Feds: Electric Heating to Cost More This Winter Posted on December 15, 2025 As the temperature goes down, so do the heating costs go up. And for electric heating, the numbers are set to be noticeably higher compared with last year – a trend driven by increasing wholesale and retail power prices, according to government forecasts. What the Numbers Say The US Energy Information Administration (EIA) projects that residential electric heating will rise by roughly 4% more this winter compared with 2024. According to the agency’s Winter Fuels Outlook for 2025-2026, the uptick in charges is driven by an expected 5% increase in retail electricity prices nationwide. While electrical consumption for heating is forecast to be about 1% lower this year due to a milder expected winter, the price increase more than offsets the drop in demand. For context, there was a modest 2% increase in residential electric heating last year. Why Costs Are Rising The bill increase is caused by several factors: 🗹 Rise in wholesale power prices In 2025, wholesale electricity costs are forecast to average about $40 per megawatt-hour (MWh), a 7% increase over 2024. 🗹 Higher gas prices The cost of natural gas, a primary fuel for many electricity generators, has surged. Higher natural gas costs ripple outward to electrical providers, which in turn pushes up the retail prices to households. 🗹 Increased maintenance costs According to the EIA, infrastructure, maintenance, and grid-related costs that include transmission, distribution, and backup supply, are putting upward pressure on electricity rates, making electricity more expensive over time. Consumer Impact While the 4% average is a nationwide benchmark, actual increases will vary by region. Cold-weather regions such as the Northeast and the West can expect to see higher rates. Some Northeast areas are forecast to see residential electricity prices as high as 24 cents per kWh, or roughly a 6% increase. As such, households in the coldest regions may face winter bills significantly above the national average. The surge in electric utilities is not limited to winter heating. The EIA warns that retail electricity prices have been rising faster than inflation since 2022, and that trend is expected to continue through at least 2026. In contrast, homes heated with natural gas are expected to see little change, and those using propane or heating oil may even pay less. How to Mitigate the Impact If you are in the market for a new electric heating system or looking to upgrade, consider going for energy efficient electric heaters to lessen the impact of rising utility costs. If your home has a gas line, you may also want to consider using a gas heater to further save on costs, or even a propane heater to take advantage of the lower fuel prices. We carry a wide range of electric, gas and propane heaters to suit all types of homes while reducing heating costs for your household. See our related articles to get you started on efficient heating: A Guide to Heater Efficiency 4 Things You Can Do to Reduce Heating Costs in Winter 8 Practical Tips to Lower your Heating Bill this Winter Mickey Luongo Mickey is the resident heating and air conditioning expert with over 15 years of experience in the industry.
