{"id":22716,"date":"2020-11-08T02:11:21","date_gmt":"2020-11-08T02:11:21","guid":{"rendered":"https:\/\/www.lifeandnews.com\/articles\/?p=22716"},"modified":"2020-11-09T03:51:55","modified_gmt":"2020-11-09T03:51:55","slug":"delinquent-electric-bills-from-the-pandemic-are-coming-due-who-will-pay-them","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/delinquent-electric-bills-from-the-pandemic-are-coming-due-who-will-pay-them\/","title":{"rendered":"Delinquent electric bills from the pandemic are coming due \u2013 who will pay them?"},"content":{"rendered":"

Theodore J. Kury<\/a>, University of Florida<\/a><\/em><\/p>\n

The shutdowns and restrictions that governments have imposed to limit the spread of COVID-19 have made it hard for many households to afford basic needs. Thousands of Americans are struggling to pay monthly utility bills<\/a>.<\/p>\n

Utilities and policymakers recognized that services like water and electricity are essential to<\/a> people\u2019s health, safety and comfort. Since mid-March they have taken steps to keep those services coming.<\/p>\n

The most popular approach has been for them to impose moratoria on late fees and disconnections for nonpayment of bills. Every state in the U.S. has enacted some version of this policy<\/a>, from formal declarations<\/a> to voluntary programs offered by utilities.<\/p>\n

\"Map<\/a>
Map of disconnection moratoria as of Nov. 3, 2020.<\/span>
\nNARUC<\/a><\/span><\/figcaption><\/figure>\n

But now these moratoria are starting to expire<\/a>. Consumers are worried about whether their utility service will be accessible or affordable<\/a>.<\/p>\n

As director of energy studies<\/a> at the University of Florida\u2019s Public Utility Research Center<\/a>, I\u2019ve studied the impacts of COVID-19 policy<\/a> on electric utilities, customers and regulators. These unpaid bills could affect many Americans\u2019 lives, and in my view, there is no straightforward way to handle them.<\/p>\n

A price tag in the billions<\/h2>\n

The National Energy Assistance Directors Association<\/a>, which primarily helps states manage utility programs that assist low-income customers, recently estimated total unpaid electric bills as of July 31, 2020 at almost US$10 billion<\/a>. This amount could grow to nearly $24 billion by the end of the year \u2013 equivalent to about 15% of what U.S. households spent on electricity<\/a> in 2019.<\/p>\n

And the challenge won\u2019t end there. Moratoria in nine states including California, New York and Wisconsin, covering over 23%<\/a> of U.S. residential electricity customers, are expected to extend into 2021.<\/p>\n

Although this is a nationwide problem, there has been no concerted national effort to gather data on COVID-19-related utility debt. So far the most precise numbers are coming from formal regulatory filings in states like North Carolina<\/a> and Indiana<\/a>, and from informational workshop presentations<\/a>.<\/p>\n