High demand, federal funding cuts, strain Massachusetts utility assistance programs
BOSTON – As families in Massachusetts continue to struggle to afford their utility bills, a new brief analyzes Massachusetts Department of Public Utilities data and finds that residential gas and electric customers owe significantly more in unpaid energy bills than prior to the COVID-19 pandemic. As of September 2024, residential gas and electric customers owed more than $832 million in past due bills – an average of $997 per household (when including all residential households), and a much higher average of $1,471 among low-income households who are behind. Those figures represent an increase of more than 50% compared to September 2019.
This brief, Massachusetts Discount Rate Customers Falling Farther Behind on Utility Bills, is released ahead of utilities sending their scheduled April 1 “second reminder” notices. These notices advise customers that the November 15-to-March 15 winter moratorium, which prohibits disconnection of gas and electric service to low-income residential customers, has ended and that terminations will resume.
“Energy prices increase every year, but FY 25 federal LIHEAP funding for those struggling to pay their bills was already lower than recent years, and the state is only expecting to receive 90% of the funding that was initially announced,” said Anna Kowanko, research and data associate at the National Consumer Law Center and co-author of the report. “It’s no surprise that customers are falling further behind.”
Under the Low-Income Home Energy Assistance Program (LIHEAP), the maximum amount of assistance for those who heat with oil or propane was $1,950 for FY 24 and $1,450 for those who heat with electricity or gas. The maximum award in FY 25 for those who heat with oil or propane fell to $1,500, a 23% cut; the maximum award for electricity or gas dropped to $850, a 41% cut.
Of all the residential customers behind on their bills, the report finds that 50% of them were more than 90 days behind in September 2024, which is particularly concerning as customers in this situation are at a high risk for termination outside of the winter moratorium.
Households face significant consequences when they are unable to pay their energy bills. Customers who use medical equipment such as ventilators or oxygen concentrators face serious health risks from utility disconnections. Losing essential utility service makes it difficult to cook meals or impossible for children to complete their homework. And tenants in public and subsidized housing face eviction if they lose their utility service.
“These affordability challenges facing low-income Bay Staters have been present and growing for many years,” said Charlie Harak, senior attorney at NCLC and co-author of the report. “It is critical that Massachusetts regulators, policymakers, utilities, and stakeholders work together to implement policies and programs to reduce high energy burdens. And the federal government must increase the amount of fuel assistance funds made available to states.”
Related Resources
- Utility Help in Massachusetts, Mar. 13, 2025
- Protecting Access to Essential Utility Service During Extreme Heat and Climate Change, July 16, 2024
- More Can & Must Be Done to Prevent Utility Consumers from Losing Service Due to Mounting COVID-Driven Arrearages in Massachusetts and Other States, Nov. 15, 2021
Support NCLC
Please support NCLC's work to advance consumer rights and economic justice with a tax-deductible contribution today!
Donate