Survey Shows 1.2 Million Families Disconnected

Millions of low-income families are facing severe hardships due to high arrearages from last winter’s heating bills, impending and actual utility shut-offs and unaffordable summer cooling costs. 

The National Energy Assistance Directors’ Association (NEADA) recently completed its first national survey of utility arrearages and shut- offs.  Based on a sample of 11 states representing 25 percent of all households, an estimated 1.2 million households have been disconnected from electric and natural gas service during the March through May period following the expiration of state shut-off moratoria.  On average, these families owe about $850 in past-due utility bills, with the total amount owed exceeding $1 billion.  The number of shut-offs is likely to rise as utilities continue credit and collection procedures related to the end of the winter shut-off moratorium period, according to NEADA. 

While historical shut-off data are not available, many states believe that shut-off numbers this year are higher due to increasing electric and natural gas rates coupled with reduced LIHEAP funding — from $3.2 billion in FY 2006 to $2.1 billion in FY 2007.

Source: NEADA

Page Last Updated: September 24, 2009