AGA Study Documents Continuing Need

A new study by the American Gas Association shows that low-income households still need help paying their energy bills and that assistance from the federal government does not meet the demand.

According to AGA’s report, “Low-Income Energy Consumers: The Need for Assistance Continues,” despite a record LIHEAP funding level of $3.2 billion for FY 2006, only 15 percent of the 38 million eligible households received LIHEAP.

While utility programs also provided significant help for needy families to manage their energy bills this past winter, the need continues to grow and is far greater than utility and civic programs are able to fulfill, the study said.

Other study  findings:

• There are 90 percent more households eligible for federal energy aid now than in 1981, despite the fact that eligibility for LIHEAP remains limited to the very neediest – in general those living below 150 percent of poverty level and those eligible for other assistance programs, such as food stamps.
  
  
• Between 1981 and 2006, there was a 126 percent increase in the consumer price index and energy prices increased considerably – some energy bills have tripled – and yet funding for LIHEAP increased by only 59 percent.
  
  
• While federal funding has increased, contributions from non-federal assistance groups have outpaced federal funding almost two to one. Between 2000 and 2005, non-federal energy assistance programs increased funding 183 percent.
  
  
• If the coming winter brings normal or colder-than normal temperatures, heating bills could approach or even exceed the record highs of last winter.

Source: AGA

Page Last Updated: October 3, 2006