America’s electricity bills have emerged as an unexpected driver of inflation despite energy costs in general moving downwards.
January’s inflation data shows the electricity index rose 3.8 percent in the last year – above the 3.1 percent overall figure.
But a new study by Texas Electricity Ratings reveals how some bills can vary by as much as $2,400 between states.
Its findings show households in Hawaii are projected to spend the most this year, with their average electricity bill reaching $3,450. This is despite the fact households consume 24 percent less than the national average.
The Aloha state was followed by Maine where bills are projected to be $2,383 on average.
The top five was rounded out by Florida, Connecticut and Rhode Island. Typical bills in these states will be $2,367, $2,362 and $2,361 respectively.
By comparison, Utah came out as the cheapest state with bills totaling just $1,047 a year. It means a household in Utah can expect to pay $2,403 less than those in Hawaii.
Researchers analyzed data from the Environmental Investigation Agency (EIA) to predict what bills in each state would amount to in 2024.
Prices often depend on how close each state is to energy sources. Some pay more if they require fuels to be transported from long distances.
Hawaii, for example, is so isolated it is entirely self-sufficient for energy – pushing up costs further. While other states
And the issue is compounded by whether or not a state benefits from a deregulated market.
A deregulated state is where one utility company controls the distribution of poles and wires but several different providers can supply electricity to customers, homes and businesses – encouraging competition between providers to lower their prices.
Comparatively, a regulated state is where a single utility owns the entire power supply.
Some 40 percent of US states are deregulated, according to CNET.
But across the board electricity costs have been pushed up due to huge investments into ageing infrastructure across the US.
Last year, analysis by DailyMail.com found families could shave over $100 off their annual energy bills by simply turning off so-called ‘vampire devices’ left on standby
Energy expert Robin Saidov, who runs the website YourEnergyFootprint.com, told DailyMail.com: ‘Energy providers are regulated by their state. When they want to raise prices, they have to demonstrate that they are making an investment.’
According to solutions company Utilities One, more than 640,000 miles of America’s high-voltage transmission lines are at least 25 years old.
Meanwhile over 50 percent of all circuit breakers are more than 30 years old.
It is estimated that utilities in the US spend more than $100 billion annually to maintain aging infrastructure.
Energy expert Robin Saidov, who runs the website YourEnergyFootprint.com, told DailyMail.com: ‘Energy providers are regulated by their state. When they want to raise prices, they have to demonstrate that they are making an investment.
‘There is also much more smart technology now which costs money to install and maintain.’
However, households are able to shave money off their bills no matter where they live.
Last year, analysis by DailyMail.com found families could shave over $100 off their annual energy bills by simply turning off so-called ‘vampire devices’ left on standby.
These include: cable boxes, printers, speakers, desktop computers, toasters and gaming consoles.