they have already had their utility services switched off by a supplier after failing to make payment.

Running from rising costs: Can moving save money on energy bills?

There’s no running away from your utility bills—unless you want a dark home and rising debt—but you can relocate to an area where costs are fairer on the wallet. As utility costs continue to soar, 15% of Americans are considering moving homes, with 12% planning to relocate to a different city or state.

Those looking for ways to save money on electric bills will be best off living in Nebraska, for instance, the only state that generates 100% of its electricity through publicly-owned power systems. Likewise, for eco-conscious consumers who prefer green energy suppliers, Texas—the nation’s largest producer of renewable energy—would be the perfect place to call home.

But, often, finding ways to lower the electric bill or save money on gas doesn’t require switching states. Rather, you can switch suppliers. With the US energy market becoming increasingly deregulated, consumers in many states can shop for alternative electricity providers and gas distributors willing to power their properties for less.

Using PowerSetter’s utility comparison service, finding alternative energy suppliers is far easier than finding a new home.

Methodology: The data in this report derives from a survey conducted by powersetter.com. The survey was launched in August-September 2024. In total, 2,000 adults in the US were surveyed, and all respondents took the full survey. All genders, ethnicities and age groups over 18 years old were included in the study.