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Consumers may be forced collectively to shell out more than $14 billion more for electricity and heating this winter compared to last year, according to a new report from the Consumer Energy Alliance (CEA).

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It comes at a difficult time for the country as consumers grapple with painfully high inflation, which only accelerated in September, jumping 8.2% from a year ago. This was the fastest pace in four decades.

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Rising heating costs this winter will only exacerbate the strain on households, according to the CEA. To back up their point, the defense team cited the latest Energy Information Administration (EIA) data that estimates how energy prices will rise across the board.

“Forecasting weather and energy trends for several months is not an exact science, but it is very likely that global dynamics affecting energy carriers will lead to higher heat prices in the US this winter,” EIA Administrator Joe DeCarolis said in a recent statement.

The EIA estimates that households that rely on natural gas as their primary heating source will spend about $930 this winter due to higher expected prices and consumption, up 28% from last year.

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Meanwhile, the EIA estimates that consumers are spending $2,354 on heating oil, up 27% from 2021. In addition, the cost of electricity this winter is estimated to rise by 10%, costing consumers about $1,359. The EIA also estimated that consumers will spend $1,668 on propane, up 5% from last year.

Companies such as Consolidated Edison Inc., which supplies power to about 10 million people living in New York and Westchester County, have already begun “urging customers to take action now to help them manage costs this winter as market prices for electricity and natural gas is expected to be significantly higher.”

Energy costs

The CEA said the administration’s “poor policy decisions” led to higher prices, although other experts, including the EIA, have argued that there are a number of global factors affecting energy prices.

“By imposing a moratorium on federal oil and gas development, canceling future federal lease sales, blocking pipelines and limiting energy infrastructure development, the strategic advantage the United States gained after becoming the world’s largest producer of oil and natural gas two years ago, completely disappeared. but disappeared,” CEA said.

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Nick Loris, vice president of public policy at C3 Solutions, told FOX Business that the Biden administration deserves only some censure due to “its anti-supply policies such as canceling rental sales and [the] Keystone XL Pipeline and the introduction of new rules that reduce investment.”

He noted that had the administration not revoked the permit for the northern section of the Keystone XL pipeline, it could be in operation and “account for about half of the recently announced OPEC+ production cuts.”

However, Loris said it’s “disingenuous” to place the blame solely on the Biden administration because “it paints an incomplete picture.”

heating costs

“The reality is that there are many reasons why prices are where they are,” he said, adding that the industry is “suffering from some of the same problems that other industries suffer from: supply chain problems and a shortage of workers.” .

“You also can’t ignore Putin’s war in Ukraine,” Loris said.

In fact, the EIA told FOX Business that Russia’s actions “created significant market uncertainty as much of Europe cut energy imports from Russia.”

In addition, the EIA also noted that the upcoming European Union bans on imports of crude oil from Russia in December and petroleum products in February will also have an impact.

The OPEC+ announced output cut also increased “the potential for global oil production to be below our forecast, which could lead to higher prices for crude oil and other energy commodities,” the EIA added.

In addition, the agency said that global reserves of natural gas and coal “remain relatively low, driving above-average prices for these commodities and electricity.”