Many low-income households are finding that utility bills are unaffordable
of ConsumerAffairsMay 23, 2025
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Nearly 3 in 5 low-income Americans (57%) are experiencing energy poverty, a condition where households cant afford essential energy needs without sacrificing basics like food or medicine.
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Over 2 in 5 (42%) spend 10% or more of their monthly income on energy bills.
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Nearly 1 in 5 (19%) have gone without power because they couldnt afford to pay their bill.
Depending on where you live, May and October are about the only months of the year when your utility bills arent taking an oversized bite of your household budget. For many families, those other 10 months can be financially difficult.
A new study from Payless Power highlights a growing crisis across the United States: what it calls energy poverty. Defined as the inability to afford essential energy needs without sacrificing other basic necessities like food or medication, energy poverty is affecting nearly 60% of low-income Americans. The findings reveal a grim landscape of difficult choices, power shutoffs, and emotional strainall rooted in soaring energy costs.
According to the study, 42% of low-income individuals report spending at least 10% of their monthly income on energy bills, a burden that leaves little room for other essentials. Nearly one-third (31%) have delayed or skipped purchases of food, medication, or hygiene products just to afford their utility payments. And in a particularly stark statistic, almost one in five (19%) have experienced electricity shutoffs due to nonpayment within the past year.
About 25% of respondents admitted to enduring unsafe indoor temperatures to reduce energy use, and 65% said energy costs were increasing their stress or anxiety. Others reported sleep issues, health complications from temperature extremes, and feelings of shame or depression due to their living conditions.
Whos most affected?
Younger generations are bearing the brunt of this crisis. Sixty percent of Gen Z and 59% of millennials living in low-income households say they struggle to meet their basic energy needs. Generation X follows closely at 56%, while nearly half of baby boomers (48%) are also impacted.
Many households are taking drastic measures to cut back. Top energy-saving tactics include relying on fans or space heaters (45%), unplugging electronics (45%), and skipping heating or air conditioning altogether (44%).
Yet these sacrifices often arent enough.
The report found the situation is particularly dire in Texas, where more than three in five low-income residents report living in energy poverty. About 28% have had their power shut off in the last year, with cities like Houston (30%) and Austin (28%) seeing the highest rates of disconnection due to unpaid bills.
One-third of Texans also reported keeping their homes at uncomfortable or unsafe temperatures to reduce energy costs. Confusion around energy assistance programs is rampant: half of low-income Texans find the programs difficult to navigate, and nearly one in five were unaware that help even exists.
Searching for help
Payless Powers research also examined online search trends, identifying where Americans are most actively seeking help. States like Louisiana, Missouri, Arkansas, Texas, and Georgia topped the list for queries like help paying electric bill and energy assistance program.
At the city level, Atlanta, Baltimore, and Minneapolis ranked highest in search intensity, indicating not just awareness but desperation. In Texas, cities such as Killeen, Waco, and El Paso lead in per-capita search volume, further emphasizing the widespread need.
Despite this demand, more than half of low-income Americans (58%) havent applied for energy aid programs like LIHEAP. Many either believed they wouldnt qualify (41%) or didnt know how to start the application process (17%).
Compounding the issue is a lack of trust. Sixty percent expressed doubt that their local energy rates are fair or transparent. Nearly one in five said they had no faith that their provider would accommodate them with a payment plan if they fell behind.
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